CA panel defers confirmation of envoy to WTO

The Commission on Appointments committee on foreign affairs has deferred the deliberations on the appointment of Manuel Antonio Teehankee as Permanent Representative of the Philippines to the World Trade Organization in Geneva, Switzerland.

Senator Jinggoy Estrada, chairman of the CA panel, said the hearing will be deferred until Teehankee submits to the committee a copy of the Understanding on Agreed Procedures that the Philippines and Thailand had signed to settle the trade disputes between the two countries.

During the hearing, Senator Risa Hontiveros recalled a complaint was filed by the Philippines in 2008 about Thailand's custom valuation of Philippine cigarette exports.

Hontiveros said the WTO ruled in favor of the Philippines in 2010 and ruled that Thailand had violated the international trade body's customs valuation agreement.

Following this ruling, Hontiveros said, Thailand brought further to WTO new inconsistent customs valuations against Philippine exports and even filed criminal charges for undervaluation.

For the second time, the senator said that the WTO ruled in favor of the Philippines.

Asked on the status of the cases, Teehankee reported that the Philippines and Thailand have entered into an agreement to "continue a dialogue towards a full resolution of the dispute."

"So through the increased dialogue with the Thai government, we conducted a one-year discussion with our inter-agency [body] including the DOJ to be able to respect each other's sovereignty and move forward on the cases," he said.

"While it is not yet fully resolved, we have decided to establish the dialogue mechanism and it has resulted in some positive results," he added.

Among the results are the lowering of the fines imposed against the affiliates of the Philippines and acquitals from criminal charges, Teehankee said.

Teehankee said his office facilitated the discussions between the Philippines and Thailand and reported to the ministers of trade of both countries.

The appointee also offered to brief Hontiveros' office regarding the agreement that was entered into by Philippines and Thailand.

However, Hontiveros questioned the rationale behind the agreement between the two states as she pointed out that this might weaken the Philippines' position on the trade dispute considering that the latter had already secured two victories in the WTO.

She then asked Teehankee to provide a copy of the Understanding on Agreed Procedures Towards a Complete Settlement with Thailand.

However, the senator made a motion to defer the confirmation of Teehankee's appointment pending the submission of the documents.

"I need to make a motion because I believe we should be furnished the Understanding on Agreed Procedures with Thailand... we should study it before further proceedings are conducted by this honorable commission relative to his appointment," Hontiveros said.

Teehankee tried to ask the senator to drop her motion, explaining that he is only acting based on the instructions given to him.

"Honorable senator, since we are acting only under instructions and these are matters of the Department of Trade and Industry, I would like to request Senator Risa's indulgence and my assurance of a full briefer for her but I request that I'd not be deferred further and I undertake to completely brief your office with the Department of Trade," he said.

"If it is possible only, of course, you have your right... I have tried the best of my ability, as I promised to you in the last confirmation hearing, to do my best during my performance here and I humbly request your indulgence, senator," he added.

Hontiveros replied that although she respects Teehankee's request, ambassadors are expected to uphold the interest of the Philippines and the agreement is seemingly "harmful" to the nation's stake.

"Our ambassadors are charged to uphold the national interest and this is a very particular understanding...that seems, as I mentioned earlier, will be snatching defeat from the jaws of victory dahil ito'y sumunod pagkatapos ng dalawang [because it follows two] winning rulings for the Philippines from the hands of the WTO," she said.

"It seems that it is harmful to the national interest. That's why I made an earlier motion to give the committee, the commission time to receive and study the substance of this understanding before we proceed further on this confirmation," she added.

With no objections from the members of the panel, Hontiveros' motion was approved.

Meanwhile, the CA panel endorsed the confirmation of the appointments of the following Foreign Affairs officials:

• Irene Susan Natividad: Ambassador Extraordinary and Plenipotentiary to the Federal Republic of Germany
• Bernard Faustino Dy: Ambassador Extraordinary and Plenipotentiary to the Swiss Confederation, with concurrent jurisdiction over the Principality of Liechtenstein
• Lemuel Lopez: Foreign Service Officer, Class II
• Elizabeth Ramos: Foreign Service Officer, Class II
• Catherine Alpay: Foreign Service Officer, Class II
• Nadine Rosario Morales: Foreign Service Officer, Class II

— BM, GMA Integrated News