Indonesia joins WTO fight over Australia's plain packaging laws

In a previous article by TimeBase, the introduction of Australia's plain packaging laws through the Tobacco Plain Packaging Act 2011 (CTH) - No. 148 of 2011 was discussed and the ensuing consultations with Australia through the World Trade Organization (WTO) by Ukraine, Honduras, the Dominican Republic and Cuba.

The WTO has also confirmed that Indonesia has made a formal request for consultations with Australia on the issue, which under the Geneva-based organisation's rules is the first step towards a full-blown trade dispute.

As a reminder, Australia's plain packaging laws aim to curb smoking by requiring tobacco products to be sold in drab green boxes with the same typeface and graphic images of diseased smokers.

Honduras, the Dominican Republic and Cuba, which are all cigar producers, have cited concerns that the legislation covers all tobacco products, not just cigarettes, while all five countries now have also maintained that Australia's law breaches international trade rules and intellectual property rights to brands.

In a case brought by tobacco firms, Australia's High Court rejected these arguments - JT International SA v Commonwealth of Australia
British American Tobacco Australasia Limited v The Commonwealth [2012] HCA 43 on 5 October 2012.

If Australia did lose the WTO dispute, it would not be required to pay any financial compensation. Instead, it would have time to change its plain packaging laws to accord with WTO rules or else face authorisation of retaliatory trade measures against Australia if the country fails to fall into line.

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.

ABC News Article - Indonesia joins WTO fight over Australia tobacco law