PHL, Thailand to meet, discuss cigarette tax dispute

The Philippines has requested a meeting with Thailand regarding the latter's compliance with a World Trade Organization ruling on the taxation of imported cigarettes, with the discussion expected to determine if the Philippines will seek further arbitration by the WTO. "The request came from Geneva, from Ambassador [Esteban B.] Conejos. They’re arranging a meeting in Bangkok to discuss the issue," Foreign Affairs Undersecretary Laura Q. del Rosario told reporters Monday. "We’re waiting for a common date for the meeting," she added. The two countries are also scheduled to meet with the WTO's Dispute Settlement Body (DSB) again on Tuesday, March 26, after their last meeting with the board on February 27. "We're looking at it as a dialogue since it’s more of their local authority to implement [requirements]. Arbitration can be complicated and it can be costly," said del Rosario. In 2006, the Philippine government filed a complaint at the WTO on behalf of Philip Morris Philippines Manufacturing, Inc., saying that Thailand was in violation of the General Agreement on Tariffs and Trade (GATT) by exempting local brands from administrative requirements. The Philippines also disputed a number of Thai fiscal and customs measures that it said Thailand was administering in "a partial and unreasonable manner." The WTO ruled in the Philippines' favor in 2010, saying, "Thailand treats imported cigarettes less favorably than like domestic cigarettes by imposing additional administrative requirements only on resellers of imported cigarettes." It also upheld the ruling in 2011. According to the WTO, "Thailand and the Philippines informed the DSB that they had mutually agreed on the reasonable period of time for Thailand to comply with the recommendations and rulings of the DSB." It set a deadline of Oct. 15, 2012 for Thailand to comply, with the Philippines later allowing Thailand more time as some of the reforms needed legislation. — BM, GMA News