UK asks RP to lower tariff on EU whisky

Tuna for scotch whisky?

The Philippines may be complaining about the European Union’s high tariff on Philippine tuna, but EU members have their own complaint about the Philippines’ high tariff on its scotch.

According to Eammon Staunton, first secretary for trade and investment of the British Embassy, EU member countries are also complaining about the Philippines’ 50 percent to 100 percent tariff imposition on EU scotch, while granting more market access to US scotch.

Philippine canned tuna is currently slapped with a 24-percent tariff by the EU, while it grants duty-free access to tuna exports from Africa, the Caribbean and Pacific countries.

The Philippines has elevated its protest to the World Trade Organization (WTO) for mediation.

According to Staunton, the United Kingdom supports the Philippines’ bid for lower tariff for its canned tuna.

However, he pointed out, the Philippines must also address the EU’s call for lower tariff on its scotch whisky products.

Staunton stressed that the EU is not necessarily asking for a trade-off since the Philippines’ scotch whisky treatment is more complicated. Scotch Whisky, aside from the high tarrif imposition, is also subject to an excise tax.

The excise tax issue would need legislation by Congress.

The EU had elevated its own complaint against the Philippines to the WTO.

The Philippines is trying to gain more market access for canned tuna since most of these are exported from Mindanao where the government is trying to improve economic conditions and fight a growing terrorist threat partly fueled by long economic neglect by the government.