The Philippine Plastics Industry Association (PPIA) has warned the inclusion of plastics in the list of products covered by retaliatory tariffs on imports from Thailand would push up prices of its products.
Danny Ngo, PPIA president, was referring to the possible imposition of punitive tariffs on more than a hundred tariff lines,, including plastics imported from Thailand in retaliation to the latter’s non-compliance to a World Trade Organization ruling on its cigarette tax regime.
According to Ngo, the industry relies heavily on imported resins for the production of plastics with Thailand and Malaysia as major sources.
Ngo said since Thailand has two manufacturing facilities, it can supply the Philippines more efficiently and at cheaper prices.
“This inclusion (of plastics in the retaliation) will create new problems,” he said.
Ngo said if at all, the government could consider just imposing the tariffs on finished plastics products.
At a recent Tariff Commission hearing,
Ngo called the governments of the Philippines and of Thailand to work together and enhance their cooperation to resolve the matter amicably.
Plastic products within Asean are duty-free. – Irma Isip