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Australia wins WTO tobacco plain packaging case

Australia wins WTO tobacco packaging case

The World Trade Organisation has ruled that Australia’s tobacco plain packaging laws are a legitimate public health measure.

The ruling has been widely anticipated, as it could give the green light for other countries to enforce similar laws on tobacco.

The ruling could also have wider implications on alcohol and food packaging.

Introduced in 2010, the laws banned logos and distinctive-coloured cigarette packaging in favour of plain olive packets with brand names printed in small, standardised font.

Tobacco firms have claimed that their trademarks were being infringed, while Cuba, Honduras, Dominican Republic and Indonesia argued at the WTO that the rules constituted illegal barriers to trade.

The ruling is not expected to be published until July but a confidential draft has been circulated to parties in the case, Bloomberg reported.

A spokeswoman for British American Tobacco declined to comment on the ruling until it was publicly released, but indicated the complainants would keep fighting.

“As there is a high likelihood of an appeal by some or all of the parties, it is important to note that this panel report is not the final word on whether plain packaging is consistent with international law,” she told ABC news.

Australia had the backing of the World Health Organisation and many other countries began announcing similar legislation, a sign that they expected the WTO to rule in Australia’s favour.

The slow pace of WTO decision-making prompted Australia to complain that it’s challengers were deliberately stalling proceeding and halting countries that wished to follow its example.

Britain, France and Hungary went ahead with their own legislation, while Ireland, Canada and South Africa are considering following suit.

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