BRUSSELS - The European Union asked on Wednesday for talks with the Philippines at the World Trade Organisation (WTO) over that country's taxes on spirits, which the EU regards as discriminatory.

European distillers complain that the Philippines, one of the Asia-Pacific region's biggest spirits markets, granted advantageous taxes in 1996 and again in 2004 for spirits made locally from sugar cane or the sap of palms such as coconut.

Imports of Spanish brandy and Scotch whisky have been hit particularly hard, with taxes 10 to 50 times higher than for locally produced spirits, they say.

"This long-running problem has prevented EU exporters from competing fairly in the Philippine market, and has led to a sharp decrease in imports of European spirits," EU Trade Commissioner Catherine Ashton said in a statement.

"I hope that we can still find an amicable solution to this issue through the consultation process," she added.

The value of EU spirits exports to the Philippines fell about 60% over four years to 18 million euros ($25.5 million) in 2007, the European Spirits Organisation said.

"EU spirits producers are unable to compete in the Philippine market due to the high taxes imposed on their products," the group said in a statement. "This is a clear violation of WTO rules."

The Philippines consumed about 47 million nine-litre cases of spirits in 2007, the executive European Commission said, citing figures from the International Wine and Spirits Record. Of that, just 1 million cases were imported, it added.