Australia's plain package tobacco law finally to be tested at WTO

Australia's plain package tobacco law finally to be tested at WTO
By By Tom Miles
By Tom Miles

GENEVA (Reuters) - An Australian law forcing cigarette companies to sell
their products in plain packets is about to be tested in court,
diplomats at the World Trade Organization said on Friday, ending more
than two years of procedural delay.

Cuba, Ukraine, Indonesia, Honduras and Dominican Republic have brought
the action against Australia, the first country to ban the colorful
logos used to sell tobacco brands around the world, a law aimed at
reducing addiction and disease.

Opponents of the law, who say it is heavy-handed and an invitation to
counterfeiters, had hoped other countries would hold off from following
Australia's example pending a WTO verdict, but Britain, Ireland and New
Zealand have already begun drafting similar legislation.

Since late 2012, tobacco products in Australia can only be sold in drab
olive-colored packets that look more like military or prison issue, with
brands printed in small standardized fonts.

The five countries challenging it say the legislation is a barrier to
trade and restricts intellectual property.

"My country fully shares Australia's health objectives. However, its
plain packaging measure is failing to have the desired health effects of
reducing smoking prevalence and remains detrimental to our premium
tobacco industry," Katrina Naut, the Dominican Republic's foreign trade
chief, said in a statement.

"By banning all design elements from tobacco packaging, plain packaging
precludes our producers from differentiating their premium products from
competitors in the marketplace."

After two years of slow-going procedure, Australia and its five
challengers have agreed the conditions that will allow the case to get
under way within weeks and for a ruling to be made potentially as soon
as November.

In the key step to get the process started, WTO chief Roberto Azevedo
will appoint three panelists by May 5 to judge the dispute, according to
transcripts of statements at the body's dispute settlement body on Friday.

As well as its huge importance for the global tobacco industry, the case
could have implications in other sectors, as some public health
advocates see potential for plain packaging laws to extend into areas
such as alcohol and unhealthy foods.

The appointment of WTO panelists will set the clock ticking on a
six-month deadline for them to rule on the dispute.

However, panels frequently ask for more time and the WTO's dispute
system is suffering from a bottleneck.

Any party to the dispute could also appeal, which will add months more,
and some disputes drag on for years due to disagreements over whether a
country ruled to be in the wrong has done enough to comply with the
terms of a judgment.

(Editing by Robin Pomeroy)

Source: Australia's plain package tobacco law finally to be tested at
WTO - Yahoo News -
http://news.yahoo.com/australias-plain-package-tobacco-law-finally-tested-wto-103057341--finance.html;_ylt=AwrBJR91Zl5T.yIAsmbQtDMD