The Philippines want the EU to relax Generalized Scheme of PreferencesPlus requirements.

The European Union’s double transformation rule requires that two stages of production take place in a free trade area region. It also says that under cumulation rules, contracting parties to a preferential trade agreement or beneficiary countries under the GSP schemes may source non-originating raw materials or components from specified countries and count them as originating. The country feels rules of origin requirements of the EU hamper the garments sector’s utilization of the special incentive arrangement and put the competitive position of Philippines manufacturers at risk.

So the country is seeking liberal rules of origin for products of interest and inclusion of export pillars in zero tariffs product liberalization of the EU-Philippines free trade agreement. GSP Plus allows duty-free entry of over 6,000 products from the Philippines to the EU, on the condition that the government upholds 27 international conventions on human rights, labor, environment and climate action and good governance.

The Philippines has recorded its highest utilization rate in EU GSP Plus at 76 percent. However, the EU has been vocal in its criticism against the Philippines due to its alleged human rights violations and suppression of freedom.