Phl to push for duty-free exports to US for goods from Yolanda-hit areas

MANILA, Philippines - The government will push for the proposal seeking to allow duty-free entry of goods produced in areas hit by Super Typhoon Yolanda after the US mid-term elections this year, the Department of Trade and Industry (DTI) said. 

Trade Secretary Gregory Domingo told reporters the government would wait for the next US Congress to pursue the draft bill that would give duty-free entry to goods produced in areas devastated by Yolanda.

“We will not do it until after the US elections in November because there are going to be some changes,” he said. 

The US House and Senate mid-term elections would be held in November, while the next or 114th US Congress will convene in January next year.

Even as it may take time before the Philippines could find a sponsor for the draft bill, Domingo said the government is still hopeful the proposed measure would help encourage firms to set up operations in the typhoon-affected areas.

The government, he said earlier, wants to propose a “minimum of seven to 10 years for the trade preference.”

The draft bill for Yolanda-affected areas is being pushed to help spur economic activity in the devastated region.

The government sees opportunities for firms engaged in the manufacture of garments, handicraft and food products in the typhoon-affected areas.

Yolanda, which hit provinces in central Philippines in November last year, is considered to be one of the strongest typhoons as it killed thousands and left many homeless.

Domingo also said that while the government has to wait for the outcome of the US mid-term elections before pushing for the Yolanda bill, it is still hopeful the country would qualify for the European Union (EU) Generalized Scheme of Preferences Plus (GSP+), a scheme that would to allow more goods to enter the bloc at zero duty. 

The Philippines submitted its application to the EU GSP+ earlier this year. 

If the Philippines qualifies for EU GSP+ status, the country’s exports to the region are expected to increase.

At present, the Philippines is a beneficiary of the regular GSP, which covers 6,209 products, with 2,442 products subject to zero duty and the rest slapped with lower tariffs.

The EU GSP+ covers 6,274 products which can enter the EU at zero duty.

“The GSP +, we are waiting for that. That will give us big benefits,” Domingo said.