Makati city: The Philippines was able to utilize around 80 percent of its trade perks under the European Union's (EU) Generalized Scheme of Preferences Plus (GSP+) in 2025, EU Ambassador to the Philippines Massimo Santoro said Tuesday. "We went around 80 percent. It's a super high utilization rate by the Philippines of the current GSP+ that we have," he stated during a forum held by Stratbase ADRI.

According to Philippines News Agency, the GSP+ is an incentive scheme that grants the Philippines zero percent tariffs for almost 7,000 EU product lines, contingent on compliance with 27 international conventions covering good governance, and human and labor rights, among others. The scheme is set to conclude in 2027, which intensifies the urgency for a Free Trade Agreement (FTA) between the EU and the Philippines, a prospect that Santoro is optimistic about finalizing this year.

The Philippines remains the only Southeast Asian nation benefiting from the EU GSP+ scheme. Currently, negotiations are also underway for a bilateral FTA with Manila, expected to conclude by 2026. Santoro noted that the latest round of talks suggests a positive direction for the deal's conclusion this year. "Both the Philippines and the European Union team are doing an amazing job. It's a great synchronization of targets and efforts," he remarked.

Santoro also highlighted the broader geopolitical context, mentioning the ongoing Middle East conflict. He pointed out that the conflict could further strengthen EU-Philippine relations both politically and economically. "The moment that this current ongoing conflict in the Middle East continues, extends in time, this becomes challenging not for the bilateral relationship between the EU and the Philippines, but reciprocally for global supplies, for energy-related issues," Santoro explained. He emphasized that this scenario presents an additional opportunity for cooperation between the EU and the Philippines.