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Philippine garment sector may be hit by EU GSP+ withdrawal
28 Sep '20
1 min read
Pic: Shutterstock
The potential loss of tariff advantages offered by the European Union (EU) to the Philippines could harm garment exports as the European parliament recently asked the European Commission to start the process for temporarily withdrawing the generalised scheme of preferences plus (GSP+) privileges enjoyed by the Philippines, after the government failed to improve the human rights situation.
Philippine Chamber of Commerce and Industry president Benedicto V Yujuico recently told a virtual conference that once the subsidy or the preference is taken out, it means that garment buyers will have to pay 15-20 per cent more. That implies a lot of the garment factories may close and a lot of workers will be out of jobs, he was quoted as saying by a domestic media report.
GSP+ is an incentive agreement under which 6,274 Philippine products enjoy zero-tariff entry to the EU provided the country adheres to 27 core international conventions that include human and labour rights, environmental protection and good governance.
Philippine Chamber of Commerce and Industry president Benedicto V Yujuico recently told a virtual conference that once the subsidy or the preference is taken out, it means that garment buyers will have to pay 15-20 per cent more. That implies a lot of the garment factories may close and a lot of workers will be out of jobs, he was quoted as saying by a domestic media report.
GSP+ is an incentive agreement under which 6,274 Philippine products enjoy zero-tariff entry to the EU provided the country adheres to 27 core international conventions that include human and labour rights, environmental protection and good governance.
Fibre2Fashion News Desk (DS)
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