Doing Business with the EU

The role of GSP+

Usapang Export
Export Marketing Bureau, DTI
4 December 2015
Walter van Hattum
EU Delegation Manila

MESSAGES
1. The EU is going strong crisis is behind us
2. EU-Philippines: relationship is underutilised trade and investments could easily double
3. GSP+ is a good instrument to take advantage of
while also pursuing other (trade policy) options
4. For government, continued economic reforms
will benefit the Filipino people
5. You are the driver of these reforms and future
prosperity of the country

CONTENTS
1.
2.
3.
4.

The EU how are we today?

EU PH relations: stronger, but
GSP+ - the opportunities
What can you do?

EU GDP - GROWTH

BUDGET DEFICIT

ECONOMIC SENTIMENT

CONSUMPTION

UNEMPLOYMENT

INFLATION

CONTENTS
1.
2.
3.
4.

The EU how are we today?

EU PH relations: stronger, but
GSP+ - the opportunities
What can you do?

EU PH TRADE MORE IMPORTANT

Source: PSA

EU PH TRADE MORE IMPORTANT

Trade volume between the EU-28 and PH in 2014
Source: Eurostat

EU PH TRADE MORE IMPORTANT

Trade in Services

BUT POTENTIAL IS MUCH BIGGER!

14

EU LARGEST INVESTOR IN PH
EU Outward Stock to the PH (M)

PH Approved FDI, 2014

BUT POTENTIAL IS MUCH BIGGER!

Stock of EU FDI in selected ASEAN Member-States, 2013
Source: Eurostat
100
90
80

Euro, Billions

70
60
50
40
30
20
10
0
Singapore

Indonesia

Malaysia

Thailand

Philippines

CONTENTS
1.
2.
3.
4.

The EU how are we today?

EU PH relations: stronger, but
GSP+ - the opportunities
Current reforms in the Philippines why
important?

WHAT IS GSP?
The EU's Generalised Scheme of Preferences
(GSP), created following UNCTAD in 1971,
helps developing countries to export to the EU.
In the form of reduced tariffs for goods when
entering the EU market.
Through the additional export revenue, the GSP
fosters growth in income, economic growth
and job creation.

WHAT IS THE '+' IN GSP+?

Special Incentive for Sustainable Development
and Good Governance: zero duties for 66% tariff
lines, both sensitive and non-sensitive duty-free
Conditional: 27 conventions
Binding commitment to ratify conventions, to
accept monitoring, and to cooperate
To accept without reservations conventions'
reporting requirements
No serious problems of implementation

WHAT ARE THE BENEFITS OF GSP?

GSP arrangement - duty reductions for ca.
66% of all EU tariff lines for beneficiaries.

Brunei, Malaysia, Thailand lost GSP treatment

Indonesia, Vietnam remain beneficiaries

"GSP+" - zero duties for 66% tariff lines

Philippines

Everything But Arms, or "EBA" for LeastDeveloped Countries - full duty-free, quotafree access for all except arms (99.8% lines) .

Cambodia, Laos, Myanmar remain beneficiaries

EXAMPLES OF POTENTIAL
Less than 5%
coconut oil

More than 5%
garments: 5%-9.6%
Preserved fruits: 6.1%-9.5%
Plant products, mixed fruits,
confectionery products, biscuits,
non-alcoholic beverages, nets,
woven fabrics: 5%-7.4%

EU Weighted Average Tariff

2.8%

EXAMPLES OF POTENTIAL:
Products with relatively high duties before:
Products

Pineapple products

Duties

14.1% - 17.3%

Bicycles

10.5%

Fish fillet

14.5%

Footwear

11.9%

Tuna

20.5%

Sardines

21.5%

Pineapple juice

28.5%

Fruit jams/jellies

20.5%

DOES GSP+ WORK ALREADY? YES!

DOES GSP+ WORK ALREADY? YES!

PH TRADE: HELP DIVERSIFY

PH TRADE: HELP ADD VALUE

DOES GSP+ WORK ALREADY??

DOES GSP+ WORK ALREADY?

2014 - H1 2015 - H1 % growth % of total
PH Export to EU
2,711
3,336
23.1%
100%
vegetable products
63
89
42.0%
2.3%
foodstuff
134
173
29.2%
4.9%
footwear
5
9
59.3%
0.2%
pearls, etc
17
27
58.4%
0.6%
textiles
101
117
16.4%
3.7%

ATTRACT MORE FDI THROUGH GSP+

Visit to CS
Garment by EU
ambassadors and
DTI Secretary
Domingo

+ 40% staff recruiting

CONSIDER ADDING VALUE PH GIs -

CONSIDER (M)SMEs in VALUE CHAIN

CONTENTS
1.
2.
3.
4.

The EU how are we today?

EU PH relations: stronger, but
GSP+ - the opportunities
What can you do?

WHAT CAN YOU DO?

Invest in sectors that provide opportunities,
above those with easy tariff gains
Be informed of your benefits
Advocate your government
support PH reform process
Invest in the EU
Liaise with industry
Choose smart you are the country's future

KNOW YOUR BENEFITS!

http://exporthelp.europa.eu/thdapp/index.htm

PH INVESTS IN THE EU TOO!

THANK YOU
http://ec.europa.eu/trade/index_en.htm
http://eeas.europa.eu/delegations/philippines
QUESTIONS?
Walter.van-Hattum@eeas.europa.eu