Stronger PH action urged vs Thailand in cigarette case

THE PHILIPPINE government should engage Thailand in another legal battle to safeguard the favorable ruling the country received from the World Trade Organization (WTO) back in 2011 as well as the interests of the local tobacco industry.

Legal expert Anthony Amunategui Abad said, “The government should seriously pursue a compliance case and, in the meantime, still leave option for discussions with Thailand. It’s high time (that the Philippines should) file this case to show the seriousness of the country and its responsibility to the dispute settlement system mechanism.” Abad is the former legal counsel of Philip Morris in the WTO case.

Abad said a compliance case brings together anew the dispute settlement panel that decided on the original case. WTO rules provide penalties in case of noncompliance, including trade sanctions against the losing party.

The 2011 ruling determined that Thailand slapped higher taxes on cigarette brands from the Philippines. The Philippines filed the case in favor of Philip Morris Philippines Manufacturing Inc. (now Philip Morris Fortune Tobacco Corp.).

Another tax evasion charge was recently slapped against Philip Morris Thailand Ltd., but Philippine officials only engaged its Thailand counterparts in bilateral talks.