Garment manufacturers are returning to Philippines to take advantage of the zero duty export privilege the wealthy 28-member EU countries under the EU GSP Plus program. The zero duty privilege of Philippines under the EU GSP Plus program took effect in mid December last year. This grants zero tariff to over 6,000 product lines from the Philippines. Garment buyers for the EU have been enquiring for possible supply. Buyers and manufacturers are now expected to flock to the country because of the export privilege.
The Philippines expects to increase exports to the EU by 35 per cent and create 2,00,000 jobs as a result of the preferential status. Garments, textile products and footwear are among the top sectors expected to benefit from the GSP upgrade. Hundreds of thousands of jobs are expected to be created in the countryside and specifically in disaster stricken areas.
In the Asean region, which includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, the Philippines is the only EU GSP Plus beneficiary country. With this benefit, Philippines exporters will have better access and comparative advantage in the EU market. The country hopes to become a manufacturing hub for the Asean region.
