Philippines Cuts Thailand Slack over Tobacco Tax Dispute

Source from:  InterAksyon.com 09/22/2014

The Philippines is cutting Thailand some slack over a tobacco tax dispute that has been dragging on for years.

"Out of consideration on developments in Thailand, we have given this issue some time. Now they have a new government, we are assessing our options," Trade Undersecretary Adrian Cristobal Jr. told reporters last week.

The Philippines in 2008 sued Thailand before the World Trade Organization (WTO) for allegedly imposing unfair taxes on Philip Morris tobacco products imported from Manila. The WTO in 2011 ruled against Thailand and required it to make changes in its import tax rules, but the Philippines claims compliance remains spotty.

In the meantime, political crisis struck Thailand, with its army chief Prayuth Chan-Ocha deposing the elected government of Yingluck Shinawatra. Last month, the Thai legislature formalized Chan-Ocha's rule.

During an August 29 meeting of the WTO Dispute Settlement Body (DSB), Thailand insisted that it has complied with the ruling.

"Thailand reiterated its view that it had taken all actions necessaryto implement the DSB's recommendations and rulings in this dispute anddid not find it necessary to submit status reports," the WTO said in a report.

The Philippines however disagrees, citing a pending case in Thai courts that involves allegedly under declared cigarette imports between 2003 and 2007.

"They have promised to do some things and we are waiting for the results of that," Cristobal said.

The WTO-DSB will hold its next meeting on the matter on September 26. Enditem