The Department of Trade and Industry (DTI) welcomes the European Union Commission’s proposal to extend the EU Generalised Scheme of Preferences (GSP) for an additional four years.
DTI Secretary Fred Pascual was in Brussels last week as part of the Europe Investment Roadshow organized by the Board of Investments (BOI) and the Philippine Trade and Investment Centers (PTICs) in Europe.
During Brussels leg of the roadshow, Secretary Pascual met with key European Union (EU) officials to discuss the renewal of the EU GSP Scheme, which is set to expire in December 2023. The proposed extension comes at an opportune time and is expected to open a multitude of opportunities for the Philippines.
The GSP is a preferential trade arrangement that grants developing countries, including the Philippines, reduced or zero tariffs on exports to the EU market. With the proposed extension until December 2027, Philippine exporters can continue to benefit from enhanced market access and reduced trade barriers when exporting their products to EU member states.
Further, Secretary Pascual expressed optimism about the potential opportunities that the GSP extension brings. “The GSP extension is a significant boost for our exporters. It will enable them to maintain their competitive edge in the EU market and expand their trade volumes. This development reinforces our commitment to strengthen our trade relations with the European Union.”
The EU is one of the Philippines’ largest trading partners, and the GSP plays a crucial role in facilitating trade between the two regions. The extension of the GSP will provide stability and predictability for Philippine businesses, allowing them to plan and invest for the long term. It also serves as an incentive for European companies to explore partnerships and invest in the Philippine market, fostering economic growth and facilitating employment generation.
The DTI, in collaboration with other relevant government agencies, will actively engage with Philippine exporters and provide support in maximizing the benefits of the GSP extension. Secretary Pascual also emphasized the importance of raising awareness among local businesses about the GSP scheme and its potential advantages. Furthermore, he said that the DTI will work closely with the EU to ensure a smooth transition and effective implementation of the extended GSP.
“With the extension of the GSP, it opens up tremendous opportunity for the Philippines to strengthen trade relations with the EU. We will seize this opportunity and work toward maximizing the benefits for our exporters and the overall economic development of our country,” Secretary Pascual concluded.
The DTI is committed to fostering a business-friendly environment and creating avenues for Philippine exporters to thrive in the global market. With the proposed extension of the GSP, the Philippines is poised to tap into new opportunities, expand its export capabilities, and further enhance its economic ties with the European Union.