Australia has triumphed in a major trade dispute over its pioneering tobacco packaging law, with a panel of judges at the World Trade Organisation (WTO) rejecting arguments brought by Cuba, Indonesia, Honduras and the Dominican Republic.
The WTO panel ruled last week that the Australian "plain packaging" law contributed to improving public health by reducing use of and exposure to tobacco products, and rejected claims that alternative measures would be equally effective.
The ruling, which is expected to be appealed, also rejected the complainants' argument that Australia's law unjustifiably infringed tobacco trademarks and violated intellectual property rights.
The win means other countries can now roll out similar laws, with wider implications for alcohol and junk food packaging.
Introduced in December 2012 during the Gillard government, the law bans logos and distinctive-coloured cigarette packaging in favour of plain olive packets with brand names printed in small, standardised fonts.
Six other countries have brought in plain packaging laws – Hungary, Ireland, France, New Zealand, Norway and Britain – while another six had passed laws yet to be implemented – Burkina Faso, Canada, Georgia, Romania, Slovenia and Thailand.
But Honduras, one of the four complainants, said in a statement that the ruling contained a number of legal and factual errors and did not appear to have been even-handed and objective, and indicated that it would appeal.
Tobacco firms have said the law infringes their trademarks, and that the easily counterfeited packs will encourage smuggling, although they are not involved in the WTO case.
In related news, the cost of the Australian government’s six-year legal battle with the tobacco giant Philip Morris over plain packaging laws was revealed to be $40 million.
