U.S. extends GSP privilege

U.S. extends GSP privilege

MANILA (Dow Jones): The U.S. has extended the Philippines' trade privilege under generalized systems of preference, or GSP, until September 2001.

Extension of the GSP status, which lapsed in June, came amid rising concerns that export earnings under the GSP program have been steadily declining, while general exports are on the rise.

Trade officials didn't give a specific reason for the decline.

Trade Secretary Jose Pardo said the multiyear extension should push local exporters and manufacturers to improve the quality of local products in order to compete with other the exports of other nations in the GSP program.

GSP, which is usually renewed every year, allows duty-free treatment to specific items coming from developing countries. Among the Philippine products exported to the U.S. under the GSP program include cordless phones, wrist watches, ignition wiring for vehicles, aircraft and ships, and metal products.