This request came after the two nations failed to resolve their dispute during bilateral consultations held in Bangkok on June 2.

In a filing with the WTO dated July 6, Philippines said the Thai public prosecutors’ move to file tax evasion raps against officials of Philip Morris (Thailand) undermined a decision issued by the multilateral body back in 2011.

According to the public prosecutors, the cigarette firm allegedly under-declared the value of 272 batches of cigarettes imported from the Philippines.

The total cost of the imported goods and duties was estimated to be more than Bt20 billion.

If found guilty, Philip Morris Thailand would have to face a fine four times the estimated cost of the imported goods, including taxes.

Local trade officials expressed fear the results of the tax evasion case would affect some two million Filipinos directly and indirectly dependent on the operations of Philip Morris, which is the Philippines’ biggest manufacturer of cigarettes.

Thailand is the main export destination of the product.