Philippines optimistic on winning cigarette case against Thailand

The Philippines is optimistic the Appellate Body (AB) of the World Trade Organization (WTO) will rule in favor of the Philippines on a cigarette case versus Thailand.

“We are optimistic the Appellate body will uphold a WTO panel ruling on the Philippine cigarette case with Thailand,” said Trade and Industry undersecretary Adrian S. Cristobal Jr.

Cristobal himself went to Geneva last week to respond to an appeal filed by Thailand before the AB. Thailand’s move stemmed from the WTO Panel Report released last November. The WTO ruled in favor of the Philippines saying that Thailand acted inconsistently with the WTO rules in valuing Philippine cigarette exports for customs purposes and failing to treat imported cigarettes the same way as locally manufactured cigarettes.

Cristobal led the Philippine delegation including officials from the Permanent Mission of the Philippines to the WTO, DTI’s Bureau of International Trade Relations, and Philippine government counsel Sidley Austin LLP.

“We will continue to ensure that our exports are competitive. This is why we are strongly defending the WTO Panel’s ruling in favor of the Philippines. The hearing of the tobacco case with Thailand provided an effective opportunity to address both parties’ rights for due process and we are confident that the case will be resolved soon,” said Cristobal.

During the hearing, the Philippines countered the arguments used by the Thais seeking to reverse the Panel ruling.

In 2008, the Philippines requested the WTO to examine Thailand’s customs, fiscal, and health measures imposed on imported cigarettes. Following the substantive meetings, the WTO panel issued a report last year declaring that Thailand acted inconsistently with its WTO obligations.

Tobacco is among the fast growing resource-based exports of the Philippines. Data from the National Tobacco Authority showed that the country’s tobacco exports amounted to US148 million in 2010. Tobacco-growing in the Philippines began in the 16th century during the galleon trade.