The Effect of Plain Packaging Laws: Decline in Smoking

Monday 21 July 2014 @ 12.29 p.m. | Legal Research

In new results from the longest running national drug survey (from 2010 to 2013), dramatic effects from plain packaging tobacco laws are being seen.

Background to the Laws

As part of a comprehensive Australian Government strategy to reduce the rate of smoking in Australia, the Tobacco Plain Packaging Act 2011 (CTH) and commenced in the latter months of 2012. The Australian government successfully defended the legislation’s constitutional validity in cases brought by the multinational tobacco companies British American Tobacco, Imperial Tobacco, Japan Tobacco and Philip Morris in the High Court of Australia. A challenge in the World Trade Organisation is now on foot with tobacco companies stating publically that they are helping to fund various challenges against Australia’s plain packaging laws.

Background to the WTO Disputes

As TimeBase has previously reported, Indonesia, Ukraine, Honduras, the Dominican Republic and Cuba have all initiated disputes in the WTO (World Trade Organisation) against Australia 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.

Along with fellow plaintiff Honduras, Cuba and the Dominican Republic say that by covering all tobacco products, not just cigarettes, the legislation harms their traditional cigar brands. Indonesia and Ukraine are both leading raw tobacco and cigarette exporters, and agree with the other plaintiffs that Australia's laws breach the rules of global commerce and international trade rules.

The five countries argue that the law breaches international trade rules and the intellectual property rights of brands - a stance rejected by Australia's government and which also failed to convince the country's high court in a case brought by tobacco firms.

It is only with the specific panel hearings requested separately by both Cuba and the Dominican Republic, heard on 25 April 2014, that progress has been made on any of the applications.

Results from the Current Drug Survey

From January 2012, all tobacco products have been sold in plain packs with graphic health warnings. The goal of plain packaging was always to reduce the appeal and allure of tobacco products to young people and prevent a new generation of Australian smokers.

The 2013 National Drug Strategy Household Survey shows real promise that this is occurring, with the percentage of 18- to 24-year-olds who have never smoked increasing to 77% from 72% in 2010. The number of 12- to 17-year-olds who have never smoked held steady at a near universal 95%.

The three-year survey shows just 12.8% of Australians over the age of 14 are now smoking on a daily basis. This is a significant decline from the 2010 survey when smoking rates were 15.1%, making this the single biggest drop in smoking rates to be observed in twenty years, with rates plummeting by 15.5%.

The survey of nearly 24,000 Australians was conducted between July and December 2013, before the new 12.5 per cent tobacco tax.

A tobacco industry spokesman has stated:

"one of every two smokers is not able to distinguish in blind (masked) tests between similar cigarettes …for most smokers and the decisive group of new, younger smokers, the consumer’s choice is dictated more by psychological, image factors than by relatively minor differences in smoking characteristics."

TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.

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