Foreign Trade Policy
GSP+: Duty-free Exports from the Philippines to the EU
The EU's "Generalised Scheme of Preferences" (GSP) allows developing countries to pay less or no duties on their exports to the EU. This gives them vital access to EU markets and contributes to their economic growth.
The Special Incentive Arrangement for Sustainable Development and Good Governance, (GSP+) grants complete duty suspension for countries especially vulnerable in terms of their economies' diversification and import volumes. In return, beneficiary countries must ratify and effectively implement 27 core international conventions that cover human and labour rights, environmental protection, and good governance.
The Philippines is one of currently 14 GSP+ beneficiaries, allowing it to import more than 6.000 products duty-free to Germany and other EU-countries.
More Information:
ASEAN Economic Community: Southeast Asia's Common Market
With the official launch of the ASEAN Economic Community (AEC) on 31 December 2015, the ten ASEAN member countries – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam - now form a single market and production base. Collectively, the region is the 7th largest economy in the world and, with more than 600 million people, the 3rd largest market.
100% of originating goods can now be traded customs-free within the ASEAN-6 (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand), the most developed economies of the association. However, special provisions still apply for Cambodia, Laos, Myanmar and Vietnam.
The services sector is opening up gradually, eventually allowing ASEAN investors 70% ownership in joint ventures in 128 lines of business. The first sectors to open up are finance, tourism, logistics and health.
Already in 2016, the labor market has been liberalized for professionals and specialists in eight fields, namely medicine, dentistry, nursing, engineering, architecture, natural resources and geographical exploration, and accounting. However those are often still subject to national exams such as language tests.
In general, a high number of national rules and regulations keeps setting limits to the theoretically free market, leading to non-tariff barriers and other obstacles. Harmonization of rules and implementation of common standards will probably still take several years. The roadmap ASEAN 2025 sets further targets towards establishing a common market that will resemble the European Union.
The German Chambers of Commerce and Industry in Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam established the German Chamber ASEAN Business Council (GCABC)to provide a dialogue platform, strengthen regional cooperation and to support regional trade and investment.
For more information about ASEAN, AEC and the GCABC, please visit http://gabc.asia/gabc.html
EU-PH FTA: negotiating free trade trade with Europe
The Philippines and the European Union (EU) successfully held the first round of negotiations for a free trade agreement in Brussels from May 23 to 27, 2016.
Both sides share the ambition to conclude an agreement that covers a broad range of issues, including elimination of customs duties and other barriers to trade, services and investment, access to public procurement markets, as well as additional disciplines in the area of competition and protection of intellectual property rights.
The prospective agreement will also include a comprehensive chapter that will ensure that closer economic relations between the EU and the Philippines go hand in hand with environmental protection and social development.
The European Free Trade Association (EFTA), consisting of the non-EU countries Iceland, Norway, Switzerland and Liechtenstein, signed a free trade agreement with the Philippines in 2016.
More:
DFA press release May 2016: First round of PH-EU FTA negotiations held in Brussels
EU-Questionnaire on a free trade agreement with the Philippines: Feedback from Industry stakeholders
Regional Comprehensive Economic Partnership: Strengthening ties in Asia-Pacific
The Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement between the 10 member states of the Association of Southeast Asian Nations (ASEAN) and its major Asia-Pacific trading partners China, Japan, South Korea, India, Australia, and New Zealand.
RCEP countries are considering opening up their markets to between 80% and 92% of all categories of goods. RCEP accounts for half of the world’s population, nearly 30% of global trade and $22.7 trillion in combined gross domestic product.
More:
Gov’t gearing up for RCEP, EU trade deal negotiations in 2017