PRESS RELEASE
WDC-74-2024
23 September 2024
Embassy Press and Information Section
Philippine Ambassador Jose Manuel G. Romualdez stressed the importance of the reauthorization of the Generalized System of Preferences (GSP) in building an economically secure region and providing a more reliable trade option for U.S. allies and partners.
The Ambassador joined a panel discussion hosted by the Center for Strategic and International Studies on the Implications of GSP Renewal and Great Power Competition.
The GSP is a U.S. trade program that provides non-reciprocal duty-free treatment for specific products imported from designated developing countries, and aims to stimulate growth through trade.
The Philippines is one of the major GSP beneficiary countries in the ASEAN. Through the program, the Philippines benefits through the growth of specific sectors, such as the travel goods manufacturing industry, and the creation of jobs for workers all over the country.
The GSP expired on 31 December 2020, and will require the U.S. Congress to pass legislation to reauthorize the program.
Panelists agreed that the GSP benefits not only eligible countries but also the U.S., given its positive impact on American businesses and the cost of imported goods, lowering the prices of commodities in the U.S. market.
The GSP has bipartisan support in Congress. However, additional requirements for eligible countries have been proposed, many of which are deemed too restrictive for developing countries, such as labor and environmental standards.
“The increase in local content requirement of up to 50% for GSP products does not seem feasible. This requirement needs to be undertaken in progression to enable the global supply chain to grow and diversify,” said Ambassador Romualdez.
The panelists also stressed the urgency for the U.S. to renew the GSP program as it stands to miss the opportunities in global trade while China continues to dominate economic engagements with the rest of the world.
“Ultimately, economic security will be our best defense against economic risks and threats. An economically strong country will stand as an equal partner of the U.S. in pursuing our common interests”, said Ambassador Romualdez.
Other guests in the panel included former Chairman of the House Committee on Ways and Means Dave Camp; President and CEO of Crayola, Pete Ruggiero; and CSIS Senior Adviser for Americas Program, P. Michael McKinley. The panel was moderated by Meredith Broadbent.###