WTO Panel Report in Thailand – Customs and Fiscal Measures on Cigarettes from the Philippines

12th July 2019, a World Trade Organization (“WTO”) Panel upheld the Philippines’ claims that Thailand violated WTO law on customs violation. The dispute initiated by the Philippines in 2008 affects Philippine exports of cigarettes to Thailand.  Trade and Industry Secretary Ramon Lopez said that “this WTO dispute has been going on for more than ten years now, Thailand has lost all three panel and appellate rulings, and it is about time that Thailand accepts the rulings and implement the customs valuation reforms called for by those rulings.”

This decade-old dispute between Thailand and the Philippines concerns Thailand’s persistent failure to value Philippine exports consistently with the WTO’s Customs Valuation Agreement (“CVA”).  These measures threaten the viability of the private sector both in the Philippines and in Thailand, harm Philippine tobacco farmers, and are inimical to the overall export interests of the Philippines. It also places bilateral relations on a sour note. Mr. Lopez notes that “Thailand is a strong supporter of the WTO multilateral trading system, and currently chairs the WTO General Council. Thailand is also ASEAN host for 2019. Accepting the panel report in this dispute would be a clear demonstration of Thailand’s responsibility and leadership in the WTO and in ASEAN.”

This dispute was initiated by the Philippines in 2008, and is still ongoing because of Thailand’s repeated allegations of under-declaration of the customs value of cigarettes, which are all based on valuation determinations consistently ruled as illegal under WTO rules.  And these unlawful measures threaten criminal prosecution and even the imprisonment of a number of employees of the importer in Thailand, Philip Morris International Thailand (PMTL).

Thailand has now lost three WTO panel proceedings: 

• In the original proceedings, a WTO panel and the Appellate Body ruled in 2010 that the Thai customs valuation measures violated the CVA and other WTO rules. 
• Following this ruling, Thailand brought further new, WTO-inconsistent customs valuation measures against Philippine cigarettes and filed criminal charges against PMTL for under-declaration.  The Philippines successfully brought a first set of WTO compliance proceedings; in November 2018, the WTO compliance panel found that the new customs valuation measures and the first criminal charges violate the CVA. 
• While these proceedings were ongoing, Thailand issued a second set of criminal charges, forcing the Philippines to initiate second WTO compliance proceedings.  This latest WTO panel ruled on 12 July that these second charges also violate the CVA.  

Thailand has yet to implement the WTO rulings, amend its customs valuations policy and practices, and withdraw the two criminal charges which based, in the first instance, on WTO-illegal measures

OTOP HUB OPENS IN DTI MAIN BUILDING, OFFERS 600 PRODUCTS FROM 110 MSMEs

The Department of Trade and Industry (DTI) launched its One Town One Product (OTOP) Philippines Hub at the DTI Main Building in Makati with a Blessing and Buyer’s day on 4 July 2019.

The store features 600 products from 110 local enterprises, mostly processed food, drinks, bags, and handicrafts. These products are developed from the micro, small, and medium enterprises (MSMEs) under DTI’s OTOP Program.

DTI Secretry Ramon Lopez said that to fulfill the vision of President Rodrigo Duterte of better and more comfortable lives for the Filipino people, DTI continues to push for programs that aim to raise MSMEs from the grassroots to the national and international markets, creating more jobs and sharing the prosperity for all.

Buyers from major retailers like Duty Free, Robinson’s, SM, and Waltermart were present at the event to look for products for their stores.

The DTI Main OTOP Hub is open from Monday to Friday, 10:00 am to 6:30 pm and is managed by the Association of Laguna Food Processors (ALAFOP).

In the photo are (from L to R) DTI Secretary Ramon Lopez, Duty Free Philippines Chief Operating Officer Vicente Angala, DTI Assistant Secretaries Demphna Du-Naga and Blesila Lantayona, ALAFOP Chairman and President Clarke Nebrao, and Leon Flores of the Regional Operations Group.

PH to Bridge Trade Gap with Indonesia Through Agri, Auto Parts Exports

BANGKOK – The Philippines (PH) is working to bridge its trade gap with Indonesia by exporting more agricultural products and automobile parts. At the sidelines of the 34th ASEAN Summit on 21-24 June, Department of Trade and Industry (DTI) Secretary Ramon Lopez discussed trade opportunities with his Indonesian counterpart, Minister of Trade Enggartiasto Lukita. The two ministers also agreed to organize a business matching session in Indonesia possibly around August or September 2019.

“President Rodrigo Duterte is pushing for the Philippines to narrow its trade imbalance with Indonesia. Thus we hope that openness from both countries will result in a mutually beneficial trade relationship between the two countries,” said Secretary Lopez. 

In 2018, Indonesia was the PH's 9th major trading partner, with around US$7.27 billion in trade. However, PH imports from Indonesia stood at US$6.40 billion, while PH exports were only at US$866.20 million.

Indonesian company PT Mayora reported that it started importing desiccated coconuts from PH since April 2019. Indonesia is also more willing to import shallots, bananas, and alcoholic beverages from PH.

Secretary Lopez noted that Toyota Fortuner, manufactured in Indonesia, is one of the top vehicle imports of PH. Hence he proposed for Indonesia to source some of its automobile parts from PH to manufacture the said vehicle. One of the long-term plans to increase PH exports was for Indonesia to import Mitsubishi Mirage G4 and Toyota Vios when PH becomes the regional production hub for these vehicles.

Likewise, they discussed the Special Safeguards (SSG) on PH coffee imports, issued through Department Order No. 6 by the Department of Agriculture in March 2018. The measure was set because the price of Indonesian coffee brand Kopiko is below the PH’s trigger price of PHP203.74 per kilo.  

The lower import price has led to higher imports affecting Filipino coffee manufacturers. Secretary Lopez said that PH appreciates Indonesia’s show of good faith and efforts to enhance trade relations, as well as Kopiko’s commitment to put up a coffee processing plant in PH. These, he said, will be positively considered in reviewing the SSG on coffee.

Good Design Award Philippines Highlights Malasakit as a Defining Character of Philippine Design Excellence

The Design Center of the Philippines is set to recognize outstanding objects-, places-, images- made and systems executed in the Philippines that address social problems to enrich the quality of human life in the inaugural run of the Good Design Award Philippines. 

Good Design Award Philippines is a national design excellence recognition system that aims to promote design as a key tool in developing and providing solutions to social challenges as well as strengthen the country’s global competitiveness and increase its innovative quotient. 

"Design is an innovation enabler. At a time when we face tumultuous changes on every front—from technology to economics, the environment, and our institutions—the role of design becomes increasingly critical. Thus, our efforts will not just support our design industry; it will also push design skills to develop design-driven organizations and innovative industries. It will even help us transform the public sector," said Department of Trade and Industry Secretary Ramon Lopez.

"The most meaningful designs, creative works, and innovations are those that solve social problems, not just design for design’s sake. We want to promote a culture of design and innovation that can serve as higher-value services that our country can be known for,” Sec. Lopez added.

The design excellence recognition system is in support of AmBisyon Natin 2040 through the Philippine Development Plan 2017-2022, specifically its development strategies on ‘Promoting Philippine Cultures and Values,’ ‘Vigorously Advancing Science, Technology, and Innovation,’ and ‘Expanding Economic Opportunities in Industry and Services through Trabaho and Negosyo.’   

For Design Center executive director Maria Rita O. Matute, the Good Design Award Philippines adds more value to design as a driver of economic growth and innovation. It pushes for a design excellence that is impact-driven, providing design solutions that address human needs and societal challenges to protect future generations and secure a more livable society for them. 

"We envision Good Design Award Philippines to be one of the platforms through which Design Center nurtures the Philippines’ culture of design excellence,” Matute explains. “Aside from innovation and economic growth, we want to elevate design as a powerful tool that creates positive societal change, making the world a better place for all and future generations. This too then echoes a strong challenge to designers to act as catalysts and powerful agents of change—to improve the quality of human lives through objects, places, images and systems; through sustainable and inclusive businesses, and through responsible governance.” 

Malasakit as a PH brand of design excellence 

With the creative industries, particularly the design sector, steadily emerging as a driver of national competitiveness, the Philippines’ neighboring countries in the Southeast Asian region likewise invest in their respective design industries, encouraging a prolific design culture by recognizing good design across sectors. 

Good Design Award Philippines shares in the same objective as it aims to build a strong community of global Philippine designers from across industries and disciplines, and to promote the significance of design in uplifting lives, while pushing for a nation brand of design excellence that is particular to the Philippines. 

“What the Good Design Award Philippines brings to the fore of the global design industry is the Philippines’ unique approach to design excellence,” Matute remarks. “The Philippines is a nation with innate creativity; we are malikhain by nature. But what really sets Philippine design apart is the malasakit that is embodied in our design solutions, whether it be a product, place, image or system.” 

Malasakit, or closely translated in English as compassion, is the sympathetic consciousness of other’s distress and acting to alleviate it. Matute points out that the Good Design Award Philippines boldly puts this specific Philippine value as an additional pillar to the traditional parameters of good design—innovation, form, and function.  

“It is the impact of these design solutions to a social concern or basic human need that distinguishes Philippine design from the rest. While we recognize the significance of functionality, form, and innovation in good design, ours is not solely defined by these principles. Philippine good design is an equal part equation of the principles of good design and malasakit,” Matute discusses, emphasizing that malasakit is the Philippines’ contribution to the global design discourse.  

Matute cites as example the four homegrown products and service that were recognized in Japan’s Good Design Award-ASEAN Design Selection in 2018.  

SALt Lamp is an emergency lamp specially designed to give lighting support to marginalized island communities without the burden of complex tool mechanism, in line with Sustainable Development Goal (SDG) 7 on access to affordable and clean energy. With its human centered design, SALt lamp received the highest response in the visitor and consumer survey among the 22 designs in the ASEAN Design Selection special exhibition in Tokyo, Japan.  

Make a Difference (MAD) Travel offers social tourism tour packages that afford Aeta communities in San Felipe, Zambales sustainable living while tackling SDGs 1, 2, and 3 on No

Poverty, Zero Hunger and Good Health and Well-being. Moreover, MAD Travel encourages tourists and guests to aid in their goal of planting a 3,000 hectare forest, which is in line with SDGs 13 and 15 on Climate Action and Life on Land. 

Red Palm Ventures’ banana stalk wallpapers is geared towards the empowerment of women in a community in San Pablo, Laguna through livelihood, and addresses Sustainable Development Goal (SDG) 12 on Responsible Production and Consumption through the optimal use of banana stalks.  

Likewise, Bambike’s Bambino balance bike reinforces SDG 12 as well through the use of the highly abundant bamboos in their production, and SDG 8 on Decent Work and Economic Growth by providing livelihood to the Bambuilders (bamboo builders) of a Gawad Kalinga Community in Victoria, Tarlac.  

 

Malasakit as a mark of good design 

The Good Design Award Philippines has its criteria the principles of good design--innovativeness, form, and functionality—plus malasakit, which will be evaluated based on design solution’s impact on the 17 SDGs listed by the United Nations. 

The inclusion of malasakit in the criteria carry the Philippine value beyond simply a quality of Philippine good design; it shows how local innovations can also impact on global challenges. From a community level of compassion, Philippine design sees itself committed as well to developing solutions on a much larger perspective. 

Matute expounds that perceiving Philippine design in a wider picture adds to the commitment of nurturing a culture of design excellence in the country. “By understanding that design impacts a bigger cause than one’s self or one’s community, you would naturally want to come up with the best ideas and solutions because you become responsible to a larger matter,” she adds.  

Good Design Award Philippines 

The Good Design Award accepts entries from Philippine-registered enterprises, designers, and creatives from both private and public sectors with fully realized and/or executed products or systems in the design disciplines of object making (furniture, furnishing, décor; fashion accessories; mobility; and material innovation); image making (packaging, and communication); place making (architecture, and interior architecture); and service/system design. 

Winners will be evaluated in a two-step screening process by a jury composed of thirteen multidiscipline and industry-respected individuals, including the private sector representatives of the Design Advisory Council (DAC). 

Winning entries can be awarded the Good Design Philippines Red and Gold Awards based on the judging criteria, while the Good Design Philippines Green Award will recognize the entry with the most impact on SDGs related to environment and sustainability. The Gran Prix for Good Design Award Philippines is the Orange Award, and it will be awarded to the design that makes the greatest impact and contribution to the attainment of the United Nations SDGs. 

Entries can be submitted until 15 August 2019. For more information on Good Design Award Philippines, please visit https://designcenter.ph/good-design-award-ph.