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UK-Philippines trade status quo to continue post-Brexit —envoy
The status quo in trading relations between the Philippines and the United Kingdom will remain for the medium term, despite the UK's departure from the European Union.
According to UK Prime Minister's Trade Envoy to the Philippines Richard Graham, the Philippines and the UK will continue to implement trading agreements under the Generalized System of Preferences Plus (GSP+).
"Because we have trading relationships at the moment under that's called GSP+ which facilitates all trade between the EU and the Philippines, we will roll that over on the 31st of December," he explained.
"It's rebranded as UKGSP, but it will be exactly the same, so business as usual," Graham told reporters in Makati City.
GSP+ is a tariff mechanism that gives developing countries—including the Philippines—the privilege of exporting zero-duty merchandise to EU-member states. In the Philippines alone, the GSP+ covers 6,274 locally made products.
Graham's remarks come as the United Kingdom finalized its departure from the European Union last month, ending 47 years of union with Europe.
"Over time, the Ambassador and his team will be able to review this with [Trade Secretary] Mon Lopez and his team and see if there are opportunities to improve this and to tailor the existing arrangements for the UK and Philippines," said Graham.
Among the possible agreements is liberalizing further the entry of agriculture produce from the Philippines into the UK.
"Some countries in Europe are a bit more protective to the agriculture side because in the south of Europe, some of them have similar fruits and products to the Philippines, but we don't so it may be easier of us to be more open to the Philippines on that side," Graham said.
The majority of the exports of the Philippines to the UK cover agricultural goods such as tuna, pineapples, and coconut products.
Meanwhile, the UK exports mainly aerospace, technology, automotives, and consumer goods to the Philippines.
"We might want a bit more access to the services side or in other sectors, but that will be for what I'd call the medium term. And then beyond that is the opportunity for a free trade agreement between the UK and the Philippines," said Graham. — BM, GMA News
