Thailand
Philippines, Thailand ink procedures to settle cigarette tax dispute
MANILA, Philippines — The Philippines and Thailand have taken positive steps to resolve outstanding issues in relation to a cigarette tax dispute through the signing of an understanding on agreed procedures.
In a statement, the World Trade Organization (WTO) said the two countries signed a bilateral “Understanding on Agreed Procedures Towards a Comprehensive Settlement of the Dispute in Thailand – Customs and Fiscal Measures on Cigarettes from the Philippines (DS371)” last June 7.
The understanding was signed by the Philippines and Thailand’s respective permanent representatives to the WTO in Geneva, Amb. Manuel Teehankee and Amb. Pimchanok Pitfield.
The signing of the understanding on agreed procedures is a result of the facilitator-assisted process that commenced between the two countries last year which had Amb. George Mina, permanent representative of Australia to the WTO, as facilitator.
As part of the signed understanding, the two countries have agreed to establish a bilateral consultative mechanism (BCM) to serve as a channel to hold a regular dialogue to build further confidence to reach a comprehensive settlement of the cigarette tax dispute, in line with their rights and obligations under the WTO agreements, as well as the recommendations and rulings of the Dispute Settlement Body.
The signing of the understanding on agreed procedures underscores the commitment of both parties to continue to work together through a frank and open dialogue process under the BCM.
The understanding which entered into force upon signing, may be terminated by either party on 60-days written notice.
“This bilateral understanding shows the good faith and strong commitment among ASEAN (Association of Southeast Asian Nations) partners to resolve their differences and support the WTO’s rules-based dispute settlement system,” Trade Secretary Ramon Lopez said in a statement.
He said Thailand and its government agencies, including its judicial branch, have shown positive progress toward upholding WTO rules and the customs valuation agreement.
“Throughout the facilitation process, the Philippines and Thailand have actively and constructively engaged in discussions, both in Geneva and through their respective capitals and demonstrates the commitment of the parties to the WTO Dispute Settlement System,” Mina said.
To recall, the Philippines filed a case against Thailand before the WTO in 2008 for the latter’s imposition of higher duties on cigarettes from the Philippines.
While the WTO ruled in favor of the Philippines, there have been concerns over Thailand’s compliance to recommendations and the ruling.
Source: https://www.philstar.com/business/2022/06/13/2187888/philippines-thailand-ink-procedures-settle-cigarette-tax-dispute