The Philippines is pushing for a free trade agreement (FTA) with the European Union to protect preferential market access and shield exporters from higher tariffs as the country moves closer to losing eligibility for the EU’s Generalized Scheme of Preferences Plus (GSP+).
Trade Secretary Ma. Cristina Roque said the FTA has become increasingly urgent after the Philippines attained upper-middle-income status, a development that could eventually end its eligibility for the trade scheme.
GSP+ currently gives more than 6,000 Philippine products duty-free access to the EU market.
“We really need the free trade agreement now to really make sure that we transition from the GSP+ to the free trade agreement,” Roque said at a press conference Tuesday.
Trade Undersecretary Allan Gepty said the Philippines would become ineligible for GSP+ if it maintains its upper-middle-income classification for three consecutive years.
Without a replacement agreement, Philippine exports that currently enter the EU duty-free could face tariffs of up to 24%.
But the government said the proposed FTA is aimed at going beyond simply preserving existing trade perks.
“The objective is to really, not just secure those preferential market access that we have been enjoying in the GSP Plus, but to really expand that further,” Gepty said.
The European Commission said the substantially agreed FTA would eliminate or reduce tariffs on more than 94% of tariff lines, covering over 97% of bilateral trade.
The comprehensive deal would also cover services, investment, digital trade, intellectual property, government procurement and customs procedures.
Roque said product-specific concessions remain confidential while negotiations are being finalized. Details will eventually be released to help exporters identify opportunities under the agreement.
The government expects the FTA to bolster export competitiveness, diversify Philippine markets and attract investment, although it has yet to set a specific export-growth target.
