Marcos Urges Quick Reauthorization of US Trade Preferences

Philippine President Ferdinand “Bongbong” Marcos Jr. has made a strong appeal to the United States for the swift reauthorization of the Generalized System of Preferences (GSP), highlighting its crucial role in enhancing economic ties between the two nations. Speaking at a business forum co-hosted by the US-ASEAN Business Council and the US Chamber of Commerce, Marcos emphasized the significance of the GSP, which offers duty-free entry for selected Philippine products into the American market.

The GSP, established in January 1976 under the US Trade Act of 1974, has been a cornerstone of trade policy, designed to promote economic growth in developing countries by encouraging increased trade with the US. This program not only supports the Philippine economy but also fosters deeper economic integration with the US, enhancing mutual benefits.

During his address, Marcos also discussed the broader aspects of Philippines-US relations, stressing that these are grounded not only in security and defense but also in robust economic and cultural connections. He noted the ongoing private sector demand for a Free Trade Agreement (FTA) and a Critical Minerals Agreement with the United States, pointing out the transformative potential of such agreements for job creation, supply chain strengthening, business development, and workforce upskilling.

Moreover, the President remarked on the strong people-to-people ties that bind the two countries, propelled by mutual respect and cultural affinities. He assured continued efforts to connect industries and open the skies for better connectivity.

Despite these ambitions, US Trade Representative Katherine Tai indicated in April 2023 that a bilateral FTA with the Philippines was not currently a priority, as the focus remains on the Indo-Pacific Economic Framework (IPEF). This context sets the stage for ongoing discussions and potential negotiations that could shape future economic relations between the Philippines and the United States.

As Manila prepares to host the 6th Indo-Pacific Business Forum in May, which will bring together business leaders and government officials, the spotlight remains on the Philippines’ strategic role in regional economics and its relationship with major trade partners like the United States and Japan.