Despite expressing serious concerns on human rights violations in the Philippines, the European Union took a huge consideration on the country’s initiative to improve labor rights of the Filipino employees by abolishing the so called “endo” scheme, improvents in protecting the environment, gender equality, people trafficking and anti-corruption drive, among others.
With the improvements, the Philippines can still enjoy the zero-tarrif benefit to the EU market or the Generalized Scheme of Preferences (GSP+) as the country was able to export local goods worth of €1.67-billion to the EU under GSP+ preferential treatment.
“Thanks to completely removed duties for most products, the Philippines' exports to the EU grew by over 21 percent since last year,” EU ambassador Franz Jessen said.
An estimated P120 billion worth of exports were benefiting from GSP+ trade preferences, especially in the food and agricultural sector, Jessen said.
Exports of the Philippines to the EU under GSP+ increased from EUR 584-million in the first half of 2015 to EUR 903-million in the first half of 2017.
EU said 2017 garnered the largest increases including for animal products which increased by 64-percent; fish and related products, +71-percent; prepared foodstuffs, +60-percent; edible fruits, 39-percent; automotive parts, 71-percent; leather, +77-percent; textile with 145-percent increase; and footwear with +74-percent increase.
Moreover, foreign direct investments from the 28 EU member states represent the largest FDIs in our country, supporting over 500,000 Filipino jobs.
“This makes the EU the Philippines' second largest export partner, after Japan and before the US and China,” Jessen said.
As part of the Philippines's commitment under GSP+, the EU and the Philippines have an ongoing dialogue on the implementation of 27 international conventions on human and labour rights, the environment, and good governance.
“We see progress in some areas [for instance labor and environment], and have a frank discussion on others [such as death penalty],” Jessen said.
The GSP report assesses progress in the implementation of 27 international conventions that the Philippines has ratified as a sovereign country.
The assessment is based on reports from international monitoring bodies of the United Nations and the International Labour Organization, as well as dialogues with the Government, civil society, business and trade unions.
For instance, the EU report said that on the labor rights issue, the Philippines’ socio-economic plan address some of the pertinent laborr issues such as its drive to end the so called “endo” scheme.
The Philippines was also able to ensure investigations of violence against trade unions and prevention of such cases.
The country was also able to align labor legislation with ILO Convention 87 on freedom of association.
With regards to environmental protection and climate change, the Philippines has ratified the Paris Agreement and made progress on tackling illegal ivory trade, also in cooperation with the customs office.
Progress has also been noted in areas such as gender equality, people trafficking, health, education, social-economic rights, and the fight against corruption.
The EU report however said that the reported extra judicial killings under President Rodrigo Duterte’s drug campaign remained a serious concern.
Still, the EU vowed that it will continue to work closely with the Philippines through the ongoing GSP+ monitoring process, seeking to provide support to ensure that continued and tangible progress is made on implementing the 27 international conventions.
Meanwhile, the European Union Delegation to the Philippines warmly welcomed the third approval of the EU-Philippines Partnership and Cooperation Agreement on Monday in the Senate.
Jessen said that the concurrence of the Senate to the ratification of the Partnership and Cooperation Agreement is a major milestone and a big step forward in the EU-Philippines relationship.
The PCA will serve as a general framework to allow better collaboration between the EU and the Philippines in a number of crucial areas including in political, economic and development issues.
Jessen said Philippines and the EU established diplomatic relations 1964, and this partnership has matured and evolved over the years.
The EU ambassador said that now that the Senate has concurred to the ratification of the Senate, the next challenge is to get this framework effectively operational.
"From the EU side, we will do everything to keep the relationship with the Philippines robust, dynamic and positive,” he said.
In February, the EU mission went to the Philippines and stayed for ten days to assess if the country still qualifies the zero-tariff benefits to the EU market.
In order to keep the benefits under the GSP+, the Philippines should make good "steady or slow progress" in its implementation of its commitment to the 27 international treaties and conventions on human rights, labor rights, environment and governance.
The Philippines has been exporting to EU products such as crude coconut oil, canned tuna, pneumatic tires, spectacle lenses, relays, and preserved fruits under GSP+.
The top five Philippine exports to the EU under the GSP+ this year are Agri oil products; Electrical Machinery; Processed meat and fish; optical products; and processed vegetables, fruits and nuts.
