Philippines

The Philippines was granted GSP+ status on 25 December 2014. As is required for GSP+ beneficiary countries, the country has ratified all 27 international conventions on human rights, labour rights, protection of the environment and good governance. The Philippines is classified as a lower-middle income economy with a per-capita income of $3,985 in 2024. Total EU imports from the Philippines amounted to €9.1 billion in 2024, the largest amount among all GSP+ countries; preferential imports using the GSP+ reached €2.3 billion in 2024, making the Philippines the second largest beneficiary of the GSP+ arrangement, after Pakistan.

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What is the GSP+?

The GSP+ is a special incentive arrangement for Sustainable Development and Good Governance that supports vulnerable developing countries. Next to fulfilling the eligibility requirements of the Standard GSP, GSP+ countries are required to ratify 27 international conventions on human rights, labour rights, environmental protection and climate change, and good governance. In order to ensure effective implementation of the conventions as well as compliance with reporting obligations, the EU engages in monitoring activities with the GSP+ countries. GSP+ beneficiaries can benefit from complete duty suspensions for products across approximately 66% of all EU tariff lines.

At a glance: EU preferential imports from GSP+ beneficiary countries (2024, € million)

group

115.8M (2024)

Population

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Presidential Republic

Government

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5.7% (2024)

GDP Growth

equalizer

3.2% (2024)

Inflation

money

$ 461.6B (2024)

GDP

Facts about the Philippines' economy

Island Economy

The Philippines is a vulnerable island economy, which is strategically well located in close proximity to major regional markets. The location comes with a downside as the country is struck by five to six cyclonic storms every year. Landslides, recurring earthquakes, active volcanoes, and tsunamis pose additional risks to the Philippines.

Export Products

The Philippines' most important export products are electronic integrated circuits, storage units and other electronic parts. Coconut oil and fruit (especially bananas) are important agricultural export products.

Trade Partners

China (19% of total trade in 2024), followed by the US and Japan (9% each) are teh Philippines' most important trading partners. The US, followed by Japan, Hong Kong, and China, are the most important export destinations for products from the Philippines, and China is the most important supplier.

Economic Structure

Services account for 63% of the GDP (2024), followed by the industrial sector (28%). Agriculture contributes at 9% to the GDP but employs a quarter of the Philippines' population. The industrial sector focusses on the assembly of semiconductors and electronics, food processing, construction, textile, and garments, as well as basic metallic industries.

Coconut Production

The Philippines is the world's second largest coconut producer with a production volume of about 14.9 million metric tonnes in 2023.

Trade with the EU

Total EU trade with the Philippines amounted to €14.8 billion in 2024. With a share of 7% of the Philippines' overall trade, the EU is the fourth most important trading partner.

The Philippines and the EU

Imports from the Philippines by product section (2024, € million)

Imports from the Philippines over time (€ million)

THE PHILIPPINES AND THE EU GSP

Economic Impact

32%

Share of the Philippines' exports to the EU that were eligible for GSP+ preferences in 2024.

80%

The Philippines's preference utilisation rate in 2024.

92%

Share of zero-duty imports from the Philippines in 2024. Most imports are duty-free under normal EU tariffs.

Preference utilisation and export diversification

EU imports from the Philippines (€ million)

Preference utilisation (%) vs. total eligible imports (in € million)

GSP+-eligible imports from the Philippines have shown an upward trend over the years, reaching an all-time high of €3.8 billion in 2022 (although then dropping to €2.7 billion in 2023 and €2.8 billion in 2024). The preference utilisation rate also increased over the longer term, from less than 70% around 2014 to 80% in 2024. Across product groups, fish & meat preparations, chemicals, and footwear all have utilisation rates above 90%, whereas the largest product group, machinery, had a below-average utilisation rate of 75% in 2024.

The largest product sections under the GSP+ (€ million, 2024)

EU preferential imports from the Philippines are relatively diversified. Imports of machinery in 2022 replaced vegetable oils as the most important product group, and held the first position also in 2024. Fish and meat preparations as well as food preparations are other important product groups as well as chemical products.

SUSTAINABLE DEVELOPMENT AND MONITORING PRIORITIES

The current government has affirmed its commitment to the compliance with the GSP+ commitments since it came into power in 2022. Recent dialogue under the GSP+ framework as well as in other fora has been constructive and the Philippines has taken several steps to address points of concern.

Over the period 2023 to 2025, the following positive developments were noted:

  • Human rights: The administration has restructured its human rights architecture with the establishment of the Special Committee on Human Rights Coordination and approved a new multi-annual Human Rights Action Plan in 2024.
  • Labour rights: The Philippines has made some progress with regards to the implementation of labour rights notably on labour inspections and on freedom of association.
  • Environment/Climate: Several important reports were submitted.
  • Governance: Drug policy continued to shift from an excessively punitive approach towards a more balanced, health-based and people-centred model.

Remaining issues and priorities for future engagement are:

  • Human rights: Concerns around persistent impunity and low levels of accountability for extrajudicial killings and other human rights violations and abuses remain, while some civil society, human rights defenders and media professionals are subject to pressure. Concerns have been expressed that anti-money laundering and counter terrorism financing laws may still be used in ways that restrict civic space.
  • Labour rights: Further progress is needed to address very serious issues raised in relation to Freedom of Association and Protection of the Right to Organise. Positive efforts on forced and child labour need to be effectively monitored and evaluated.
  • Environment/Climate: The Philippines’ 2035 Nationally Determined Contribution is still due and monitoring bodies point to persistent challenges in implementation, enforcement outcomes, and data transparency, particularly at sub-national level and in sectors exposed to high environmental and climate risks.
  • Governance: Persistent concerns regarding human rights violations, corruption within law-enforcement institutions, and social stigma associated with drug use continue to hinder the establishment of a fully effective and rights-based drug control system. Significant reforms remain necessary to strengthen transparency and oversight in public spending and procurement, and ensure independent investigation and prosecution of corruption cases, in particular those involving high-level officials.

For more information about the Philippines’ compliance with the GSP conventions, see the convention compliance database. Also see the factsheet on the Philippines.

Monitoring priorities during the reporting period 2024-2025

Accountability for extra-judicial killings, enforced disappearances, and red-tagging

Human rights defenders, freedom of the media and of expression

National preventive mechanism on torture

Freedom of association

Forced labour

Protection of minors and vulnerable individuals

Protection against labour discrimination

Implementation of climate conventions

Implementation of CITES and Cartagena Protocol on Biosafety

Drug control strategy

Anti-corruption

For the reporting period 2024-2025, the EU has focussed its monitoring activities on eleven priority areas. The conclusions from the previous mission, which took place when the former administration was still in power, showed a mixed picture with some positive developments under economic and social rights but continued violations of civil and political rights.