The Philippine garment industry is bracing up to request the European Commission not to consider calls for the country to lose its generalised scheme of preferences plus (GSP plus) access to the European Union (EU) markets.
The call followed a resolution adopted by the European Parliament in late September calling on the Commission to temporarily withdraw the Philippines’ access from the scheme due to human rights abuses.The Philippine garment industry is bracing up to request the European Commission not to consider calls for withdrawing the country's GSP plus access to the EU markets. The call followed a late September European Parliament resolution calling on the Commission to temporarily withdraw the Philippines' access from the scheme due to human rights abuses.#
Robert Young, trustee for the textiles, yarns and fabrics sector of the Philippine Exporters Confederation Inc. (Philexport) and the president of the Foreign Buyers Association of the Philippines (Fobap) said the clothing sector would resist a loss of GSP+ status.
The trade body is planning an official communication to the Commission, which would have to propose such a move. FOBAP will also request an easing of origin rules that have prevented the Philippine clothing sector from making the most of this trade status, Young said.
The industry lacks local backward linkages, preventing it from purchasing enough fabrics and yarns locally that will help qualify it for GSP+ privileges, according to media reports from the country.
“It is heartbreaking to see that garment-makers have no way of replacing imported inputs with locally made inputs and we are thus preparing a petition for the EU Commission,” added Young.
The GSP plus program grants the Philippines the benefit of exporting more than 6,000 products to any of the 27-EU member countries at zero tariff. Products on the list include textiles, garments, headwear, footwear, furniture and chemicals.
Fibre2Fashion News Desk (DS)