Philippines wants garments included in US GSP

MANILA, Philippines — The Philippines wants garments as the next product added in the US Generalized System of Preferences (GSP) coverage, Trade Secretary Ramon Lopez said.

The country has a pending request to the US to expand anew its GSP coverage to include footwear products following the inclusion of travel goods last year.

After footwear, Lopez said garments are next on the list given the products’ high potential in the US market.

“We would like to push for the inclusion of garments in the GSP. It is another sector of interest to us, after footwear,” he said.

“If you look at the US, their garments are coming from Asia,” he added.

The US GSP seeks to promote economic growth and development in developing countries through preferential and duty-free entry to the US market of products from 122 designated beneficiary countries and territories, including the Philippines.

Last week, the US House of Representatives passed a bill that would provide a three-year renewal of the GSP program.

According to Lopez, the move is seen as a positive development for Philippine exporters utilizing the US GSP program.

“Congress will be passing a bill to make GSP three years validity instead of an annual renewal. Now, our exporters are assured of continuity. It will obviously won’t break the momentum if you’re an exporter,” he said.

Meanwhile, Lopez said the exploration stage of the proposed bilateral free trade agreement (FTA) between the country and the US are also continuing.

He said domestic consultations with industries are ongoing in preparation for advancement of talks.

Lopez sees great progress for the proposed FTA happening in one to two years’ time, when official negotiations hopefully commence.

“We hope to see that, to progress into actual negotiation and more in depth discussions in the next one to two years. Now at least it is moving and talks have started,” he said.

Lopez earlier said US President Donald Trump welcomed the suggestion for the FTA and said they would consider exploratory talks.

Bilateral trade in goods between the US and Philippines in 2016 reached $18.2 billion.

The Philippines was the US’ 31st largest export market for goods in 2016, while the US was the Philippines third major trading partner, the second biggest export market, and third top import supplier.