US closes Phl country review on GSP

The United States has officially closed its country review of the Philippines with respect to labor rights under the US Generalized System of Preferences (GSP), the Department of Trade and Industry (DTI) said.

The DTI said the US Trade Representative issued a statement indicating the decision to close the review is “based on progress by the Philippine government in addressing worker rights issues in that country, including through reforms of labor laws and regulations.”

“The US acknowledges our initiatives towards creating decent jobs and upholding workers’ rights. The closing of the GSP country review on the Philippines is indeed a major milestone for Philippine trade and labor,” Trade Undersecretary Adrian Cristobal Jr. said.

The DTI said the GSP country review on Philippine labor standards and practices started in 2008 and focused on monitoring the country’s progress on labor-related issues and labor reform legislations.

The US GSP seeks to promote economic growth and development in developing countries through preferential and duty-free entry to the US market of products from 122 designated beneficiary countries and territories, including the Philippines.

It covers a total of 5,000 products or about 47 percent of the 10,600 total US tariff lines.

The DTI, however, said the trade benefits are tied to conditionalities which include intellectual property rights protection, upholding of workers’ rights, and protection against child labor.

“The list of GSP eligible countries and articles may be modified in response to a petition and based on the findings of the annual review,” the DTI said.

Philippine exports under the US GSP reached $1.27 billion in 2013, making it the fifth largest user of the program.

The GSP program includes most dutiable manufactures and semi-manufactures, and selected agricultural, fishery, and primary industrial products.

Products that are prohibited by law from receiving GSP treatment include most textiles, watches, footwear, handbags, luggage, flat goods, work gloves, leather apparel as well as other articles determined to be import-sensitive such as products of steel, glass, and electronics. –Richmond S. Mercurio, Philstar.com