Australia Attempts to Speed Up WTO Plain Packaging Disputes
Friday 28 March 2014 @ 11.34 a.m. | IP & Media | Legal Research
Australia has accepted a challenge to its plain packaging laws at the World Trade Organisation (WTO). Indonesia has requested to establish a WTO dispute panel to assess whether Australia has been breaching international law with its ground-breaking packaging rules. Usually, members take advantage of a WTO rule allowing first requests to establish dispute panels to be refused, so Australia’s move is rare. Intellectual Property Watch has reported that the move is an attempt by Australia to unite some or all of the various cases proceeding against it.
Current WTO Proceedings
TimeBase has previously reported on a number of the panels currently being established by the WTO (for example, see The WTO and Australia's Plain Packaging Laws). Prior to Indonesia’s action, Ukraine, Honduras, the Dominican Republic and Cuba all initiated disputes and are at various stages of the process. The disputes have been dragging on for some time, with the first dispute having been filed two years ago, and no panel proceedings having yet started.
Australia's Concerns
Australia has raised a number of concerns about the length of the process so far, as well as the broader implications for the WTO dispute settlement procedures. The WTO Dispute Settlement Understanding Article 3.3 states:
The prompt settlement of situations in which a Member considers that any benefits accruing to it directly or indirectly under the covered agreements are being impaired by measures taken by another Member is essential to the effective functioning of the WTO and the maintenance of a proper balance between the rights and obligations of Members.
Australia considers that the ongoing uncertainty is detrimental not only to itself, but also to other countries considering implementing similar plain packaging laws. TimeBase reported earlier this year that plain packaging legislation has been overwhelmingly passed in New Zealand (New Zealand to Initiate Plain Tobacco Packaging Law), and noted that the WTO disputes were a key issue that could delay implementation. Australia also highlighted the ‘human cost’ in delaying the implementation of these measures elsewhere. Australia has further concerns about the resource implications of having to manage so many separate disputes at once, and the precedents this could set.
Australia has reiterated its belief in the effectiveness and legality of its plain packaging laws. Intellectual Property Watch reported on an Australian statement which says:
“tobacco plain packaging is a sound, well-considered measure designed and based on a broad range of scientific studies and reports to achieve a legitimate objective – the protection of public health.”
The statement also noted that Indonesia has the second highest male smoking rate in the world, with the number of women smokers also on the rise.
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