The Philippines anticipates a surge in exports to the European Union (EU) as it pursues a free trade agreement (FTA) with the bloc.
Trade and Industry Undersecretary Allan Gepty revealed a Philippine study on the potential FTA suggests a significant opportunity for the country to increase exports, possibly reaching $8.3 billion.
Gepty emphasized the urgency of finalizing the FTA by 2027, as the Philippines is projected to achieve upper middle-income status next year, potentially jeopardizing its preferential trade status under the EU’s Generalized Scheme of Preferences Plus (GSP+).
“It’s crucial to conclude the FTA by 2027 since we’re about to reach upper middle-income status next year. We might lose our GSP+ status,” Gepty said.
The GSP+ program grants the Philippines duty-free access to the EU market for two-thirds of its product categories. Losing preferential treatment could significantly impact Philippine exports to the EU.
The Philippines is seeking tariff elimination on a wide range of products, including agricultural goods, processed food, and industrial products.
Meanwhile, the DTI’s Export Management Bureau (EMB) director, Bianca Sykimte, said during an FTA consultation with the United Arab Emirates (UAE) that the Philippines may accept the UAE’s offer for tariff elimination on 4,621 tariff lines, valued at $519.3 million.
The Philippines will request the UAE to reconsider accelerated terms for 1,717 tariff lines worth $29.9 million, she said.
The Philippines will also reiterate its request for the inclusion of 1,557 tariff lines worth $152.4 million that were excluded by the UAE in its initial offer, Sykimte said.
The UAE is expected to request the Philippines to reconsider its offer on certain products, including mineral oils and fuels, plastics, paper, and flour and starches.
The Philippines’ initial offer covers 995 tariff lines for either tariff elimination or reduction, valued at $912.2 million. This includes both agricultural and industrial products.
