WTO to meet this week on Phl-Thai cigarette dispute

MANILA, Philippines - The World Trade Organization Dispute Settlement Body (WTO DSB) is set to meet this week to get an update on issues raised by the Philippines regarding Thailand’s compliance to a ruling concerning taxes imposed on imported cigarettes.

A notice posted on the WTO’s website showed that a status report from Thailand regarding its customs and fiscal measures on cigarettes from the Philippines is part of the agenda of the DSB’s meeting on Wednesday.

In 2011, the WTO ruled with finality that Thailand’s taxes on imported cigarettes from the Philippines violated global trading rules.
As a result, Thailand was ordered to implement reforms on customs valuations and taxes.

The ruling stems from a case filed by the Philippine government on behalf of Philip Morris Philippines against Thailand before the WTO in 2008 for charging higher duties on cigarette exports from here. In October last year, the Philippines posted questions to the Thai
government regarding actions which may violate the WTO ruling.

In particular, the Philippine government wanted Thailand to provide an explanation on information it received that the latter has adopted a decision to prosecute Philip Morris Thailand for alleged underdeclaration of customs value on imports from the Philippines between 2003 to 2007.

Trade Undersecretary Adrian Cristobal Jr. said earlier this month that while Thailand may have complied with recommendations of the WTO DSB, the government wants to make sure the recent development would not go against the WTO’s decision.

“The important thing for us is that the main policy objective is met, that there is no more threat to exports to Thailand but at the same time, we want to make sure the WTO decision is implemented in its entirety,” he said.