Exports to UK still duty-free

MANILA, Philippines — Philippine exports under the European Union Generalized Scheme of Preferences Plus (GSP+) will continue to enjoy duty-free entry to the UK even as the latter has exited the EU.

To take advantage of the trade privileges, the Department of Trade and Industry (DTI) is promoting certain exports to the United Kingdom, which include manufacturing components and food products.

In a statement yesterday, the DTI said the UK has replicated the market access and benefits provided under the EU GSP+.

The Philippines, a beneficiary of the EU GSP+, is included in the UK Enhanced Framework or the UK’s GSP+ counterpart.

“The Philippines considers the UK as one of its major trading partners. We appreciate the inclusion of our country in the UK GSP and we are looking forward to resuming trade under this system,” Trade Undersecretary Abdulgani Macatoman said.

After the UK left the EU on Jan. 31 last year, the parties agreed on trade and travel rules that would apply at the start of this year.

As a beneficiary of the EU GSP+, the Philippines enjoys duty-free entry for 6,274 products or two-thirds of its tariff lines including bananas, tuna, pineapple and footwear.

Under the UK Enhanced Framework, two-thirds of Philippine product lines will also be eligible for zero tariff.

Similar to the EU GSP+, the UK Enhanced Framework would require the Philippines’ compliance with the 27 international conventions on human rights, labor rights, environmental protection and good governance.

To qualify for the UK’s trade benefits, exporters need to fill out the GSP Form A and provide a certificate of origin.

The DTI is actively pushing for exports of manufacturing components, apparel, processed and specialty food, and information technology and business process management to the UK.

Last year, Philippine exports to the UK reached around $404 million, down 20 percent from $506 million in 2019.

Top export products to the UK last year were pulp from waste paper, tuna, semiconductors and integrated circuits.