The Philippines and Thailand have been encouraged to resolve their rift over cigarette taxes in an amicable manner although Manila still has the option to go for retaliation.
Trade Secretary Ramon Lopez yesterday said the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) met on March 4 where the body encouraged the two parties to “have constructive engagement” or go through further arbitration over Bangkok’s failure to implement WTO’s ruling on its discriminatory valuation of cigarettes.
The retaliation is in the form of additional duties on imported motor vehicles from Thailand, the country’s largest source of completely built-up units.
The DSB was reconvened after it suspended a February 28 meeting due to a disagreement between the Philippines and Thailand regarding the Philippines’ request to impose such retaliatory measures.
Thailand, at the start of the meeting, said it could not accept the adoption of the meeting agenda without the removal of the Philippine request for DSB authorization to suspend concessions against Thailand, saying the Philippine request was not proper because of ongoing appellate proceedings.
Thailand further said the Philippines’ request highlighted the urgent need to resolve the Appellate Body crisis.
The Philippines responded that it had parallel rights to suspend concessions against Thailand.
The Philippines noted the long period of time that had lapsed since it initiated the dispute in 2008, and since the DSB had adopted the original panel and Appellate Body reports in 2011.
