RP to use EU case argument
in US suit on distilled spirits
The Philippines will use the same line of defense it has been employing with the European Union (EU) when it negotiates with a new complainant over its tax system on distilled spirits—the United States.
The USTR Thursday last week filed a World Trade Organization (WTO) challenge against Philippine excise taxes on alcohol that it said discriminate against US-made brands, particularly whisky and gin.
Manuel A.J. Teehankee, the Philippines permanent representative to the WTO, said the Philippines would continue to balance the interests of the country’s farmers affected by the tax regime.
Teehankee also reiterated that just like in the EU case, the local spirits produced from very specific type of homegrown produce cater to a different market than the US products.
"The Philippines notes that this issue has implications for distilled spirits from very specific type of produce like nipa, coconut, cassava, camote, buri palm, and sugar cane, which are home-grown by Filipino farmers as well as other nations’ farmers. We will continue to balance these farmers’ interests against our obligations under existing multilateral trading agreements such as GATT (General Agreements on Tariffs and Trade) 1994.
Teehankee noted that if one takes a look at the products involved, their prices, and the consumers they cater to will show that EU or US products are in an altogether different market from those targeted by local brands.
But Teehankee said the Philippines is ready to conduct consultations with the US in pursuant to commitments to WTO. - Irma Isip
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