Phl gives Thailand time to address issues on WTO ruling on cigarettes

MANILA, Philippines - The Philippine government is giving Thailand time to address issues concerning its compliance to a World Trade Organization (WTO) ruling on a case on imported cigarettes from the Philippines on the back of the latter’s change in political leadership.

“Out of consideration on developments in Thailand, we have given this issue some time. Now they have a new government, we are assessing our options,” Trade Undersecretary Adrian Cristobal Jr. told reporters in a chance interview.
Thai army chief Prayuth Chan-Ocha who took control of the country in a coup that toppled the government of Yingluck Shinawatra, was named prime minister in late August by the legislature.

During the last meeting of the WTO Dispute Settlement Body (DSB) held on Aug. 29, the Philippines said there are still outstanding issues calling into question Thailand’s compliance with the WTO’s recommendations
 and rulings in the dispute.

As long as issues remain, the Philippines said it is looking at two options: to continue surveillance in the DSB or to go to formal proceedings for dispute settlement.

Among the pending issues is the decision of the Thai attorney general to prosecute an 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.

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

In 2011, the WTO ruled that Thailand’s move to impose higher duties 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.

The Thai government said during the Aug. 29 meeting 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.
As Philippine and Thai government officials continue bilateral talks, Cristobal said they would be waiting for the latter’s response on the pending issues.

“They have promised to do some things and we are waiting for the results of that,” he said.

The WTO DSB is set to hold a meeting to get an update on the cigarette case, among others, on Sept. 26, Cristobal also said.