RP to enjoy preferential access to EU market
Pia Lee-Brago
Philippine Star
The European Union (EU) has adopted a new regulation on its Generalized System of Preferences (GSP) scheme that will allow 176 developing countries, including the Philippines, to continue enjoying preferential access to the EU market.
With the new GSP scheme that covers the period from 2009 to 2011, Ambassador Alistair MacDonald, head of the European Commission (EC) Delegation in Manila, said “the Philippines will continue to benefit from either reduced-duty or duty-free entry for many products, and no sector will be graduated from GSP for the Philippines from 2009-2011.”
EU Trade Commissioner Peter Mandelson said “the continuation of GSP will ensure stability and predictability for beneficiaries and traders in the EU and developing countries. GSP is a vital tool of our pro-development EU trade policy.”
In response to requests by users of GSP to ensure continued stability, predictability and transparency, the scheme remains broadly unchanged.
The Philippines is among the top 20 users of the EU GSP scheme, from which it benefits under the general arrangements. Philippine GSP exports stood at 862 million euros in 2007, up by nine percent from the previous year, the highest recorded since 1998.
The average utilization rate has also improved to 56 percent in 2007 from 44 percent in 1998, and is now above the global average.
Of the 5.6 billion euros total Philippine exports to the EU in 2007, about 16 percent benefited from GSP.
Based on recent GSP export performance, preferences for specific product groups will be restored (degraduation) for six beneficiary countries of GSP – Algeria (mineral products), India (jewelry, pearls, precious metals and stones), Indonesia (wood and articles of wood), Russia (chemicals and base metals), South Africa (transport equipment) and Thailand (transport equipment).
On the other hand, preferences for specific product groups will be suspended (graduation) for Vietnam, for footwear, headgear, umbrellas, sun umbrellas, artificial flowers and some other products.
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