THAILAND declined to discuss at the World Trade Organization (WTO) its dispute with the Philippines over the latter’s cigarette exports, further prolonging the 12-year trade saga.
The WTO had included on the agenda for its Feb. 28 meeting a discussion of customs and fiscal measures connected to Philippine cigarette exports to Thailand.
The Philippines first complained in 2008 of Thailand’s customs valuation on cigarette imports, which the WTO decided in favor of the Philippines in 2010.
The Department of Trade and Industry (DTI) said in November that it is considering retaliatory measures for Thailand’s non-compliance with the WTO ruling. DTI said it may impose quantitative restrictions or tariffs on Thai automotive exports to the Philippines.
Thailand wrote to the WTO on Feb. 26 seeking the removal of the agenda item, saying that such discussions fall outside the required timeframe.
The Philippines called the Thai move “a transparent attempt by Thailand to prevent the Philippines from exercising its rights” in its own letter to the WTO.
The Philippines cited a previous WTO decision indicating that procedural rules should not block meetings where a member has a right to request a decision.
In a statement, the Philippine Mission to the WTO said that Thailand prevented the WTO from granting the Philippines the right to retaliate.
The Philippine mission said the country has reached out to Thailand to settle the dispute three times between September 2019 to January 2020.
“The Thai blockage of the agenda throws the WTO system into further disarray,” it said.
The WTO’s appellate body was effectively suspended after Dec. 10, 2019 after the United States blocked the appointment of new appellate judges.
Trade Secretary Ramon M. Lopez said in the statement that the Philippines will continue to pressure the WTO to make a decision.
“What we are fighting for is the relevance of a responsive WTO. This is critical to show the world that countries who follow the rules, are also protected by the WTO,” he said.
He told reporters Friday, prior to news of the removal of the agenda from the WTO meeting, that Thailand had corrected the valuation of cigarette imports. But the Philippines may continue its retaliatory measures on account of the previous valuations.
“We want WTO to show also that the system is working and that it’s a way to implement the rules and that the WTO is really the custodian of fair trade,” he said.
Thailand in its procedural objections said that disregard for the rules “would only further aggravate the already delicate WTO dispute settlement system.”
The dispute settlement meeting is expected to resume on March 5, after consultations on Thailand’s procedural objections. — Jenina P. Ibañez
