EU Calls on PH Government to Address Human Rights Issues or Risk Losing GSP+ Access

The European Parliament adopted a resolution on February 17 which could lead the Philippines to temporarily lose its Generalized Scheme of Preferences Plus (GSP+) if the government does not address rampant violence and human rights violations in the country. Despite this, economists remain firm that this would not necessarily serve as a significant hindrance to economic recovery.

“The EU is an important trade and economic partner, but the Philippines has other partners that do not share EU’s point of view. I don’t believe that EU by itself can derail the impending economic resurgence of the country,” explained Cid Terosa, Senior Economist at the University of Asia and the Pacific.

As a GSP+ beneficiary, the Philippines is allowed special incentives and zero tariffs on 6,200 products. However, the country is required to comply with 27 core international conventions which include regulating worker rights, illegal fishing, and environmental protection. The trade agreement was enforced in January 2014, and it is set to last until the end of 2023.

“For several years now, domestic forces have driven the economy forward and cushioned the impact of external fluctuations on the Philippine economy. External forces have played second fiddle to the power of the domestic market,” maintained Terosa, noting that the external pressure is incompatible with the country’s sovereign right to manage its internal affairs.

“I wouldn’t say it will stall our economic recovery but it would reduce our exports and lower our investment prospects,” echoed Calixto Chikiamco, President of the Foundation for Economic Freedom. Also expressed in the EU resolution was the urge for the Philippine government to amend the Anti-Terrorism Act (Republic Act No. 11479) to fall in line with international standards on counter-terrorism.

Trade Secretary Ramon Lopez attests, however, that the EU’s allegations of the Philippines’ failure to comply with its human rights obligations are “fake news,” putting the country in a bad light. “While it is not new, their allegations on human rights and lack of press freedom are fake news, and those only give false impressions on the real situation in the Philippines.  They should visit our beautiful country.”

“They should ask the Filipinos in their companies or communities.  They should also ask the EU citizens (and) the EU business chambers in the country,” affirmed Lopez. “The Philippines has been very cooperative with the EU and has repeatedly addressed these concerns in existing dialogue mechanisms. The Philippines remains compliant with the 27 international core conventions on human rights, labor, environment, and good governance to enjoy GSP+ treatment.”

Trade Justice Pilipinas co-convenor Joseph Purugganan, on the other hand, believes that the EU’s scrutiny is not baseless. “We support strongly the demand… to initiate withdrawal procedures for GSP+ trade preferences to the Philippines. Our position is that the Duterte government, by failing to act on the human rights situation and failure to comply with the obligations under the GSP+ program, has forfeited these preferences. The blame falls squarely on the government.”

Nonetheless, the GSP+ has been relevant in assisting the country’s exports to the EU which have been valued at 1.6 billion euros in 2020 under a utilization rate of 75% on eligible exports. Likewise, it helps micro, small, and medium enterprises (MSMEs), fisherfolk, farmers, and workers that fall within the export value chain. A GSP+ monitoring mission is also expected to evaluate the Philippines towards the end of the month.

Source: BusinessWorld