WTO compliance issue rumbles on between the Philippines and Thailand

The Philippines is putting further pressure on Thailand to comply fully and in a timely manner with a World Trade Organization ruling in respect of a cigarette excise tax dispute between the two countries, according to a story in the Manila Bulletin.

This follows the Philippines’ implementation of a new excise tax law on distilled spirits and tobacco products that has brought it into compliance with a separate WTO ruling.

The WTO had ruled in favor of the EU and the US that the Philippines should correct its ‘discriminatory’ tax structure on imported distilled spirits.

The Philippines’ Trade and Industry undersecretary, Adrian S. Cristobal Jr, said the passage of the new excise tax law had shown that the Philippines was a law abiding member of the WTO.

At the same time, he stressed that this structural reform had strengthened the country’s position whereby, as a WTO member, it could command the same compliance from other member states.

“It shows that we are abiding by international treaty, the WTO in particular, but that is a two-way street,” Cristobal said. “This also strengthens our position that as a member of WTO we also command compliance from other member states.”