The Department of Trade and Industry (DTI) said it would  push at the minimum the carryover of benefits that Filipino exports currently enjoy under the EU Generalized Scheme of Preferences Plus (EU-GSP+) into the proposed free trade agreement with EU.

“We will ask for the inclusion of the EU-GSP benefits to be carried over to the FTA, all those enjoying export benefits,” said DTI Secretary Alfredo E. Pascual during a press conference held a day after both the EU and Philippines announced the resumption of discussions for the bilateral FTA.

There are 6,270 goods from the Philippines that enter the EU zero-duty under the EU-GSP+.

Initially, Pascual cited important sectors such as garments, processing, agriculture, fisheries, which depend heavily on the concessions available from the GSP+, for more permanent arrangement under the FTA.

There are also other sectors like semiconductors for continued coverage by tariff arrangements under the planned FTA and additional sectors that have increased exports to the EU or those with potential for growth.

While there is an increase export to the EU, Pascual also expects increased importation from EU. “There will be  healthy trade relations, it is a balanced trade relationship,” he added.

DTI Undersecretary and Board of Investments Managing Head Ceferino S. Rodolfo also added market access for garments and agriculture for coverage in the scope, as well as digital trade, sustainable development ad critical minerals.
Currently, Philippine exporters enjoy tariff concessions under the EU GSP+ scheme, which the European Commission decided to recommend to the European Parliament to be rolled over for another four years, from 2024 to 2027. Still, the GSP+ remains timebound.
As the Philippines tracks its growth trajectory of six percent to seven percent annually, the country is expected to attain an upper middle-income status within the next three to four years.
By that time, Pascual said the PH-EU FTA should have been completed and or implemented.
“If the Philippines maintains its upper middle income-income status for three years, our country loses eligibility for the EU GSP scheme. To avoid disrupting the competitiveness of our GSP beneficiaries in the EU market, we need an FTA, a more permanent and robust foundation for our economic relations with the EU, going beyond the time-bound GSP+ coverage currently enjoyed by the Philippines as a lower middle-income country,” said Pascual.
Pascual said the scoping discussion will start sometime next month to complete it before the end of the year. This means the formal negotiation for the FTA could follow suit hopefully by the “start of the new calendar year, 2024.”
Meantime, the German Philippine Chamber of Commerce and Industry (GPCCI) welcomed the announcement by the European Union (EU) to relaunch FTA negotiations with the Philippines.
The decision was made during the visit of European Commission President Ursula von der Leyen to the Philippines from July 31 to August 1, further strengthening the strategic partnership between the EU and the Philippines. The formal negotiations are targeted to relaunch in 2024.

GPCCI President Stefan Schmitz said, “We eagerly look forward to the prospect of the much-awaited EU-PH FTA that will definitely create new opportunities for businesses and drive mutual growth.”

"We are glad to see that the EU and the Philippines taking concrete steps in commencing talks of a sustainable Free Trade Agreement,” said GPCCI Executive Director Christopher Zimmer.

“We look forward to seeing the FTA in motion soon as it benefits many sectors not only from Germany, but also in the EU such as renewable energy, business process outsourcing, manufacturing, and so on,” said GPCCI Senior Vice President Marie Antoniette Mariano.

According to the European Commission, the envisioned comprehensive FTA between the EU and the Philippines aims to encompass ambitious market access commitments, efficient sanitary and phyto-sanitary procedures, and robust protection of intellectual property rights, including Geographical Indicators. Sustainability will be a central focus of the agreement, incorporating stringent and enforceable disciplines on Trade and Sustainable Development (TSD) in line with the Commission's TSD review Communication of June 2022. These provisions will uphold high standards for workers' rights, environmental protection, and the pursuit of ambitious climate goals.