Thailand – Customs and Fiscal Measures on Cigarettes
from the Philippines

Recourse to Article 22.2 of the DSU by the Philippines

The following communication, dated 12 February 2020, from the delegation of the Philippines to the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.

_______________

1.       Pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU") and the expiry of the agreed reasonable period of time (RPT) on 15 May 2012, the Philippines hereby requests authorization from the Dispute Settlement Body ("DSB") to suspend the application to Thailand of concessions or other obligations under the covered agreements, covering trade in an amount of approximately USD 594 million annually.

2.       In addition, in respect of certain notification requirements regarding the tax base for value‑added tax ("VAT"), the Philippines seeks authorization to suspend concessions or other obligations in an annual amount based on a formula commensurate with the trade effects to be caused.

3.       The requested level of suspension is equivalent to the level of nullification or impairment of the Philippines' benefits as a result of Thailand's failure to comply with the DSB's recommendations and rulings in this dispute.  The Philippines seeks authorization to update the relevant amounts to account for changes in the circumstances.

4.       In preparing this request, the Philippines has followed the principles and procedures set forth in Article 22.3 of the DSU.  The Philippines intends to take measures in the goods sector under agreements described in Article 22.3(g)(i) of the DSU. 

5.       The Philippines intends to hold public consultations to determine the imported Thai goods to be subject to suspension measures.  The Philippines will provide the DSB with a list of the chosen goods, and the levels of tariffs to be applied, in due course.