DTI team to head to Brussels for GSP+ application

The Department of Trade and Industry (DTI) will send a team to Brussels this month to work on the Philippines' application to the European Union's Generalized Scheme of Preferences Plus (GSP+), which would entitle exporters to more tariff reductions, a Trade official said over the weekend.

Trade Undersecretary Adrian Cristobal, Jr., who will head the Brussels-bound team, said that the department had earlier aimed to apply for the EU GSP+ in October, but will file it this month instead as it is still waiting for the President's approval of the application.

“With this slight delay, we're still hoping that before the first semester of next year ends, we would have already qualified. But then again, the EU procedures state that it would take six to 10 months to evaluate each application,” said Cristobal. “We are [also] assuming there are also several countries applying for this GSP+ privilege, but we will exert all our efforts to fast-track this application.”

The Philippines currently benefits from the regular GSP, under which 3,767 products are subject to lower tariffs and 2,442 products are subject to zero duty. In 2012, Philippine exports to EU countries under the regular GSP were valued at €1.076 billion.

The GSP+ would increase the number of products that can enter the European Union at zero duty to 6,274.

Cristobal said that an initial DTI study finds that under the GSP+, Philippine exports would increase by €611.8 million and lead to the creation of 200,000 jobs in the Philippines, especially in the agricultural and manufacturing sectors.

The team will also discuss a planned free trade agreement with the EU and with the European Free Trade Association (EFTA), which is comprised of Iceland, Liechtenstein, Norway and Switzerland. — BM, GMA News