The European Commission voted in September 2021 to renew the Generalised Scheme of Preference (GSP) for the period of 2024 – 2027. The scheme aims to reduce poverty by promoting sustainable development in beneficiary countries. Participating countries enjoy tariff reductions and tariff preferences[1] based on their performance on core conventions concerning human rights, labour rights, and newly included, environmental concerns and governance[2]. 

Based on the 2018 Mid-Term Evaluation of the GSP, impact assessments, and open consultations[3], the renewed GSP scheme will include several new adjustments, which participating countries will have until 31 December 2025 to meet them. The new adjustments contain 6 new proposals in addition to the 27 conventions required of GSP+ beneficiaries[4]. They are: 

• Optional Protocol to the Convention on the Rights of the Child on the Involvement of Children in Armed Conflict (2000) (Area: Human Rights, monitoring body: Committee on the Rights of the Child (CRC))
• Convention on the Rights of Persons with Disabilities (2007) (Area: human rights, monitoring body: Committee on the Rights of Persons with Disabilities)
• Convention on Labour Inspection No 81 (1947) (Area: labour rights, monitoring body: Committee of Experts on the Application of Conventions and Recommendations (CEACR))
• Convention on Tripartite Consultations No 144 (1976) (Area: labour rights, monitoring body: Committee of Experts on the Application of Conventions and Recommendations (CEACR))
• The Paris Agreement on climate change (2015) [Note: it replaces the Kyoto Protocol] (Area: environmental protection)
• United Nations Convention against Transnational Organised Crime (2000) (Area: good governance)

The Philippines currently enjoys trade preferences under the European Union’s GSP+ scheme and has ratified 5 of the 6 Conventions, with only Convention No. 81 on Labour Inspection remaining unratified[5]. It was also recently announced that the EU-Philippines FTA would restart negotiations officially. When concluded, the new FTA should replace the current GSP+ benefits. 

EU’s GSP initiative also has another category for Least Developed Economies known as Everything-But-Arms (EBA). Beneficiaries of the EBA enjoy no tariffs and quotas for all imported goods into the single market with the exception of arms and ammunition[6]. Laos, Myanmar, and Cambodia.

[1] European Commission 2021/0297 (COD)
[2] GSP Hub, https://gsphub.eu/about-gsp
[3] European Commission, https://policy.trade.ec.europa.eu/development-and-sustainability/generalised-scheme-preferences_en
[4] GSP Hub, https://gsphub.eu/news/gsp-proposal
[5] International Labour Organisation, https://www.ilo.org/global/topics/safety-and-health-at-work/country-profiles/asia/philippines/WCMS_209367/lang–en/index.htm#:~:text=The%20Philippines%20has%20not%20ratified,129.
[6] GSP Hub, https://gsphub.eu/about-gsp/eba