Plain tobacco packaging if WTO rules for Australia

ULTRA-PLAIN packaging for tobacco products might become the norm worldwide if a World Trade Organization panel ruled in favor of Australia yesterday in what is seen as a test case for public health legislation globally.

The WTO said the adjudication panel’s ruling in the dispute over Australia’s “plain packaging” rules, brought in 2012-2013 by Honduras, the Dominican Republic, Cuba and Indonesia, would be published at around 1500 GMT.

A WTO ruling that upholds Australia’s position would be a blow to the tobacco industry as it would effectively give a green light for other countries to roll out similar laws. It could also have implications for alcohol and junk food packaging.

“Tobacco plain packaging is an evidence-based measure that WHO recommends as part of a comprehensive approach to tobacco control,” Tarik Jasarevic, a spokesman for the World Health Organization said yesterday. “A positive decision from the WTO Panel is likely to accelerate global implementation.”

A Bloomberg News report last year cited two people familiar with the situation as saying the panel was likely to rule in Australia’s favor. If so, an appeal is seen as likely.

Australia’s law goes much further than the advertising bans and graphic health warnings seen in other countries.

Introduced in 2010, it bans logos and distinctive-colored cigarette packaging in favor of drab olive packets that look more like military or prison issue, with brand names printed in small standardized fonts.

Cuba, Honduras, Dominican Republic and Indonesia complained at the WTO that the Australian rules constituted an illegal barrier to trade.

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.

Tobacco giant Philip Morris declined to comment yesterday as it is not party to the dispute.

Vera Luiza da Costa e Silva, head of the secretariat of WHO’s Framework Convention on Tobacco Control, said it was a huge day for tobacco control, because of the WTO ruling and because a protocol to halt tobacco smuggling had taken effect.

She saw a “domino effect” in plain packaging, with other countries already moving toward Australian-style rules.

“What this shows in reality is that plain packaging is a reality, it will happen anyway, and parties will progressively adhere more to plain packaging,” da Costa e Silva said.