Bridges Weekly Trade News Digest • Volume 12 • Number 39 • 19th November 2008
WTO Panel to Investigate Thai Duties on Foreign Cigarettes
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The WTO convened a panel on Monday to investigate a complaint from the Philippines over Thailand’s import duties on foreign cigarettes.
Manila argued that the taxes violated global trade rules and unfairly discriminated against its cigarette exporters.
The Thai Tobacco Monopoly (TTM), whose cigarettes are bought by approximately 80 percent of the Thai market, is the only entity that Bangkok has authorised to produce cigarettes in the country. The Philippines, a major cigarette exporter, argued that the links between the Thai government and TTM “create serious conflicts of interest.”
But Bangkok maintains its customs and fiscal laws are consistent with WTO rules and it has sought to settle the matter through bilateral negotiation. However, talks with Manila in April and again in September have failed to produce a mutually satisfactory result.
Indeed, the two countries have been in discussion over the matter since February. Manila’s September request for a WTO panel (WT/DS371/3) was rejected by Bangkok, which asked to be granted time to continue consultations outside of the official dispute process. But according to WTO procedures, upon the second request, the WTO dispute settlement panel is automatically established - as was the case on Monday.
The panel now has nine months to come to a decision.
ICTSD reporting; “WTO starts investigation of Thai cigarette rules,” REUTERS, 17 November 2008; “WTO probes Thai barriers to foreign cigarettes,” ASSOCIATED PRESS, 17 November 2008.
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