The Philippines will seek compensation from Thailand once it finds out the Southeast Asian country failed to comply with an earlier ruling by the World Trade Organization correcting the taxation scheme for Philippine-made cigarettes.
Trade Undersecretary Adrian Cristobal said a team would be sent to Thailand to verify if that Southeast Asian country failed to meet the May 15 deadline for compliance.
“We are vigilant on our tobacco case against Thailand. If necessary, we will go for the issue on compensation,” Cristobal said.
Article 22 of the WTO said compensation and the suspension of concessions or other obligations are temporary measures available in the event that the recommendations and rulings are not implemented within a reasonable period of time.
Cristobal said on July 15, 2011, the WTO ruled that Thailand was in breach of its obligations with respect to the customs and tax treatment of cigarettes produced in the Philippines.
Thailand said it intended to implement the WTO rulings and sought a reasonable period to do so until May 15, 2012.
Article 22 said that in considering what concessions or other obligations to suspend, the complainant (in this case the Philippines) “should first seek to suspend concessions or other obligations with respect to the same sector(s) as that in which the panel or appellate body has found a violation or other nullification or impairment.”-Manila Standard Today (June 27, 2012)
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