Phl gives Thailand until next month to reply to WTO cigarette ruling

MANILA, Philippines - The Philippines is giving the Thai government until next month to address issues in relation to its full compliance on the World Trade Organization’s ruling on a cigarette tax case. 

Trade Undersecretary Adrian Cristobal Jr. told reporters the Philippines needs to wait for Thailand’s explanation on why it has yet to fully comply with the WTO’s order until next month.

“We are waiting for Thailand to answer...That will determine our decision,” he said.

He said that if Thailand is unable to address the issues and  provide explanation for not being able to fully comply with the ruling, the Philippine government may move for formal proceedings under the WTO which will enforce Thailand’s compliance to the order.

“I think we will know by November if we will pursue compliance,” he said.

In the past meetings of the WTO’s Dispute Settlement Body, the Philippines has continued to raise the issue that Thailand has not been able to address concerns which relate to the actions of certain governmental agencies that appear to make findings on Customs valuation issues without operating under the WTO Customs Valuation Agreement.

The Philippine government has been engaged in bilateral discussions with Thailand in Geneva through respective WTO missions to be able to monitor its actions in relation to the WTO ruling.

In 2011, the WTO ruled that Thailand should implement reforms on Customs valuation and taxes as it was found to be charging higher duties on cigarettes from Philip Morris Philippines.

The ruling was issued as the Philippines filed a case in behalf of Philip Morris against Thailand before the WTO in 2008.

Thailand was given a reasonable period for time to comply with the ruling.

The first deadline given to Thailand was in May 15 of last year.