DSB Meeting Suspended Over Disagreement between the Philippines and Thailand in Cigarette Dispute

The Dispute Settlement Body (DSB) meeting on 28 February was suspended due to a disagreement between the Philippines and Thailand regarding the Philippines’ request to impose retaliatory measures on imported Thai goods. The request stems from their dispute in DS371, “Thailand — Customs and Fiscal Measures on Cigarettes from the Philippines”.

Thailand, at the start of the meeting, said it could not accept the adoption of the meeting agenda without the removal of the Philippine request for DSB authorization to suspend concessions against Thailand under Article 22.2 of the Dispute Settlement Understanding as a result of the DS371 proceedings

Thailand said the Philippine request was not proper because of ongoing appellate proceedings involving earlier Article 21.5 compliance panel reports. Thailand further said the Philippines' request highlighted the urgent need to resolve the Appellate Body crisis.

The Philippines responded that it had parallel rights to both Article 22.2 and Article 21.5 and could suspend concessions against Thailand. The Philippines noted the long period of time that had lapsed since it initiated the dispute in 2008, and since the DSB had adopted the original panel and Appellate Body reports in 2011. The Philippines said that Thailand was preventing the Philippines from exercising its full rights. It said Thailand's request to remove this issue from the meeting agenda should be rejected.

The DSB chair, Ambassador David Walker (New Zealand), then proposed suspending the meeting to allow more time for consultations between parties. He said he will reconvene the DSB on 5 March at the latest.