Exports can withstand EU GSP+ loss

By Richmond Mercurio (The Philippine Star), Jan. 19, 2017

MANILA, Philippines – Philippine exports should be able to endure the impact of the country possibly losing its Generalized System of Preferences Plus (GSP+) privileges with the European Union (EU) due to rising cases of alleged extrajudicial killings and plans to bring back the death penalty, a top trade official said.

“It is not really a cause for alarm. Our exports growth targets will not be affected,” Department of Trade and Industry export marketing bureau director Senen Perlada said yesterday.

The government is targeting to breach the $100-billion export revenue mark by 2020 under the revised Philippine Export Development Plan.

Perlada said the impact of losing the EU GSP+ would be felt “depending on the products involved.”

He said among the export products to EU that will likely take the biggest hit are coconut oil and tuna.

“I think we can cope in the sense they are not necessarily the biggest exports we have to the EU. But there will be very specific items that will be affected,” Perlada said.

“Remember that even if we don’t have EU GSP+, we still have the regular EU-GSP wherein there would be less products covered with zero duties,” he added.

Perlada said exports to the EU currently account for 12 percent of total Philippine exports. Of the total Philippine merchandise exports to the EU, he said about 20 to 25 percent are products covered by the EU GSP+.

The Philippines was granted beneficiary country status under the EU-GSP+ in December 2014, allowing the country to export 6,274 eligible products duty-free to the EU market.

The country’s beneficiary status under the GSP+, however, necessitates the implementation of the 27 international treaties and conventions on human rights, labor rights, environment and governance.

“The distinction between the EU regular GSP and the EU-GSP+ is that the GSP is not bound by 27 conventions. The plus there is the 27 conventions. The plus became more attractive because it covered more products under zero duties that’s why we ratified in early 2014. But they have all the right to withdraw it,” Perlada said.

On Monday, EU Ambassador to the Philippines Franz Jessen said the planned revival of death penalty in the country and the alleged cases of extrajudicial killings are among the considerations in the review of the country’s GSP+ status.

Jessen said the EU is strongly against death penalty. So far, however, he noted nothing has changed on the status of capital punishment in the Philippines.