Corruption can put Philippines trade perks at risk – EU

MANILA, Philippines — Corruption is a key element that may affect the Philippines’ eligibility to enjoy trade preferences under the European Union’s Generalised Scheme of Preferences+ (GSP+), according to the EU’s top diplomat in the Philippines.

In an interview during his visit to The STAR on Wednesday, Ambassador Massimo Santoro said there is a monitoring mechanism that looks at corruption and human rights and whether a country can maintain GSP+, amid a series of allegations of corruption, mismanagement and irregularities in government-funded flood control projects involving lawmakers and government officials.

“It is also an element, important to also always keep into consideration, including both in the GSP framework and FTA framework,” Santoro said when asked whether issues of corruption may affect the Philippines’ GSP+, which is in effect until 2027.

GSP+ is a special incentive arrangement for sustainable development and good governance, which grants duty-free access to the EU market for two-thirds of tariff lines.

This enhanced access is conditional on the Philippines implementing a range of international conventions covering issues such as human and labor rights, good governance and environmental protection.

He said a GSP+ mission was in the country to check all aspects, including human rights – considered a fundamental element – for maintaining the GSP+.

The results of the mission in the Philippines and other countries will be made public early next year.

“We also have our own mechanism. Whenever there is something not going in the right direction, the European Commission together with the Council of the European Union can even open formal complaints against all (EU) member states, so nobody is free from checks. Why I mentioned this is because human rights is a fundamental element,” Santoro said.

“Corruption is part of it,” he stressed.

The EU monitors the Philippines’ compliance with its international obligations in the areas of human and labor rights, good governance and environmental protection and pursues dialogue to encourage further improvement.

The ambassador said the EU strongly supports the fight against corruption and reforms, underscoring assurance for complete accountability.

The fight against corruption, he said, is enshrined in the instruments establishing bilateral relations with a country.

The rule of law and good governance, he said, are among the areas of cooperation mentioned in the Partnership and Cooperation Agreement between the EU and the Philippines.

He said the Marcos administration knows what’s at stake when he mentioned the fight against corruption and the flood control projects in his State of the Nation Address.

“I’m sure that the President knows very well what is at stake and together with the administration how to tackle this,” he added.

Santoro said the announcement of setting up an independent commission to investigate corruption on flood control projects to be given “the authority to investigate anything and anyone” is a good signal.