Phl remains concerned over Thailand’s WTO compliance

MANILA, Philippines - The Philippines remains concerned with Thailand’s compliance to the World Trade Organization’s (WTO) ruling on a case covering imported cigarettes as some issues remain unsolved.

In a statement posted on its website, the organization said that during the last meeting of the WTO Dispute Settlement Body (DSB) last Aug. 29 the Philippines provided an update on Thailand’s customs and fiscal measures imposed on cigarettes imported from here.

“The Philippines reiterated its concern that there were a number of outstanding issues that called into question Thailand’s compliance with the DSB’s recommendations and rulings in this dispute,” the WTO said.

“In its view, as long as issues remained outstanding, there were only two alternatives — continue surveillance in the DSB or return to dispute settlement,” it said further.

Trade Undersecretary Adrian Cristobal, Jr. said earlier the Philippines is concerned with the decision of the Thai attorney general to prosecute a Thai importer of Philippine cigarettes and several of the importer’s current and former employees for alleged under declaration of customs values from 2003 to 2007.

He said the Philippine government wants to get more information to determine whether the customs transactions covered by the WTO ruling are also included in the case that the Thai government intends to prosecute.

The WTO ruled in 2011 that Thailand’s imposition of taxes on imported cigarettes from the Philippines was discriminatory and in violation of global trading rules.

As such, Thailand was ordered to put in place reforms on customs valuations and taxes.

The WTO issued the ruling following a case filed in 2008 by the Philippine government on behalf of Philip Morris Philippines against Thailand for imposing higher duties on cigarette imports from here.

Cristobal said the Philippines wants to ensure the country’s victory in WTO will not be rendered useless by a domestic ruling.

Meanwhile, the WTO said Thailand has stated that it has complied with the WTO ruling.

“Thailand reiterated its view that it had taken all actions necessary to implement the DSB’s recommendations and rulings in this dispute and did not find it necessary to submit status reports,” the WTO said.