Requests formal trade consultation
The European Union has formally requested consultations at the World Trade Organisation over the Thai customs practice of rejecting the declared valuation of EU products and applying an arbitrary value instead. The EU said the measures are having a significant impact on EU companies, especially exporters of wines and spirits. The problem also appears to be affecting car exports, it said.
EU Trade Commissioner Peter Mandelson said these measures are arbitrary and damaging for EU companies seeking to do business in Thailand.
''We believe they are not compatible with WTO rules. The European Union is committed to ensuring that European companies are able to compete fairly in other markets. We believe it will be possible to resolve this issue quickly and amicably,'' he said.
Following the launch of the Global Europe trade strategy in October 2006 the EU has stepped up its focus on removing barriers to trade and improving market access for EU exporters. The work of the commission focuses in particular on making sure that rules are respected and obligations to provide fair trading conditions are fulfilled.
The EU request was made in Geneva on Jan 25. Consultations are the first steps in the WTO dispute settlement process. If they prove unsuccessful after 60 days, they entitle the EU to ask that a WTO panel be set up to rule on the legality of the Thai measures.
The EU has alleged that since September 2006, it appears that Thailand has rejected the declared transaction price of certain EU products imported into the country, and applied an arbitrary value instead.
This practice violates the basic principle that customs valuation is normally based on the transaction value of the imported goods as set out in the WTO Customs Valuation Agreement.
The practice also seems to be in breach of a number of Thailand's other WTO commitments.
The practice has a significant adverse economic impact on EU companies, creating unnecessary administrative burdens, delaying customs clearance as well as imposing on them bank guarantee and cash deposit obligations for an unreasonable period of time, it said.
The EU and other WTO members have on numerous occasions raised their concerns over Thailand's customs valuation practices.
The EU remains open to finding a mutually agreed, WTO-compliant solution as quickly as possible, it said.
European spirits exporters welcomed the EU's call on the WTO to pressure Thailand to change its ''arbitrary'' tariff system imposed since the 2006 coup.
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