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Removal of GSP+ to affect Philippines economy
The Management Association of the Philippines (MAP) on Tuesday expressed hope the European Union (EU) will not remove the country’s zero-tariff export status.
“We fervently hope that the removal of the GSP (generalized system of preferences plus) by the EU countries will not push through. It will make our products less competitive and will seriously impact several industries. It will increase the number of the unemployed among our countrymen at the time when they most need jobs,” said Management Association of the Philippines (MAP) President Francis Lim in a statement.
“Our economy will suffer more damage, especially given the contraction we are already experiencing with the (coronavirus disease 2019) pandemic,” he said.
The EU Parliament earlier issued a resolution expressing its “deepest concern at the rapidly deteriorating human rights situation in the country under President Rodrigo Duterte.”
The EU parliament warned that it will impose economic sanctions on the Philippines.
The Philippines is one of the beneficiary-countries of the EU GSP+ that grants zero tariffs to 6,274 product lines.
These products include some fish, dairy, fruits, vegetables, coconut oil, coffee, cocoa, tobacco, chemicals, fertilizers, essential oils, soaps, articles of plastics and rubber, articles of wood and leather, apparel, footwear and headgears, ceramic products, glass and glassware, pearls, fine and costume jewelry, furniture, auto and aero parts, ships and boats, electronics and semiconductors, and watches.
Lim is hoping the government and EU will be able to sort out the issue.
“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,” he said.
Trade Secretary Ramon Lopez earlier said in a statement earlier that there is no reason to remove the tax perks, noting that the Philippine government “was able to explain objectively the Philippines’ side on issues that are raised, and we don’t see any reason our GSP+ privilege will be withdrawn.”
Source: https://www.manilatimes.net/2020/09/23/business/business-top/removal-of-gsp-to-affect-ph-economy/770968/