GSP boosts PH, EU trade ties 

Department of Trade and Industry Secretary Alfredo Pascual underscored the Philippine-European Union economic relations by emphasizing the importance of EU-GSP (European Union-Generalized Scheme of Preferences Plus), according to a report by Manila Times.

On February 22, Pascual met with representatives from the European Parliament Subcommittee on Human Rights, where he emphasized the importance of the GSP to further strengthen the economic relations.

"We just highlighted that the EU is one of the major trading partners of the Philippines as well as a major source of foreign direct investments," Pascual said.

He also stressed out during the meeting the recent economic developments in the country %u2015 7.6-percent increase in gross domestic product (GDP) growth, sustained manufacturing purchasing managers' index and the Senate concurrence on the Regional Comprehensive Economic Partnership (RCEP) agreement ratification %u2015 and the recent economic reforms and investment liberalization efforts undertaken by the country.

"Twenty-six percent of Philippine exports depend on EU-GSP ," Pascual stressed.

Last week, Pascual and the European Chamber of Commerce in the Philippines showed optimism on the free trade agreement with the European Free Trade Agreement "as a key partner in lobbying for the Philippines' retention of the EU-GSP beyond 2023," Pascual added.

"The Philippines has been the only Asean country to benefit from the EU-GSP since 2014," Pascual said last week. Asean is the Association of Southeast Asian Nations.

The EU-GSP is set to expire in December 2023. He reaffirmed "we are dedicated to directly engaging the EU's core institutions — the European Commission, European Council and members of the European Parliament — to ensure our GSP status and to reapply in the next GSP scheme."

The EU-GSP is a special incentive arrangement for sustainable development and good governance in the form of zero duties.

According to the Foreign Service Institute, Philippine goods can enter the European market at a lower price, thereby rendering them more competitive. In return, the Philippines must commit to effectively implement 27 international core conventions covering labor rights, human rights, good governance and environmental concerns.