WTO to mediate tuna row between RP-Thailand, EU

The Philippines, Thailand and the European Union (EU) have finally agreed on the terms of reference (TOR) for the settlement of the controversy arising from the alleged discriminatory treatment by the EU of canned tuna shipments from the Philippines and Thailand.

With the signing of the TOR for the mediation process, World Trade Organization (WTO) director-general Supachai Panitchpakdi will meet with the parties concerned within 10 days to listen to their views, assess the resources to be devoted to the process, help form an advisory opinion and establish a timetable for the mediation.

The Philippines has long challenged the EU’s practice under the WTO of granting preferential tariff treatment in favor of certain countries in the African, Caribbean and Pacific (ACP) regions.

Under the WTO, the Most Favored Nation (MFN) principle must be practiced in all instances unless there are exceptions.

The Philippines claims that the preferential treatment given to ACP countries on canned tuna is not equally enjoyed by imports from the Philippines.

Canned tuna from the ACP enjoy duty-free access to the EU, while canned tuna from the Philippines are slapped a 24 percent tariff.

Industry observers said that as a result of this lopsided treatment, the country’s market share in the fast growing European market continued to remain flat.

The EU has defended its preferential scheme by claiming that it is part of its effort to help least developed countries in ACP.

The Philippines, however, debunks such claim since almost half of all ACP countries do not belong to the category of least developed countries.