President-elect Donald Trump (AP Photo/Evan Vucci)

Camarines Sur 2nd district Rep. LRay Villafuerte is pushing the leadership of the Department of Trade and Industry (DTI) to “aggressively pursue” the renewal of the preferential duty-free status for local products bound for the United States (US).

Villafuerte said such benefit was granted during the first term of United States (US) President Donald Trump, who by January 2025 will return for his second term.

Villafuerte made this recommendation during the recent Commission on Appointments (CA) hearing on the appointment of Ma. Cristina Aldeguer-Roque as DTI Secretary. 

With Trump’s second term about to start, the Bicol lawmaker said Roque should prioritize lobbying the White House and the US Congress to renew this preferential treatment. He noted that this was previously accorded to the Philippines under the US Generalized System of Preference (GSP) program.

“I think the single biggest act that can impact our country by boosting our export sector on your watch as DTI Secretary is for you to work towards the renewal of the GSP granted by the US government to Philippine exports. Nag-expire na ito kasi nung (This already expired on) Dec. 31, 2020,” Villafuerte told Roque.

“This GSP privilege had granted duty-free status to Philippine exports to the US. So kung ma-renew fully yan ng US Congress, it will boost exports kasi bababa po ang landed costs of our products kasi walang duty,” he added.

(So if that gets fully renewed by the US Congress, it will boost exports because the landed costs of our products will decrease as there will be no duty.)

Villafuerte, who was an entrepreneur before entering public office, said the return of the GSP will help the country “level the playing field”, thus making it more competitive with neighboring nations.

“So kung magawa niyo po yan, i-lobby po niyo yan (So if you can accomplish that, please lobby for it), with the help of Ambassador Babe [Romualdez], magiging malaking bagay po ‘yan (as it will be a big help) in generating employment for our country, and it will make our exports more competitive, particularly of electronics and agricultural products that we export to the US,” he emphasized.

The US GSP, which was established to promote economic growth and development in developing countries, accounted for about 20 percent of Philippine exports to the US between 2018 and 2020. Before the program expired, it reached a total value of $11.208 billion.

At the same time, Villafuerte is also urging Roque to pitch to prospective investors the recently enacted measures that aim to enhance the ease of doing business in the country.

He specifically highlighted the amendatory law to the Retail Trade Liberalization Act (RTLA), which lowered the capital requirement for foreigners who wish to invest in the country.

“When you promote this Act when you go abroad, I think mas maraming investors ang ma-attract, kasi na-lower na yung cap on initial capital requirement, so kayang-kaya na ng foreigners to come here to invest,” the congressman explained.

(I think more investors will be attracted because the cap on the initial capital requirement has been lowered, so foreigners will easily be able to come here to invest.)

Villafuerte likewise pointed out to Roque that the brewing trade conflict between the US and China will make Philippine-made goods more competitive in the American market.

“A lot of American manufacturers now are pulling out of China because of the recent trade conflict between the two countries. We hope that as trade secretary, you can strongly promote the Philippines as an alternative,” he said.

Roque’s appointment as trade secretary was confirmed by the CA on Nov. 28.