At a webinar organized by the Philippine Exporters Confederation Inc, the Department of Trade and Industry (DTI) said it plans to urge European Union to allow Philippine garment exporters use imported fabric or textiles under the bloc’s Generalized Scheme of Preferences Plus. As per a Phil Star report, the GSP+ scheme allows duty free export of 6,274 products from the Philippines to the EU if these products originate from the country.

For Philippine garment exports to qualify for the zero duty, the country needs to use locally made fabric or textiles. However, Philippine garment exporters face difficulty in complying with the requirement due to limited sources of raw materials, says Allan Geply, Trade Assistant Secretary, Philippine Exporters Confederation Inc.

Most raw materials are being sourced from China which do not qualify under GSP+, he adds. He urged the Union to amend this rule. Robert Young, President, Foreign Buyers Association of the Philippines (FOBAP) said, the amendment would enable the country to ship $100 million worth of additional exports to the EU. DTI also plans to push for a free trade agreement (FTA) with the EU.