Exporters urged to improve product quality, hurdle non-tariff measures

Small and medium enterprises (SME) exporters must improve their product quality and hurdle nontariff measures to effectively penetrate Europe's huge market and to be able to compete internationally.

Philippine Exporters Confederation Inc. (PHILEXPORT) President Sergio Ortiz-Luis Jr. said there are business opportunities waiting to be tapped with the formal acceptance of the Philippines into the European Union (EU)-Generalized System of Preferences Plus (GSP+).

“At this point, the ball is already in the hands of our exporters to study specific EU markets to serve based on their capacities and strengths,” he said during a market briefing seminar organized by the World Trade Center Metro Manila.

While home to over 500 million consumers with about $36,000 gross domestic product (GDP) per capita, Ortiz-Luis stressed that the EU has “very discriminating taste and a stickler to quality.”

“This moves EU market requirements to a much difficult, even expensive level as we now deal with non-tariff measures that are increasing in number and impact especially on SME exporters,” added the export sector leader.

Under the EU-GSP+ scheme, the Philippines can now export more than 6,000 products to any of the 28 member countries of the EU at zero tariff.

According to the Department of Trade and Industry Export Marketing Bureau (DTI-EMB), the sectors which will benefit the most from this scheme are prepared foodstuff, garments, textile products, live animals and animal products, footwear, headwear and umbrellas.