Indonesia takes plain packaging fight to WTO

Australia’s plain packaging laws are again under fire by overseas tobacco, with Indonesia reportedly winning the right to seek a ruling by the World Trade Organisation.

The ABC reports that, according to trade sources, the WTO’s disputes settlement body has agreed to set up an independent panel of experts to review whether Australia is breaching the rules of global commerce.

Under the legislation, all tobacco products have to be sold in uniform green boxes, use the same font and display images of diseased smokers – which aggrieved tobacco companies say is a breach of international trade rules and the intellectual property rights of all brands.

Indonesia exports more than A$733m (USD $670m) worth of tobacco a year. If the WTO’s settlement body finds against Australia, it has the power to authorise retaliatory trade measures.

Under WTO rules Australia could have blocked Indonesia’s first request for a hearing in the dispute, but chose not to exercise this power; which the ABC says suggests the government wants a ruling as soon as possible.

Since Australia introduced its plain packaging legislation in December 2012, five countries have lodged complaints with the WTO, with cases brought in 2013 by the Ukraine as well as by cigar-making nations the Dominican Republic, Honduras and Cuba.

While the Ukrainian and Honduran cases have permission to be heard by expert panels, Cuba has not moved beyond filing an initial complaint and the Dominican Republic is yet to make its second request for a hearing.

In Australia, a case brought by tobacco firms to the High Court failed to overturn the regulations, which politicians hope will discourage people from smoking.

Research by the Cancer Council Victoria last year found that smokers were less willing to display their packs in public and smoke in outdoor areas since the introduction of plain packaging with graphic health warnings.

 

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