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5 May 2017Trademarks

WTO upholds Australia’s plain packaging restrictions

Australia’s plain packaging restrictions on tobacco products have been upheld by the World Trade Organization (WTO), according to Bloomberg.

Bloomberg said that two people “close to the situation” had confirmed the WTO’s decision.

They said a WTO dispute-settlement panel had backed Australia’s argument that its 2011 rules, which came into effect a year later, don’t “violate trade law because they qualify as a legitimate public health measure”.

Australia was the first country to introduce the plain packaging requirement for cigarettes, and some countries including the UK have followed suit.

The country faced challenges at the WTO from other nations including Indonesia, Ukraine and Cuba, which filed their challenges in 2012 and 2013.

In its request, Indonesia said that the measures create unnecessary barriers to trade and prevent trademark owners from enjoying benefits conferred by their marks.

According to Bloomberg’s sources, the full WTO ruling will be released in July and the parties will be permitted to appeal against the decision, as according to WTO rules.

In April, the UK Supreme Court refused to allow an appeal from the tobacco industry in a final domestic decision on plain packaging.

From May 21, 2017, all cigarettes sold in the UK must have standardised packaging—an olive green colour, with large images of health warnings covering 65% of the front and back of every packet.

A British American Tobacco (BAT) spokesperson said: “BAT is not a party to this international dispute and it would be inappropriate for us to comment at this stage before the panel has publicly released its final report—which we understand will be later this year.”

However, the spokesperson added that as there is a “high likelihood” of an appeal by some or all of the parties, “it is important to note that when the panel report is publicly released, it will not be the final word on whether plain packaging is consistent with international law”.

The WTO said: "We can confirm that the confidential interim report in the plain packaging dispute was circulated to the parties in the dispute on a confidential basis on May 2. As the report is confidential, the WTO will not be commenting on the matter."

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More on this story

Trademarks
12 April 2017   The UK Supreme Court refused to allow an appeal from the tobacco industry yesterday, in a final domestic decision on plain packaging.
Trademarks
29 June 2018   The World Trade Organisation has endorsed Australia’s plain packaging restrictions on tobacco products.