WTO to probe Philippine liquor duties

U.S officials say the Philippine tax system - imposing duties 10 to 40 times higher on spirits not distilled from materials produced in the Philippines - means that U.S. imports have failed to gain more than 5 percent of the USD 3 billion Philippine spirits market.

The U.S.’ complaint could help U.S. distillers like Brown-Forman Corp , which owns Jack Daniel’s, and Fortune Brands Inc , which makes Jim Beam, break into the market.

However, Philippine officials say the country’s tax system is consistent with WTO rules.

A meeting of the WTO’s dispute settlement body in April had decided to refer the complaint to a panel of experts for a ruling. Another panel is already investigating a complaint about the same issue raised by the European Union.

The panel is expected to rule on the complaint in six to nine months, but both sides could appeal its findings.