What's Happening?
The agriculture and garment sectors in the Philippines are at risk if the country fails to conclude a free trade agreement (FTA) with the European Union before the expiration of the Generalized Scheme of Preferences Plus (GSP+) in 2027. The ECCP highlights
that without an FTA, Philippine exporters will lose preferential access to the EU market, impacting key sectors like agri-food, garments, and tuna. The Philippines is currently in talks with the EU to establish an FTA, with negotiations set to continue in Cebu this week.
Why It's Important?
The expiration of the GSP+ and the potential lack of an FTA with the EU could have severe consequences for the Philippine economy. The agriculture and garment sectors, which benefit from zero tariffs under the GSP+, could face increased tariffs, reducing competitiveness and impacting exports. The FTA is crucial for maintaining access to the EU market and driving growth, competitiveness, and sustainability in the Philippines. The situation underscores the importance of timely negotiations to safeguard economic interests and expand trade opportunities.
What's Next?
The Philippines and the EU are set to hold FTA talks in Cebu this week, with the aim of concluding negotiations before the expiration of the GSP+ in 2027. The successful establishment of an FTA would ensure continued access to the EU market and expand trade benefits. The ECCP remains committed to converting the current momentum into a lasting partnership that secures growth for decades to come. The outcome of the negotiations will be crucial in determining the future of the Philippine economy and its integration into global supply chains.
