EU now top destination for Philippine exports

By Pia Lee-Brago (The Philippine Star), May 16, 2017

MANILA, Philippines – Despite President Duterte’s series of expletives against the regional grouping, the European Union was the largest destination of exports from the Philippines with $901 million in March this year, latest data the Philippine Statistics Authority (PSA) showed.

The EU overtook the United States and Japan in March, making the EU largest exporting partner of the Philippines that month.

In the first quarter, Philippine exports to the EU consist 15.5 percent of total, a growth of 48.3 percent, making the EU the biggest and fastest growing export market for Philippine goods.

Growth was triggered by a number of factors, primarily strong growth of and demand in the EU economy (+1.9 percent); and an uptake of exports of the agri-food sector (overall growth of exports of 33.6 percent) supported by EU’s generous GSP+ trade benefits.

European Union Ambassador Franz Jessen said “this seems to confirm messages I hear in the country of increasing production and EU demand in manufacturing and agri-food products.”

“EU’s trade agenda is one of fair trade and of leaving nobody behind. And even though statistics are indications, these figures surely help the Philippines achieving its inclusive growth agenda,” he said.

Growing trade and investments, Jessen said, is one of the most important features of the EU-Philippines thriving relations.

The EU is the largest foreign investor in the Philippines, providing an estimated 500,000 jobs. Since December 2015, the Philippines is the only ASEAN country to enjoy the concrete benefits of the Special Incentive Arrangement for Sustainable Development and Good Governance, GSP+ status, with duty free exports of 66 percent tariff lines, worth around €1.6 billion in 2016.

“These economic gains help the country not only economically, but also to strengthen implementation of core international conventions on labor rights, environment protection, governance and human rights,” he said.

“We are the largest global market and the leading foreign investor in most parts of the globe,” he added.

He stressed that the EU has achieved this strong position by acting together with one voice on the global stage, by playing a key role in removing barriers to trade as a member of the World Trade Organization, as well as concluding bilateral trade deals with many important partners around the world – such as the recent CETA deal with Canada.