The Philippines plans to lobby for the inclusion of Philippine footwear in the US general system of preferences after successfully adding up travel goods in the list.
Trade Secretary Ramon Lopez said in a briefing Monday the development was part of the series of bilateral meetings with dialogue and trade partners held during the 49th ASEAN Economic Ministers Meeting and Related Meetings in Manila.
“It is well-known that travel goods and footwear are two of the most protected industries in the US. We are thankful enough to the United States Trade Representative for accepting our request to include trade in goods to the GSP. It is not only the Philippines that is advocating it but the US buyers as well,” he said.
The formal proposal will be made once the refinancing act of the GSP expires on December 2017.
Lopez during his trade visit to the US in late August 2017 successfully obtained the support of the American Footwear Association.
Philippine travel goods came in as additional inclusion under the GSP program that extended the coverage to 23 tariff lines. Travel goods include apparels, bags, wallets and backpacks, luggage and sport and travel bags.
The US imported an estimated $232 million from the 23 tariff lines of travel goods from the Philippines in 2016, making the country the fifth largest import source, according to the US International Trade Center.
With the new GSP scheme, the duty-free treatment could increase Philippine travel goods exports to the United States by $100 million annually for the first five years.
The US in 2016 was the Philippines’ third major trading partner, the second biggest export market and third top import supplier.
A number of American companies are manufacturing travel goods in the Philippines, including Coach, Tory Burch and Michael Kors.
The Philippines will also pushed for the increased presence of Philippine fruits to Japan, Australia and Korea.
The Philippines has a long standing request to export big bananas to Japan, as well as pineapples and mangoes.
Philippine bananas have made inroads in Japan, South Korea, China, New Zealand and the Middle East, but Biosecurity Australia continues to ban the fruit.
