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.