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23 July 2018Trademarks

Honduras appeals WTO ruling on tobacco plain packaging

Honduras has appealed against a World Trade Organization (WTO) ruling on tobacco plain packaging in Australia, the  WTO said on Thursday, July 19.

Last month, the  WTO said it endorsed Australia’s plain packaging restrictions on tobacco products. Under the restrictions, which came into force in 2012, cigarettes must be sold in dark brown packaging that is free of any logos.

Australia was the first country to introduce plain packaging restrictions on tobacco products.

Indonesia, Cuba, the Dominican Republic and Honduras filed challenges to the rules, with Indonesia arguing that the measures prevented trademark owners from benefitting from their marks. Indonesia also said that the restrictions would create unnecessary trade barriers.

On June 28, the WTO rejected the arguments and supported Australia’s plain packaging rules. According to the organisation, the restrictions do not violate international trade law as they qualify as legitimate public health measures.

According to the WTO’s latest announcement, an appeal is heard by three members of a permanent seven-member appellate body comprising “persons of recognised authority and unaffiliated with any government”.

“The appellate body membership broadly represents the geographic range of WTO membership, with each member appointed for a fixed term. Generally, the appellate body has up to three months to conclude its report,” it added.

The UK and France are two countries that have followed Australia’s lead and introduced plain packaging on tobacco products.

However, there is debate over whether plain packaging is an effective strategy.

Data from the Tobacco Manufacturers’ Association ( TMA) released in May this year suggested that  plain packaging is failing in the UK. The association cited independent evidence that showed smoking levels in the UK have actually increased since restrictions were introduced in May 2017.

And according to the TMA, fake plain packaging cigarettes have been found across the UK, with “millions” of people turning to the black market to purchase tobacco. It said that a “single pack design” is easier and cheaper to replicate than traditional branded cigarettes because the plain packaging is identical to the fake packaging (apart from the brand name).

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More on this story

Trademarks
29 June 2018   The World Trade Organisation has endorsed Australia’s plain packaging restrictions on tobacco products.
Trademarks
13 September 2018   Saudi Arabia yesterday notified the World Trade Organization that it plans to implement plain packaging rules covering cigarettes.
Copyright
9 October 2018   The Australian government will provide the UK with warning pictures on tobacco products in the event of a no-deal Brexit scenario.