The Duterte administration has been told not to take the threat of the 27-member states of the European Union (EU) to remove the country’s zero tariff privilege on more than 6,000 export products lightly.
In a statement, the Management Association of the Philippines (MAP) warned of dire consequences to the Philippine economy once the EU withdraw the Generalized Scheme of Preferences Plus (GSP Plus) currently being enjoyed by the Philippines. The GSP Plus privileges is a unilateral action o the EU to a trading country based on some conditions that the beneficiary country has to adhere to.
“Our government should not take the matter lightly for the sake of our people. We hope it will be discussed and addressed by both parties in a mutually satisfactory manner,” said MAP President Francis Lim in a statement.
“Our economy will suffer more damage, especially given the contraction we are already experiencing with the pandemic.”
The Philippines is one of the beneficiary countries of the EU GSP+ that grants zero tariffs to 6,274 product lines. These products include particular items of fish, dairy, fruits, vegetables, coconut oils, coffee, cocoa, tobacco, chemicals, fertilizers, essential oils, soaps, articles of plastics and rubber. It is estimated that around 25 percent of total Filipino exports to the EU, approximately 2 billion euros, benefit from the EU GSP Plus Preference, particularly in agricultural and food products.
MAP, however, expressed hope that the removal of the GSP preferences by the EU countries will not push through.
Removal of the zero-tariff privilege will make Philippine products less competitive and will seriously impact on several industries. It will increase the number of the unemployed among Filipinos at the time when they most need jobs.
In a resolution adopted on September 17, the EU Parliament called on the European Commission to immediately initiate the procedure for temporary withdrawal of the GSP+ privileges of the Philippines “given the seriousness of the human rights violations in the country.”
The EU legislative body again expressed “its deepest concern at the rapidly deteriorating human rights situation in the Philippines under President Rodrigo Duterte and calls on the country’s government to implement all the recommendations outlined by the UN High Commissioner for Human Rights to address a range of serious issues, such as the ‘widespread and systematic’ killings related to the authorities’ anti-drug campaign.”
The resolution stated that EU members “strongly denounce the thousands of extrajudicial killings and other serious human rights violations related to the so-called ‘war on drugs’.”
It cited a June 30, 2020 report by the UN High Commissioner for Human Rights, which found “widespread and systematic” killings related to the government’s anti-drug campaign. Official data showed 8,663 people had been killed, but other estimates triple that number, according to the report.
EU lawmakers also “also condemn all threats, harassment, intimidation, rape and violence against those who seek to expose allegations of extrajudicial killings and other human rights violations in the country, including human rights and environmental activists, trade unionists and journalists.”
Since December 2014, the Philippines enjoys enhanced trade preferences with the EU under the EU GSP+. The special incentive arrangement for Sustainable Development and Good Governance GSP+ grants full removal of tariffs on two thirds of all product categories, aiming to support sustainable development and good governance. In order to maintain GSP+, the Philippines is subject to a regular monitoring of its obligation to the effective implementation of 27 core international conventions on human and labor rights, environmental protection and good governance.