Philippines-Thailand trade dispute reignites

    Photo: hectorgalarza from Pixabay

    The Philippines has asked the World Trade Organization (WTO) dispute settlement body (DSB) to suspend the country’s concessions to Thailand for products such as motor vehicles exported to Manila.
     
    Thailand has continued to avoid compliance with the WTO ruling that it must align its unfair tax treatment on Philippine cigarette exports, according to the Philippines.
     
    “There are only two options under the reverse-consensus rule of DSU Article 22.6: the DSB granting authorization to suspend concessions or the DSB referring the matter to arbitration,” said the Philippines. “At this meeting of the DSB, the Philippines asks once again that the DSB grant the Philippines the authority it seeks.”
     
    The Philippines sought retaliation against Thailand from the WTO to force the country to align its tax treatment on Philippine cigarettes in February 2020. The WTO first ruled favorably in 2011 and the Philippines won subsequent appeals from Thailand. The Philippines requested from the WTO a suspension of $594 million in trade concessions.