EU retains Philippines’ GSP+ privileges

Rodney N. Artida | January 24, 2018

Photo from ibtimes.com

Despite concerns over human rights abuses in the country’s campaign against illegal drugs, the Philippines managed to retain its duty-free privileges under the European Union’s (EU) Generalized Scheme of Preferences Plus (GSP+).

GSP+ beneficiaries export around 66 percent of annual exports in the EU tariff free in exchange of their commitment in implementing the 27 conventions covering human rights, labor rights good governance and environmental concerns.

For the Philippines, its GSP+ status permits the country to export 6,274 eligible products duty-free to the EU market.

The European Commission and the European External Action Service adopted its second biennial GSP report which highlighted the country’s progress in areas such as gender equality, trafficking in persons, labor rights, health, education, socio-economic rights, fight against corruption, and protection of the environment.

However, the trade bloc expressed grave concern on the issues of alleged extra judicial killings and lack of due process and restraint during law-enforcement operations in particular in the fight against illegal drugs. The EU also raised serious concern over the possible reintroduction of the death penalty and the lowering of the age of criminal responsibility in the country.

“Together with statements by the President that can be seen as incitement to killings and fostering a culture of impunity, the conduct of the war on drugs raises serious questions about the government’s commitment to human rights,” the EC said.

Meanwhile, the EU recognized the improvements in fighting red tape and corruption as well as progress in environmental protection through the ratification of Paris Climate Agreement.

“With regard to the fight against corruption, the Philippines is addressing the challenges it is faced with through improvements of the government bureaucracy, including freedom of information and customs,” it said.

The commission also noted the government’s effort towards labor rights, addressing the “endo” scheme through its socio-economic plan and it’s ensuring the implementation of labor standards in the Philippines.

“The government’s socio-economic plan addresses some of the pertinent labor issues and has ended the practice of repeated hiring of workers on five-month contracts to avoid the obligation to regularize their employment status, the so called ‘endo’ scheme,” the report said.

The EC further stressed that the labor legislation should be support and adopt the International Labor Organization Convention 87 on freedom of association.

According to Trade Secretary Ramon M. Lopez, Philippine exports with EU grew by 31 percent last year despite the exchange of spats between the 28-member bloc and the Duterte administration over human rights. The 31 percent amounted to 8.4 billion US Dollars, making the EU the third largest trading partner of the country.

Specifically, the exports include food and agricultural products such as fruits, fish and other marine products and prepared foods. Apart from that the automotive parts, leather, textile and footwear also experienced growth due to the GSP+.