New European GSP seen to benefit RP

The next European generalized system of preferences (GSP) would provide additional liberalization for exports of developing countries such as the Philippines, according to EuroCommerce, a group representing the retail, wholesale and international trade sectors in Europe.

“If the aim is to provide incentives to stakeholders to increase trade against the backdrop of preference erosion, the system must be even simpler, easier to apply, more predictable and give traders more legal certainty,” the EuroCommerce said.

The group said that the European GSP should be continued, noting it is a “very important tool for development”.

Without the GSP and the advantage to import duty free, many importers may have opted to place their orders in China rather than less developed countries due to price consideration factor.

The group also underscored the need for a well-functioning system that is part of the Millennium Development Goals.

EuroCommerce believed that the EU GSP could contribute to the reduction of poverty in developing countries by generating revenue through international trade and giving support to sustainable development and good governance. (EHL)