A joint staff working document published by the European Commission on 16 July 2026 assesses the Philippines' compliance with the EU's Special Incentive Arrangement for Sustainable Development and Good Governance (GSP+) for the period 2023-2025, finding progress in some areas but persistent gaps in human rights, labour rights, environmental governance, and anti-corruption enforcement. The Philippines has been a GSP+ beneficiary since 2015, and the utilisation rate of the scheme reached 80.4% in 2024, the highest recorded. EU imports from the Philippines fell 8.5% annually from EUR 10.4 billion in 2022 to EUR 8.8 billion in 2024, while GSP+ eligible imports declined 14.3% annually to EUR 2.8 billion. In 2024, the Philippines benefited from an estimated EUR 155 million in tariff exemptions.
The document, accompanying the Joint Report to the European Parliament and the Council on the Generalised Scheme of Preferences covering 2023-2025, notes positive steps including the restructuring of the human rights architecture, the adoption of a new Human Rights Action Plan in 2024, and the ratification of ILO Convention No 81 on labour inspection and the Violence and Harassment Convention No 190 in 2024, making the Philippines the first Asian country to ratify the latter. However, persistent concerns include impunity for extrajudicial killings, pressure on civil society and journalists, red-tagging of activists, low collective bargaining coverage at 1.4%, and pending anti-discrimination laws. On the environment, the 2035 Nationally Determined Contribution is still due, and enforcement gaps remain at the sub-national level. On good governance, the drug policy is shifting toward a health-based model, but corruption and rights violations continue.
ensuring accountability for abuses during the war on drugs, investigating violence against trade unionists, enhancing environmental coordination, and enforcing anti-corruption laws. The document concludes that the Philippines broadly meets its GSP+ obligations but must address serious human rights, labour, and governance enforcement gaps to maintain eligibility.
EU producers and importers benefit from continued tariff preferences, though declining trade volumes may reflect broader economic factors. Philippine exporters, particularly in sectors like agriculture and textiles, gain competitive advantage from tariff exemptions. Philippine civil society and human rights defenders face ongoing risks, while the government is under pressure to improve enforcement. EU taxpayers see limited direct impact, but the assessment reinforces the EU's leverage for governance reforms.
The European Parliament and the Council will consider the joint report and may raise concerns or propose adjustments to the GSP+ framework. The Commission will continue monitoring the Philippines' compliance, with the next assessment due before the scheme's renewal in 2027.