Phl may haul back Thailand to WTO arbitration

MANILA, Philippines - The Philippines may consider taking actions, possibly bringing back Thailand to arbitration, if it is unable to put in place reforms on cigarette taxes in line with a World Trade Organization (WTO) ruling.

In a statement, the Permanent Mission of the Philippines to the WTO said that during the meeting of the WTO Dispute Settlement Body (DSB) last week, it continued to push for Thailand’s compliance with the ruling on the case concerning the latter’s unfair tax treatment of cigarette imports from the Philippines.

“The Philippines urged Thailand to expeditiously pursue further bilateral engagement, in the absence of which appropriate steps will be taken shortly by the Philippines,” it said.

During the meeting, Thailand reported on the status of its implementation of the recommendations and rulings adopted by the DSB.

Thailand said it is continuing to engage with the Philippines on the concerns the latter may have.

Thailand likewise stated it was in the process of scheduling further informal bilateral meetings.

The Philippine Mission cited however that since February, it has yet to be informed of progress toward resolution of the remaining WTO inconsistencies.

In January, the Philippine Mission noted that the outstanding issues in the dispute include the ruling by the Thai Customs’ Board of Appeals that raises numerous concerns under the Customs Valuation Agreement and the GATT (General Agreement on Tariffs and Trade) 1994.

It also said Thailand’s reference to additional guidance from its Revenue department concerning amended value-added tax rules raises questions of WTO-consistency.

The Philippine government filed a case against Thailand before the WTO after the latter charged higher duties on cigarettes from PhilipMorris Philippines on suspicion of undervaluation of goods.

The WTO through its ruling on the case, gave Thailand until May 15 of last year to implement reforms on customs valuation and taxes.

Thailand was likewise given until October 15 last year to amend its laws to make sure that value-added tax applies to both local and imported goods.

The next meeting of the DSB is scheduled on March 26.