The World Trade Organization (WTO) has ruled in favor of Australia's 'plain' tobacco packaging, saying it improves public health and doesn't infringe on the industry's intellectual property rights.
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In its 800-page ruling, the WTO rejected a complaint put forward by Cuba, Indonesia, Honduras and the Dominican Republic in 2012 saying that more plainly designed tobacco packaging wasn't necessary to deter tobacco use and improve public health, contradicting World Health Organization (WHO) studies.
"Tobacco plain packaging is an evidence-based measure that WHO recommends as part of a comprehensive approach to tobacco control," said WHO spokesperson Tarik Jasarevic on Thursday.
The plaintiffs also said the move toward plain package designs and logos infringes tobacco trademarks; violates intellectual property rights, and was somehow an illegal barrier to trade, which the WTO rejected.
The Australian plain cigarette carton law was introduced in 2010 and bans national tobacco companies from using graphic logos and cigarette package designs in favor of drab olive coloring that resembles military or prison issue items.
This particular WTO case is being seen as a precedent in terms of public health legislation on an international level. Experts say the decision could create a domino effect leading to similar laws across the globe for not only tobacco but the food and alcohol industries as well.
Honduran officials indicated they will appeal, saying that the ruling had legal errors and wasn't even-handed or respectful of the complainants' rights.
"It appears that this dispute will require the review of the Panel’s findings by the WTO Appellate Body before any final conclusions can be drawn," a Honduran statement read.
An Indonesian trade official said the government will examine its options, and Cuban and Dominican authorities weren’t available for comment, according to Reuters.
"Australia has achieved a resounding victory," Trade Minister Steven Ciobo and Rural Health Minister Bridget McKenzie said in a statement after the WTO decision was released.
The WHO welcomed the ruling, saying it cleared "another legal hurdle thrown up in the tobacco industry's efforts to block tobacco control and is likely to accelerate implementation of plain packaging around the globe."
WHO officials pointed out that six other countries – Hungary, Ireland, France, New Zealand, Norway and Britain – have already implemented plain packaging laws. Burkina Faso, Canada, Georgia, Romania, Slovenia and Thailand have such laws on the books.
The International Trade Director at Japan Tobacco International called the decision a major step backward for the protection of intellectual property rights on an international level.
"It sets a dangerous precedent that could encourage governments to ban branding on other products without providing any reliable evidence of benefits to public health," Geir Ulle said. He added that recent data showed plain packaging was not working to deter smoking habits.