Philippine-based enterprises are urged to take advantage of the benefits from trade arrangements with Europe such as the European Union (EU) Generalised Scheme of Preferences Plus (GSP+) and the free trade deal with the European Free Trade Association (EFTA).
In a briefing Friday, Swiss Ambassador to the Philippines Alain Gaschen said although the country’s utilization rate of the Philippines-EFTA free trade agreement (FTA) “maintains stability” amid the pandemic, there is still a big potential for Filipino enterprises in exporting to EFTA countries using the trade pact.
Gaschen added that the Philippines-EFTA trade pact has allowed Manila to have a trade surplus with Iceland, Liechtenstein, Norway, and Switzerland, which was previously a trade deficit.
Big potential for Philippine enterprises is in the agriculture sector, the envoy said.
He said the EFTA nations are now closely working with the Department of Trade and Industry to fine-tune the FTA.
On the other hand, the EFTA’s trade deal with the country increased Nordic countries’ export of seafood to the Philippines to around 40 percent.
Meanwhile, EU Delegation’s first counselor and head of trade and economic affairs Maurizio Cellini said the GSP+ has allowed an estimate of EUR2 billion, or around 25 percent of Philippine exports, to enter the EU market at zero tariffs.
Cellini said that Philippine agri-food products have greatly benefitted from the EU GSP+ trade preference.
He added that the country’s trade with the EU bloc is recovering its pre-pandemic level with the help of the GSP+.
“We are now noticing that the trade figures between the EU and the Philippines are approaching its pre-pandemic levels. This is a positive indication that trade relations between the EU and the Philippines remain strong amidst the global economic crisis,” he said.
The current GSP+ status of the Philippines will expire by end-2023.
Cellini said the EU is updating the current GSP regulation, which will take effect on January 1, 2024.
Source: Philippines News Agency
