MANILA — Philippine-based enterprises exporting to the United States stand to benefit from the extension of Generalized System of Preferences (GSP) being pushed by the US Congress, the country’s top trade official said.
On the sidelines of the US-Philippines Investment Forum Tuesday, Department of Trade and Industry (DTI) Secretary Ramon Lopez said a bill was recently passed in the US House of Representatives extending the GSP renewal to three years from the current one year period.
The Philippines is a beneficiary of US GSP, wherein about 70 percent of the country’s exports to US enter the market duty free.
On July 1, 2017, the country’s benefits from the US GSP Program expanded to travel goods, which added 23 new tariff lines under the special trade preference program.
The HR 4979 was introduced to the US House of Representatives on Feb. 8 and was passed on February 14. The bill is now referred to the US Senate.
It amended the renewal of the GSP, extending until Dec. 31, 2020 in Section 505 of the Trade Act of 1974, from the current December 31, 2017.
The bill also pushes for retroactive application of the GSP Program.
“[It will be] easier [to do business], assured of the continuity in policies that it will obviously won’t break the momentum,” Lopez said citing the benefit of the GSP Program extension.
In last year’s meeting of DTI and US Trade Representative (USTR), the country put forward its intention to include footwear under the US GSP Program.
Lopez said if the Philippines would be pushing for more products under the special trade preference program from the US, these would be garments and other agricultural goods.
The DTI chief welcomed this development as the Philippines and the US governments are exploring the potential of having a free trade agreement (FTA).
He expected to “see some great progress” within the next two years to launch deeper discussions and negotiations for US-Philippines FTA.
“We will move to that direction [of[ lower and freer exchange of goods,” Lopez said.
Government data showed that the US was the country’s second top export destination in 2017, only next to Japan.
Philippine exports to US last year reached USD9.16 billion, increasing by 3.5 percent from USD8.85 billion in 2016. (Kris Crismundo/PNA)
