KEY economic officials as well as the Department of Foreign Affairs were kept in the dark in President Rodrigo Duterte’s decision to reject some 250 million euros in aid from the European Union.
“We haven’t seen the details. We still need to clarify the details…we can’t say yet which will be affected because it is not clear to us what the decision covers,” Foreign Affairs spokesman Robespierre Bolivar said.
Socioeconomic Planning Secretary Ernesto Pernia, in a separate interview, admitted that members of the administration’s economic team were not consulted before the EU Delegation in Manila was informed of the policy change.
“No, I don’t think so,” Pernia said, adding that he was “in a way” surprised by the development and that he does not believe that the policy has been set.
“No, it’s not policy. Policy is something that is more permanent. If it’s refused this year, maybe it might not be refused next year. So, this is only for this year,” he said. “If I were to make the decision, I would not [reject the aid]. I’m a friendly person.”
Pernia said he will discuss with other members of the economic team whether or not they will recommend a reversal of the pronouncement that was only relayed verbally to EU officials in the country.
“We will collectively decide. The three of us [Budget Secretary Benjamin Diokno and Finance Secretary Carlos Dominguez III] will collectively decide,” he said.
Presidential Spokesman Ernesto Abella confirmed there was already a Palace circular on the aid rejection, but said it was “not for public consumption” and that he was not sure if it has already been formally transmitted to the EU.
Trade Secretary Ramon Lopez, for his part, clarified that while the government says it is willing to let go of aid from the European Union, it does not want to lose privileges that Filipino exporters enjoy under the EU GSP+ program.
“We don’t want the current GSP+ to be affected. It is not a grant and they’re commercial transactions that can mutually benefit both sides. EU should continue to engage the country,” he said.
The Philippines joined the countries that benefit from the Generalized System of Preference Plus in December 2014. The 10-year program enables Filipino exporters to sell more than 6,000 products to the EU at low or zero tariff raes.
“EU investors in the country that export back to EU also benefit from the GSP. Its a mutually beneficial arrangement,” said Lopez.
Earlier, European Trade Commissioner Cecilia Malmstrom said the EU parliament and EU member states have concerns about extrajudicial killings and the proposed revival of the death penalty could jeopardize the Philippine’s ongoing GSP+ program with the EU.
“We have our concerns about some issues here in the Philippines like the extrajudicial killing and death penalty. We have an agreement [with the Philippines] we called GSP+ which opens good trade opportunities. But those are subject to certain international conventions,” she said. With Julito Rada