Philippines and Thailand Sign Agreement Aimed at Settling Customs Valuation Dispute

The Philippines and Thailand signed a bilateral "Understanding on Agreed Procedures Towards a Comprehensive Settlement of the Dispute in Thailand -- Customs and Fiscal Measures on Cigarettes from the Philippines (DS371)," the World Trade Organization announced. The document marks the success of a facilitator-aided process that kicked off in 2021 and reflects both countries' will to bring their customs valuation practices into compliance with WTO and domestic law commitments.

The two countries agreed to set up a bilateral consultative mechanism (BCM), which the nations' customs authorities will use "with the objective of building further confidence that will support them to reach a comprehensive settlement of their dispute," the WTO said. Either party can terminate the agreement with 60 days' written notice.