BUSINESS leaders aired hopes on Monday that the European Union’s (EU) call for the Philippines to address human rights issues—a factor seen potentially affecting their trading relationship—will not be made into a political matter ahead of May’s elections.
Philippine Chamber of Commerce and Industry (PCCI) President George Barcelon said in a virtual forum on Monday that there is no reason to take away the Philippines’s trade incentives with the EU, as the issues raised were not new.
“I hope this is not being politicized. This is the election year we are heading,” Barcelon said.
“We feel that if all the clamoring for suspension of these privileges was done two, three years ago, why do it now?” he asked.
A similar concern about the timing of the EU move was manifested by another business leader, Federation of Filipino Chinese Chambers of Commerce & Industry Inc. (FFCCCII) President Henry Lim Bon Liong.
“How come now that it is only during election time that they are coming with these threats?” he said.
Barcelon said they are aware of the impact of removing the trading perks for the country’s exports, hoping that it will not come to that extent.
Over 6,000 product lines
The Philippines was granted the Generalized System of Preferences Plus (GSP+) perks in 2014, providing zero duties on 6,274 products or 66 percent of all EU tariff lines. Among the local products where tariffs are eliminated upon entering the EU are tuna, pineapple, bicycles, textiles and garments and footwear.
According to its recent resolution, the European Parliament earlier asked “to set clear, public, time-bound benchmarks for the Philippines to comply with its human rights obligations” under the GSP+.
For his part, Bon Liong noted, meanwhile, “As we need to export to them, they also need our products also. It is a two-way affair.”
Nonetheless, Lim Bon Liong said that should GSP+ be removed, local exporters can offset the potential losses with the Regional Comprehensive Economic Partnership (RCEP).
As such, he called for the ratification of the trade deal so the Philippines can benefit from it already.
RCEP, which entered into force last month, is a free trade agreement among Asean countries and their trading partners including Australia, China, Japan, New Zealand and South Korea. This represents 30 percent of the global gross domestic product (GDP) or $26.2 trillion.
Lopez backed
Both business leaders also backed Trade Secretary Ramon Lopez’s statement on the matter.
“I believe he [Lopez] eloquently answered the question. There is no reason to take that trade privilege away from our country when they’re still talking about the same issue,” Barcelon said.
Lopez earlier said the Philippines will likely retain its market access and trade incentives with the economic bloc. He stressed that the country has a dialogue mechanism with the EU to address issues and concerns that can impact their trading partnership.
In addition, the country is compliant with the 27 international core conventions on human rights, labor, environment and good governance, the trade chief said.
As for Presidential Adviser for Entrepreneurship Jose Maria A. Concepcion, he sees the upcoming elections providing a clean slate between the country and the economic bloc.
“I believe as we elect new leaders, there will be a reset in relationships. I’m optimistic that the issue can be resolved with this election coming in,” he explained.
Economic aspect
Concepcion, Barcelon and Lim Bon Liong are optimistic that the country’s next top leader will prioritize the economy in the road to recovery from the pandemic.
“I think it is very clear that all of them agree that the economy is vital to their presidency. They will be open to ideas,” the Go Negosyo founder said.
Concepcion added that many of the candidates are also leaning towards the reopening of the economy.
“We do believe that whoever wins knows what is good for the nation. We can see that…they are pretty grounded on what is needed in our country’s economy,” Barcelon added.
Meanwhile, all of them pushed for further easing of the mobility restrictions, calling for a transition to the more relaxed Alert Level 1 by March. Lim Bon Liong, however, stressed the need to be “cautious enough to contain the virus” still.
“We are in favor of lowering …the alert level but cognizant of the fact that Covid is still around,” Barcelon said, stressing the need to put in place health protocols to avoid a surge in cases.
The PCCI official also asked the government to ensure the availability of transportation for the public to allow more mobility.
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