SELECT Philippine exports can now enjoy fresh duty-free privilege in the United States market up to July 2013 after Washington renewed its Generalized System of Preference (GSP) scheme.
Undersecretary for Industry Development and Trade Policy Adrian S. Cristobal Jr. said the GSP renewal signed by President Obama on October 21 also allows those who paid duties since January 1 to claim refunds.
“The renewed program provides retroactive claim for preferential duty-free access starting January 1, 2011. Our exporters will be refunded for the difference in tariffs paid after the GSP expired in December 2010. US Customs is now preparing guidelines for the refund process,” Cristobal said.
The GSP program of the US government is designed to promote economic growth in the developing world by providing preferential duty-free entry to some 4,800 products from 129 beneficiary countries. Some of the countries that benefit from the GSP include Thailand, India, Brazil, Africa, Turkey, and the Philippines.
Data from the Bureau of International Trade Relations showed that last year, the Philippines was the 7th top beneficiary, accounting for 4.9 percent of the total GSP imports to the US.
“Philippine GSP utilization in 2010 was 72 percent, a strong indication that the GSP is a valuable market access tool of Filipino exporters in maintaining competitiveness in the US market,” Cristobal said.
The GSP, Cristobal said, benefits both the Philippines and US. While it grants preferential treatment to Philippine exports, analysts estimate that in the US alone, close to 82,000 jobs are either directly or indirectly associated with the importation and use of GSP-eligible imports, including manufactures and semimanufactures, agricultural, fishery and primary industrial products.
For the Philippines, products eligible for GSP are cane sugar, bananas, parts of air-conditioning machines, wooden tableware and kitchenware, silver articles of jewelry, some types of women’s or girl’s dresses, parts of machinery, and other food products such as dried mangoes, guavas and mangosteen.
The GSP becomes effective on November 5 and will remain in effect until July 31, 2013.
“The US is an important ally of the Philippines and we welcome the move of the US Congress to renew the GSP privileges. The renewal of the GSP secures close to $1-B exports revenues,” Trade Secretary Gregory L. Domingo said.
The United States ranked second to Japan as the Philippines top export market in 2010. Total 2010 bilateral trade between the Philippines and the US amounted to $13.86 billion. The Philippines was the US’s 36th supplier of imports and 30th largest export market for the same period.
