Gatchalian: Renewal of PH participation in EU's GSP Plus to boost exports, improve investments

Senator Win Gatchalian welcomed the proposed renewal of the Philippines' participation in the Generalized Scheme of Preferences Plus (GSP+), saying such development is expected to boost the competitiveness of the country's exports and increase investment prospects.

"We are elated to find out that the European Commission has proposed to renew the country's participation in the GSP+ scheme as this would surely provide a wider market for our exports and consequently greater employment opportunities for our people," said Gatchalian, who was part of the Philippine Congressional Delegation who visited the European Parliament in October 2022 to discuss with their counterparts the status of the GSP+, among other things. He commended the work undertaken by Senator Sonny Angara for leading the delegation.

"I am hopeful that the members of the EU Parliament were able to appreciate our discussions and initiatives towards building strong partnership between the Philippines and the EU and will vote favorably for the European Commission's proposed renewal of the grant of EU GSP+ privileges to the Philippines," he stipulated.

As proposed by the EC, the country's participation in the GSP+ scheme will be allowed for another 4 years or until December 2027 as soon as it expires by the end of this year.

A special incentive arrangement for low and lower-middle-income countries, the GSP+ is a unilateral trade arrangement offering zero tariffs on 6,274 products or 66% of all EU tariff lines. Following its initial participation in 2014, the country's export revenues grew to EUR 7.7 billion in 2021 from EUR 5.7 billion in 2014.

PH exports to the 27 European Union countries (EU27) increased from US$ 6.4 billion in 2020 to US$ 8.6 billion in 2021, attributing to the surge in the exports of crude coconut oil, skipjack tuna, semiconductor devices, and digital monolithic integrated circuits, among other products.

Gatchalian further expressed confidence that the renewal of the Philippines' participation in the GSP+ scheme would further improve the country's investment relations with EU member economies. In 2021, the EU27 was the Philippines' 5th largest trading partner, 6th biggest export market, and the 6th biggest import source.

A considerable source of investments to the country, the EU has contributed around US$ 2 billion in investments from 2017 to the first half of 2022, with an average percentage share of around 10% of the total approved foreign investments in the country. Major contributors include The Netherlands, with a contribution of US$ 1.6 billion, followed by France with US$ 130 million, and Germany with US$ 130 million.

Gatchalian: Pag-renew ng partisipasyon ng PH sa GSP Plus ng EU magpapalakas ng exports, pamumuhunan

Malugod na tinanggap ni Senador Win Gatchalian ang panukalang pag-renew ng partisipasyon ng Pilipinas sa Generalized Scheme of Preferences Plus (GSP+) at sinabing ito ay inaasahang magpapalakas ng exports ng bansa at magpapataas ng pamumuhunan.

"Ako ay nagagalak na malaman na ang European Commission ay iminungkahi na i-renew ang pakikilahok ng bansa sa GSP+ scheme dahil ito ay tiyak na magbibigay ng mas malawak na merkado para sa ating exports at magbibigay ng mga oportunidad sa trabaho para sa marami nating mga kababayan," sabi ni Gatchalian. Siya ay naging bahagi ng Philippine Congressional Delegation na bumisita sa European Parliament noong Oktubre ng nakaraang taon upang talakayin sa kanilang counterparts ang estado ng bansa sa GSP+, bukod sa iba pang mga bagay. Pinasalamatan niya si Senador Sonny Angara na siyang namuno ng delegasyon.

"Ako ay umaasa na ang mga miyembro ng EU Parliament ay mapapahalagahan ang mga napag-usapan namin tungo sa pagbuo ng mas matatag na pakikipagkalakalan sa EU. Ang pagkakaloob ng EU GSP+ ay nagbibigay ng mga pribilehiyo sa Pilipinas," aniya.

Gaya ng iminungkahi ng EC, ang paglahok ng bansa sa GSP+ scheme ay inaasahang mangyayari sa loob ng apat na taon hanggang Disyembre 2027 sa sandaling mag-expire ito sa katapusan ng taong ito.

Ang GSP+ ay isang insentibo para sa mga tinaguriang low and lower-middle income countries. Ito ay isang unilateral trade arrangement na nag-aalok ng zero tariff sa 6,274 na produkto o 66% ng lahat ng EU tariff lines. Ang Pilipinas ay unang lumahok dito noong 2014. Mula sa kita ng exports na EUR 5.7 bilyon noong 2014, lumaki ito sa EUR 7.7 bilyon noong 2021.

Ang kita ng bansa mula sa exports sa 27 European Union na bansa (EU27) ay tumaas sa US$ 8.6 bilyon noong 2021 mula US$ 6.4 bilyon noong 2020. Ito ay nauugnay sa mga produktong tulad ng crude coconut oil. skipjack tuna, semiconductor device, at digital monolithic integrated circuits.

Nagpahayag pa ng kumpiyansa si Gatchalian na ang pag-renew ng partisipasyon ng Pilipinas sa GSP+ scheme ay higit na magpapaunlad sa relasyon ng pamumuhunan ng bansa sa mga miyembrong ekonomiya ng EU. Noong 2021, ang EU27 ang pang limang pinakamalaking trading partner ng Pilipinas, pang anim na pinakamalaking export market, at pang anim na import source.

Ang exports sa EU ay isang malaking investment source ng bansa. May ambag itong nasa $ 2 bilyon mula 2017 hanggang sa unang anim na buwan ng 2022. Kabilang sa mga itinuturing na contributors ng Pilipinas ay ang mga bansang The Netherlands na may kontribusyon na US$ 1.6 bilyon, na sinusundan ng France na may kontribusyong US$ 130 milyon, at Germany na may ambag na US$ 130 milyon.