The European Union may withdraw the GSP Plus benefits granted to Philippines because of that country’s violent crackdown on journalists. The withdrawal will weaken Philippines’ textile and garment exports. With GSP Plus conditional on good governance and a solid human rights record, 6,274 Philippine export products, including textiles, garments and footwear, stand to lose their current duty-free access status to the EU.

An instructive indicator in this regard has been the GSP Plus withdrawal from Sri Lanka in 2009. The EU also withdrew the regular GSP scheme from Belarus and Myanmar over violation of labor rights in 2007 and 1997 respectively. Even though GSP Plus utilisation is relatively low among Philippines’ textile and garment makers, the prospect of a withdrawal is undoubtedly unwelcome news in times that are already challenging. In the first four months of the year, textile and garment exports decreased by 46.7 per cent and 27.2 per cent respectively, compared to the year-earlier period, making the sectors among the country’s worst export performers.

Even with GSP it was mainly machinery and agricultural food exports that the Philippines benefited from. Textile and garment makers have struggled with the scheme’s rules of origins as well as with the fact that the Philippines’ wage levels are high relative to its regional peers.