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The World Trade Organization (WTO) panel hearing the complaint of the Philippines against Thailand over the latter’s cigarette tax system is set to rule on the case next month, according to Trade Assistant Secretary Jose Antonio Buencamino.

Buencamino also said the Philippines will start on February 23 in Geneva its consultation with the United States on the latter’s complaint against the Philippines’ excise tax system on distilled spirits. The Philippines is also locked in a similar dispute with the European Union over what the US and EU claim is a discriminatory tax system.

Buencamino said the WTO panel created in 2008 to hear the Philippines-Thailand cigarette tax row will issue its interim report sometime in March for consideration of the dispute settlement board (DSB).

Exports of Philip Morris Philippines Manufacturing Inc. (PMPMI) to Thailand declined 20 percent after the latter slapped a bond on imports.

"The issue is predictability. The (cost) differential is a financial burden. But we are hopeful that the panel agrees with the Philippine government which has put forward a strong case," said Chris Nelson, PMPMI managing director, in an earlier interview.

The Philippines has raised issues of transparency, discrimination, and domestic protection against Thailand for its tax regulation on imported cigarettes.

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