Garments maker, CS Garment Inc. one of the first companies to take advantage of the EU GSP+ announced it is expanding operations and hiring an additional 100 employees.
CS Garment , operating at the Cavite Export Zone , caters to the European market and produces five of the top luxury brands known worldwide.
EU Ambassador Guy Ledoux, DTI Secretary Gregory Domingo and Philippine Economic Zone Authority (PEZA) Director General Lilia De Lima toured the garment plant on Wednesday with CS Garment chief executive officer Claus Sudhoff.
EU Ambassador Guy Ledoux said that the visit shows, foreign and domestic investors will put more resources in the Philippines, in facilities that produce the goods benefiting from zero percent tariffs. This will translate into more competitiveness for the Philippines and more jobs for Filipinos.
The EU GSP+ is a special incentive arrangement that provides zero duties to more export products from beneficiary countries like the Philippines. The program, according to a study by the Department of Trade and Industry (DTI), will increase Philippine exports by at least 600 million euros during the first year of availment.
The following product sectors will be particularly benefitting: animal or vegetable fats and oils; prepared foodstuffs; textiles and garments; footwear, headwear, and umbrellas; and chemical products.
The projected increase in exports is also expected to translate to about 267,000 jobs in both the agriculture and manufacturing sectors mostly in the rural areas and expecting a multiplier effects.
“PH-EU trade has been increasing steadily over the last years and 2014 will see a new record: My estimate is that overall trade will reach over 12 billion euros in 2014, with EU exports (goods) to the Philippines increasing by another 25 percent and Philippines exports to the EU by 10 percent compared to last year, reaching close to 6 billion euros,” he said.
The EU represents about 30 percent of total Foreign Direct Investment to the Philippines, creating around 450,000 jobs.
During the first half of 2014, EU FDI flows to the Philippines went up by more than 150 percent, focusing on productive sectors such as energy, manufacturing, transport/logistics and electronics.