eu-philippine trade

7/25/2019 EU-Philippine Trade

1/36

Doing Business with the EUThe role of GSP+

Usapang Export

Export Marketing Bureau, DTI

4 December 2015

Walter van HattumEU Delegation Manila


2/36

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 ofwhile also pursuing other (trade policy) options

4. For government, continued economic reformswill benefit the Filipino people

5. You are the driver of these reforms and futureprosperity of the country


3/36

CONTENTS

1. The EU how are we today?2. EU PH relations: stronger, but

3. GSP+ - the opportunities

4. What can you do?


4/36

EU GDP - GROWTH


5/36

BUDGET DEFICIT


6/36

ECONOMIC SENTIMENT


7/36

CONSUMPTION


8/36

UNEMPLOYMENT


9/36

INFLATION


10/36

CONTENTS

1. The EU how are we today?2. EU PH relations: stronger, but


4. What can you do?


11/36

EU PH TRADE MORE IMPORTANT

Source: PSA


12/36


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


13/36


Trade in Services


14/36

BUT POTENTIAL IS MUCH BIGGER!

14


15/36

EU LARGEST INVESTOR IN PH

PH Approved FDI, 2014EU Outward Stock to the PH (M)


16/36

BUT POTENTIAL IS MUCH BIGGER!

0

10

20

30

40

50

60

70

80

90

100

Singapore Indonesia Malaysia Thailand Philippines

Euro,

Billions

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


17/36

CONTENTS

1. The EU how are we today?

2. EU PH relations: stronger, but


4. Current reforms in the Philippines why

important?


18/36

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 whenentering the EU market.

Through the additional export revenue, the GSPfosters growth in income, economic growthand job creation.


19/36

WHAT IS THE '+' IN GSP+?

Special Incentive for Sustainable Developmentand 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


20/36

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 Least-Developed Countries - full duty-free, quota-free access for all except arms (99.8% lines) .

Cambodia, Laos, Myanmar remain beneficiaries


21/36

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%

EXAMPLES OF POTENTIAL

EU Weighted Average Tariff

2.8%


22/36

EXAMPLES OF POTENTIAL:

Products Duties

Pineapple products 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%

Products with relatively high duties before:


23/36

DOES GSP+ WORK ALREADY? YES!


24/36

DOES GSP+ WORK ALREADY? YES!


25/36

PH TRADE: HELP DIVERSIFY


26/36

PH TRADE: HELP ADD VALUE


27/36

DOES GSP+ WORK ALREADY??


28/36

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%


29/36

ATTRACT MORE FDI THROUGH GSP+

Visit to CSGarment by EU

ambassadors andDTI Secretary

Domingo

+ 40% staff recruiting


30/36

CONSIDER ADDING VALUE PH GIs -


31/36

CONSIDER (M)SMEs in VALUE CHAIN


32/36

CONTENTS

1. The EU how are we today?

2. EU PH relations: stronger, but3. GSP+ - the opportunities

4. What can you do?


33/36

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


34/36

KNOW YOUR BENEFITS!

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


35/36

PH INVESTS IN THE EU TOO!


36/36

THANK YOU

http://ec.europa.eu/trade/index_en.htmhttp://eeas.europa.eu/delegations/philippines

QUESTIONS?

[email protected]

eu-philippine trade

Documents