Philippine Liquor Tax Illegal, WTO Says in Backing U.S., EU

Philippine taxes on imports of spirits such as whiskey and brandy made by Brown-Forman Corp. and Pernod Ricard SA are illegal, the World Trade Organization ruled, upholding complaints by the U.S. and the European Union.

Yesterday’s ruling may help European and U.S. companies boost their share of the Philippines’ $3 billion liquor market. WTO judges in Geneva rejected the Philippines’ argument that imported liquor such as Jim Beam whiskey, Brandy de Jerez and Southern Comfort don’t compete with locally made distilled spirits and therefore different taxes based on the raw material used to make the liquor should be legal.