V - ARTICLE III:2, FIRST SENTENCE, OF THE GATT 1994

Summary

109. We begin with the Philippines' appeal of the Panel's findings that imported distilled spirits made from non-designated raw materials and domestic distilled spirits made from designated raw materials are “like products” within the meaning of Article III:2, first sentence, of the GATT 1994 and that, as a consequence, by subjecting imported distilled spirits made from non-designated raw materials to internal taxes in excess of those applied to “like” domestic distilled spirits made from designated raw materials, the Philippines acts in a manner inconsistent with Article III:2, first sentence, of the GATT 1994.

110. Specifically, the Philippines challenges the Panel's findings that: (i) all distilled spirits at issue in this dispute are “like products”, whether imported or domestic, and irrespective of the raw materials from which they are made; and (ii) each type of imported distilled spirit at issue in this dispute made from non-designated raw materials is “like” the same type of domestic distilled spirit made from designated raw materials.

111. We address first the Philippines' appeal of the Panel's finding that each type of imported distilled spirit at issue in this dispute made from non-designated raw materials is “like” the same type of domestic distilled spirit made from designated raw materials. In so doing, we review the Panel's findings on the specific factors it examined in its analysis of “likeness” under Article III:2, first sentence, of the GATT 1994.