Does the Philippines Need the EU'S GSP+?

Abstract

The Philippines’ bilateral relationship with the European Union (EU) is one of its most long standing and consequential diplomatic relationships. The Philippines benefits enormously from European trade, investment, and aid – not to mention, the political-security, socio-cultural, and development cooperation between the two sides. However, ties between the two have recently become strained. The EU has harshly criticized the Duterte administration for its signature war on drugs. Moreover, the former has expressed misgivings about the latter’s attempts to legalize the death penalty and lower the criminal age of responsibility. In response, Duterte has rescinded European aid to the country to prevent it from being used by the EU as leverage to influence Manila’s internal affairs. As a result, the EU has threatened to impose economic sanctions on the country if it fails to address these concerns. In particular, it has threatened to withhold the Generalised Scheme of Preferences Plus (GSP+), a trade preference that allows the Philippines to export goods to the European market duty-free.