Euro group elated over extended perks

The European Chamber of Commerce of the Philippines on Thursday welcomed the recent positive developments regarding the extension of the European Union Generalized Scheme of Preferences Plus, or GSP+, for the Philippines.

"We appreciate the European Parliament supporting the European Commission's proposal to renew the scheme for another four years.

The ECCP has strongly advocated for the GSP+ renewal since many European and Filipino firms are benefiting from this scheme," the ECCP said in a statement.

Meanwhile, Trade Secretary Alfredo Pascual, also on Thursday, said the EU's Fourth GSP Report, released on Tuesday, recognized the important strides made by the Philippines' current administration and its commitment to GSP+ compliance.

Pascual emphasized that the constructive dialogues within the GSP+ framework paved the way for the Philippines to address points of concern.

Beneficial for all

"The EU GSP+ is beneficial both for the Philippines and the EU in driving inclusive growth and sustainable development. In 2022, PH products worth EUR 2.93 billion were exported to the EU using GSP+ rates, achieving a utilization rate of 77 percent, the highest recorded by the Philippines," Secretary Pascual said.

Further, Pascual highlighted that the EU GSP+ promotes good governance and sustainable development by facilitating trade and provides the Philippines with zero-rated or preferential tariffs on nearly 66 percent of tariff lines, significantly enhancing the country's export capabilities to the EU market.

The Philippines is the largest GSP+ country by gross domestic product and the second largest exporter to the EU among the GSP+ beneficiary countries.

Key Philippine exports, such as processed tuna, coconut products, canned pineapples, garments, and footwear, benefit from GSP+ concessions, enabling wider access to the EU market.

He also welcomed the recent decision by the European Parliament and the Council to extend the current GSP for an additional four years, or until 2027.

Further, Pascual recognized the evident impact of GSP+ on Philippines-EU bilateral trade.

He shared that the country's exports to the EU reached a total trade volume of 15.231 billion euro in 2022.