THAILAND – CUSTOMS AND FISCAL MEASURES ON CIGARETTES FROM THE PHILIPPINES REPORT OF THE FACILITATOR PURSUANT TO PARAGRAPH 5 OF THE "UNDERSTANDING BETWEEN THE PHILIPPINES AND THAILAND TO PURSUE FACILITATOR-ASSISTED DISCUSSIONS AIMED AT PROGRESSING AND RESOLVING OUTSTANDING ISSUES IN REGARD TO DS371"
Document: UNDERSTANDING BETWEEN
Date: 6 April 2021
Document codes: WT/DS371/45; WT/DS371/44
Complainant: Philippines
Respondent: Thailand
Third parties: Australia, China, EU, India, Taiwan, U.S.
Dispute stage: Appellate Body
Agreements cited: Art. 13, 10  Customs valuationArt. X:3, II:1(b), II:3  GATT 1994Art. 2, 3, 4, 5, 6, 7, 1.1, 1.2  Customs valuationArt. VII:1, VII:2, VII:5  GATT 1994Art. 16  Customs valuationArt. X:1, III:2, III:4  GATT 1994

THAILAND – CUSTOMS AND FISCAL MEASURES ON CIGARETTES FROM THE PHILIPPINES
REPORT OF THE FACILITATOR PURSUANT TO PARAGRAPH 5 OF THE
"UNDERSTANDING BETWEEN THE PHILIPPINES AND THAILAND TO PURSUE
FACILITATOR-ASSISTED DISCUSSIONS AIMED AT PROGRESSING AND
RESOLVING OUTSTANDING ISSUES IN REGARD TO DS371"
The following communication, dated 31 March 2021, from the Facilitator to the Chairperson of the
Dispute Settlement Body (DSB), is circulated at the request of the Facilitator.

In accordance with paragraph 5 of the 18 December 2020 Understanding between the Philippines
and Thailand on the DS371 Facilitator-Assisted discussions (), I am required to report
back to the DSB on 31 March 2021. I am therefore pleased to provide this report to the DSB, through
you, in this communication.

I wish to report that I have met together with the DS371 parties on six separate occasions since
being appointed as Facilitator in December 2020. It is not my intention to report on the detail of the
consultations, which remain confidential. I am, however, pleased to report that I consider that the
consultations have been valuable in providing the parties with an opportunity to present their
respective views on ways and means of resolving outstanding issues, including on "both procedural,
and/or substantive approaches, including a potential comprehensive settlement" as envisaged in
paragraph 2 of the 18 December 2020 Understanding.

Promoting greater transparency and predictability in relation to issues under discussion remain
important goals which I believe the dialogue between the parties can usefully promote. In this
regard, the parties are actively engaging with me in discussions, and I have also been encouraging
direct engagement between the parties' officials in capitals. I am also planning to participate in a
virtual meeting with customs officials and representatives of the parti es on 7 April with a view to
advancing co-operation on certain issues. I am hopeful that these mutually supportive processes will
progressively lead to the parties building up elements of agreement.

As envisaged in paragraph 5 of the Understanding, taking into account the current state of play, and
having consulted with the parties, I am recommending the continuation of the current process up to
31 July 2021. On that basis, I would propose to deliver a further report to the DSB before that date.

I look forward to the DS371 parties ongoing co -operation in progressing our discussions on
outstanding issues.