PH seeks preferential US tariff for garments
MANILA -The Philippines is pushing for the inclusion of its garment exports in the preferential trading scheme with the United States once it is renewed, as part of the government’s efforts to help the struggling local industry currently valued at around $1.5 billion annually.
Trade Secretary Alfredo Pascual said that the updated Philippine Export Development Plan, to be launched on Thursday, would include the goal of including the country’s garment exports in the US Generalized System of Preferences (GSP).
“We want our garments to be competitive in the US market by giving [this to] our producers here, our exporters here—putting them on a level playing field with garments from the Americas,” Pascual told reporters in a recent interview.
Pascual added that including garments in the US GSP would boost the industry and create more jobs given its labor-intensive nature.
The Philippines’ eligibility to the US GSP had expired in 2020 but the country is pushing for renewal soon.
The trade preference program provides zero duties to 3,500 Philippine exports, which totaled $1.6 billion in value in 2020, according to the Department of Trade and Industry. Local exports under the scheme include tires, bags, insulated electric conductors, sugar, non-alcoholic beverages and hair dryers. INQ
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