Export model utilizing FTA Tariff Reduction
The Philippines can increase export by leveraging FTA tariff reductions with FTA partner
countries.
Export destination countries may prefer Philippine-made products benefiting from tariff reductions when comparing imports from the Philippines under the FTA versus non-FTA countries.
Export destination countries may prefer Philippine-made products benefiting from tariff reductions when comparing imports from the Philippines under the FTA versus non-FTA countries.
It is possible to promote exports by leveraging price advantages as below example.
Example
The world’s major banana exporting countries
- Rank
- 4
- 5
- Country
Colombia
Costa Rica
- Exporting Amount (Unit : 10,000 ton)
- 180.6
- 117.8
Banana processed products
Check Points
- Tariff
- MFN
- AKFTA
- Rate
- 54%
- 0%
Ecuador does not have an FTA in effect with Korea yet, the Philippines can capitalize on this by promoting the maximum 54% tariff advantage over Ecuador, leading to increased exports.
Export model utilizing GSP Tariff Reduction
The Philippines can leverage the GSP to gain an advantage in tariff benefits over other
developing countries.
The Philippines benefits from GSP privileges for exports to the EU, UK, and US, allowing it to promote tariff benefits to importers compared to non-GSP graduated countries.
The Philippines benefits from GSP privileges for exports to the EU, UK, and US, allowing it to promote tariff benefits to importers compared to non-GSP graduated countries.
It is possible to promote exports by leveraging price advantages as below example.
Example
Philippines’s Top Export Items
- Rank
- 4
- 5
- Exporting Items
- Insulated Wires and Cables
- Diodes/Transistors and
Similar Semiconductor Devices
Integrated Circuits
Check Points
- Tariff
- MFN
- GSP
- Rate
- 2.1%
- 0%
The Philippines can enjoy tariff benefits over competing countries like China by applying GSP rates to the respective items.