Source: Business Mirror
The Philippines is hoping to expand the preferential trade access of its exporters to Europe by hurdling the requirements set by the European Commission (EC) on good government and sustainable development for country-beneficiaries.
Trade Undersecretary Adrian Cristobal Jr. said on Monday that the country’s trade office in Brussels has informed them that the Philippines has a good chance of qualifying for the Generalized System of Preferences (GSP) + scheme of the European Union (EU), along with Pakistan and Ukraine.
“Our trade office in Brussels met with industry groups and multinational companies in Europe that welcomed the news that the Philippines may qualify for the GSP+. We are determined to take advantage of this opportunity and have instructed our trade office to work closely and coordinate with the GSP desk of the EU Commission Directorate General for Trade to expedite our application,†Cristobal added.
Some Philippine exports to Europe are already enjoying lower duties under the regular GSP program of the EU. Canned tuna imported from the Philippines is current subject to a duty rate of 24%. If the tuna has been caught by local Philippine flagged vessels a duty of 20.5% can be applied. In case of the GSP+ the duty rate would be reduced to zero, and Philippines would enjoy the same duty advantages as Papua New Guinea.
Under the regular GSP, non-sensitive products are duty-free, while sensitive products get a cut of 3.5 percentage points from the MFN (most-favored nation) duties. So in the case of canned tuna, which is a sensitive product, this is 24%, with a cut of 3.5% if it is local fished tuna raw material.
If the country qualifies for the GSP+ scheme, Philippine products, be they classified sensitive or non-sensitive, would generally enjoy duty-free access to the EU.
Requirements were set, however, by the EC for enjoyment of this privilege.
First, the country is still not classified by the World Bank as a high-income country. Second, its five largest GSP-covered export products to the EU should be more than 75 percent of its total GSP-covered exports. Third, the country’s GSP-covered exports to the EU represent less than 1 percent of the European Union’s total GSP imports.
Aside from these criteria that measure a country’s vulnerability, the GSP+ scheme can only be availed of if the Philippines has complied with a list of international standards and agreements on human rights and the environment, among other areas.
It listed 16 conventions relating to core political, human and labor rights including: International Convention on Civil and Political Rights; International Convention on Economic, Social and Cultural Rights; International Convention on the Elimination of All Forms of Racial Discrimination; Convention on the Elimination of All Forms of Discrimination against Women; Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; Convention on the Rights of the Child; Convention on the Prevention and Punishment of the Crime of Genocide;
Convention Concerning Minimum Age for Admission to Employment (No. 138); Convention Concerning the Prohibition and Immediate Action for the Elimination of the Worst Form of Child Labor (No. 182); Convention Concerning the Abolition of Forced Labor (No. 105); Convention Concerning Forced or Compulsory Labor (No. 29); Convention Concerning Equal Remuneration for Men and Women Workers for Work of Equal Value (No. 100); Convention Concerning Discrimination in Respect of Employment and Occupation (No. 111);
Convention Concerning Freedom of Association and Protection of the Right to Organize (No. 87); Convention Concerning the Application of the Principles of the Right to Organize and to Bargain Collectively (No. 98); and International Convention on the Suppression and Punishment of the Crime of Apartheid.
There are also 11 conventions on the environment, good governance and the fight against drug production and trafficking, such as the Montreal Protocol on Substances that Deplete the Ozone Layer; Basel Convention on the Control of Transboundary Movement of Hazardous Wastes and Their Disposal; Stockholm Convention on Persistent Organic Pollutants; Convention on International Trade in Endangered Species of Wild Fauna and Flora; Convention on Biological Diversity; Cartagena Protocol on Biosafety; Kyoto Protocol to the United Nations Framework Convention on Climate Change; United Nations Single Convention on Narcotic Drugs (1961); United Nations Convention on Psychotropic Substances (1971); United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (988) and United Nations Convention against Corruption (Mexico).
The Philippine government must also make a commitment that it will support implementation of these conventions and accept regular monitoring of compliance.
Cristobal said some examples of non-sensitive products are mineral products, chemicals, imitation jewelry, select electrical and electronic products, furniture, toys and games and select agriculture products such as canned pineapples.
Sensitive products include agriculture products such as prepared food like canned tuna, shrimps and prawns, raw materials as coffee, vegetable fats and oils like coconut oil, preserved or, tobacco products, plastic products, garments, travel goods, footwear, some semi-conductor devices, articles of wood such as doors and their frames or those that affect the EU economy through direct competition.
Eurostat data showed GSP utilization of the Philippines in 2011 in agriculture products (76.2 percent in 2011 from 63.9 percent in 2010) and industrial products (60.8 percent in 2011 from 62.2 percent in 2010).