President Marcos urges United States Congress to reauthorize GSP

WASHINGTON — President Marcos has urged the United States Congress to fast-track the reauthorization of the US Generalized System of Preferences (GSP) program, which granted duty-free privilege to more than 3,500 exports from the Philippines.

The oldest and largest American trade preference program, GSP was established through the Trade Act of 1974 to promote economic development in beneficiary countries by eliminating duties on thousands of their products entering the US. It has benefited a total of 119 countries, including the Philippines.

In remarks delivered during the Philippine-US Business Forum last Saturday here, Marcos said the future with the US would be sustained not just through the country’s “ironclad” security and defense alliance, but also through closer economic integration.

“For this reason, we appeal to the US Congress to fast-track the reauthorization of the US GSP program which has benefitted beneficiary countries such as the Philippines,” the President said. “On the other hand, the Philippines is also a major market for US products, and in 2021, based on data from the US Department of Agriculture, the Philippines is the 8th largest market for US agricultural exports and the top market in Southeast Asia.”

Marcos noted that the Philippines imported $3.5 billion worth of agricultural goods from the US in 2021. According to him, it is not surprising that US agriculture and food exporters are seeking lower tariffs and expanded market access for their products in the Philippines.

The President also cited the demand from the private sectors of the Philippines and the US for engagement in a bilateral free trade agreement (FTA) between the two countries.

“The benefits for concluding an FTA together with a Critical Minerals Agreement between both our countries will be transformative and will create new jobs, strengthen supply chains, establish new businesses and upskill our workforce,” he said.

Semiconductors and integrated circuits were the Philippines’ biggest exports to the US last year, reaching $3.1 billion, or 23.3 percent of its total exports to the North American country.

Aside from being a treaty partner and traditional ally, the US was the Philippines’ 4th largest source of foreign direct investment in 2023.

Last March, Commerce Secretary Gina Raimondo said US firms are planning to invest in at least $1 billion worth of projects that are expected to generate educational and career opportunities for Filipinos.

During a dinner hosted for him by the non-profit US-Philippines Society (USPS) also last Saturday, Marcos noted that economic cooperation is a key pillar in the two countries’ relationship.

“Economic cooperation with the United States is, of course, a priority and it is paramount to the Philippines,” the Chief Executive said.

Stronger alliance

Marcos said he was returning to the Philippines with the good news that the country’s alliance with the US has become stronger, bolstered by economic engagements, close people-to-people ties, and reinforced by the growing friendship and cooperation with like-minded partners in the Indo-Pacific region.

“More importantly, I bring home the commitment from our three countries to sustain the momentum of this increasingly close partnership in the years to come, all for the benefit of our people and for the security of our region,” the President said.

Manila and Washington, Marcos said, have been collaborating well in various areas, including defense and security, trade and investment, food security, energy security, renewable energy, combating climate change, digital transformation, infrastructure development and humanitarian assistance and disaster relief.

The Chief Executive pointed out that the Philippines’ alliance with the US significantly contributes to its capability to defend itself and respond to security threats. Such challenges are addressed through the US government’s support for the Philippines’ armed forces’ modernization program, frequent joint exercises and training and increased deterrence, he added.

Marcos also cited the US officials’ assurance that their country’s commitment to the Mutual Defense Treaty is ironclad.

He visited Washington this week to participate in the historic trilateral summit with US President Joe Biden and Japanese Prime Minister Fumio Kishida.