GSP facilities and Free Trade Agreements in The Philippines

The Generalized Scheme of Preferences (GSP) provides exporters with reduced or zero duties when exporting seafood products. The Philippines benefits from GSP from a number of countries, including all member states of the European Union, the United States and Japan. The EU market Under the original GSP agreement with the EU, the Philippines was able to export 2,442 products to the EU duty-free and reduced tariffs were applied to a further 3,767 products. For seafood products this meant a reduction in tariff from 14% to 10.5%. This GSP agreement ended in December 2014. The EU officially granted the Philippines’ request for inclusion in the General System of Preferences Plus (GSP+) which went into effect on December 25, 2014. Under the new agreement the country is allowed to export around 6,200 products without tariff. This tariff exemption includes most seafood products and has been a major boost for the country’s seafood industry, especially for the country’s tuna sector. The US market The United States of America and the Philippines have had a very close trade relationship since previous colonial days which is expressed in the Trade and Investment Framework Agreement (TIFA) that was signed in November 1989. Several additional agreements are part of the TIFA agreement, including a customs administration and trade facilitation protocol (2010), a memorandum of understanding to cooperate on halting illegal transshipments of textiles (2006) and finally a memorandum of understanding regarding the implementation of minimum access commitments by the Philippines (1998). The Japanese market The Japanese GSP started on August 1, 1971, and the current scheme is effective until March 31, 2021. The preferential scheme includes 337 different seafood items. For aof all seafood products included in the agreement please see: http://www.mofa.go.jp/policy/economy/gsp/product.pdf

Free Trade Agreements

The Philippines is part of a number of free trade agreements of which eight are signed and in effect, and three more have been approved but are still pending.
  • Philippines-Japan Economic Partnership Agreement (PJEPA) Pending
  • Philippines – USA Trade and Investment Framework Agreement Signed and In Effect
  • Philippines – FTA Agreement (with Iceland, Liechtenstein, Norway and Switzerland) Pending
  • ASEAN-Hong Kong, China Free Trade Agreement Pending
  • Regional Comprehensive Economic Partnership Pending
  • ASEAN Free Trade Area Signed and In Effect
  • ASEAN-Australia and New Zealand Free Trade Agreement Signed and In Effect
  • ASEAN-India Comprehensive Economic Cooperation Agreement Signed and In Effect
  • ASEAN-Japan Comprehensive Economic Partnership Signed and In Effect
  • ASEAN-People’s Republic of China Comprehensive Economic Cooperation Agreement Signed and In Effect
  • ASEAN-[Republic of] Korea Comprehensive Economic Cooperation Agreement Signed and In Effect

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