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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.

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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.