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PHL wants to keep ties with Thailand despite WTO ruling on export row


Despite Malacañang's elation over the World Trade Organization's siding with the Philippines in the tobacco export dispute with Thailand, the Palace last Friday expressed hope the ruling would not strain relations between the two countries. “We are hopeful hindi magkakaroon ng epekto sa napakagandang relasyon sa ating kapitbahay na Thailand. Ang dispute mechanism sa WTO are there to resolve trade issues tulad ng inakyat natin at yan ang nangyari," Deputy president spokesperson Abigail Valte said. She added that in filing a complaint with the WTO, the Philippine government only wanted to level the playing field for Filipino tobacco farmers. In 2008, the Philippines filed complaint against Thailand because Bangkok allegedly violated WTO rules by imposing unfair trading practices on Philippine cigarette exports. By September of that year, the Philippine requested for a panel to discuss the issue. The WTO Dispute Settlement Body released on November 15, 2010, its official report findings in favor of the Philippines, “that Thailand acted inconsistently with WTO rules in valuing Philippine cigarette exports for customs purposes and in failing to treat imported cigarettes the same way as locally-manufactured cigarettes." In late 2010, the WTO ruled in favor of the Philippines. In the November 15, 2010 decision, the WTO said "that Thailand acted inconsistently with WTO rules in valuing Philippine cigarette exports for customs purposes and in failing to treat imported cigarettes the same way as locally-manufactured cigarettes." The WTO then ask the Thailand government to "bring its inconsistent measures into conformity with its WTO obligations." The Philippines alleged that Thailand's custom valuation's practices, excise tax, health tax, TV tax, value added tax (VAT) regime, retail licensing requirements and import guarantees imposed on cigarette importers were affecting Philippine exports. According to the complaint, the measures instituted by the Thai government were violating the General Agreement on Tariffs and Trade (GATT) 1994. — with a report by Bea Cupin/LBG, GMA News

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