EU against RP over tariffs

EU against RP over tariffs

MANILA (AFP): The European Union (EU) has filed a complaint against the Philippines under the General Agreement on Tariffs and Trade (GATT) over its tariff system, a trade official said here yesterday.

Trade Under-secretary Antonio Buencamino said the complaint was filed late April and "consultations" between the EU and the Philippines began June 2, although Manila was still awaiting further word on the negotiations.

The EU has complained that the "home consumption value" (HCV) used by the Philippines in setting tariffs make European exports less competitive.

Under the HCV, which is used only by the Philippines, tariffs are set according to the price of a product in its home market rather than the price in export markets. This hurts exports from Europe where items are priced high locally but are subsidized when exported, Buencamino said.

The Philippines' use of the HCV system has been criticized by many of its trading partners and both houses of the Philippine congress are considering bills shifting away from HCV.