WTO upholds Australian plain packaging compliance on appeal

The Appellate Body of the World Trade Organization (WTO)[1] ruled on Tuesday that Australia's strict plain packaging laws for tobacco products were justified, rejecting complaints from Honduras and the Dominican Republic that they were unfair restrictions on trade. Australia was the first country in the world to introduce plain packaging in 2012.[2] in order to make tobacco less attractive. The marquetry packaging acting as “silent salesmen”, the packaging was designed according to the target audience: women, young people, certain communities, etc.

The WTO had already ruled in 2018 at first instance following an appeal brought in 2011 by Cuba, the Dominican Republic, Honduras and Indonesia against Australia regarding its legislation on plain packaging.[3]. The latter was characterized by a unique olive green packaging, with large health warnings and affixing the brand name in a standardized manner. Any other distinctive sign of the brand of an advertising nature such as the logo, visuals were prohibited.

The complainants argued that Australia's tobacco plain packaging law constituted an unjustified barrier to trade, but the WTO in its first decision found that Australia's measures were no more restrictive than necessary to achieve the public health objective of reducing smoking. The group of countries bringing the case also disputed that plain packaging reduces tobacco consumption.

However, several studies[4] analyzed data from Australia four years after the introduction of plain packaging. They found that plain packs helped significantly reduce the number of smokers in the country.

Since then, a growing number of countries, including Britain, France, New Zealand and Uruguay, have introduced similar legislation.[5].

Honduras and the Dominican Republic had appealed the first decision.

The WTO appeals body upheld the first decision and rejected the complainants' request that Australia amend its labelling and packaging laws and abandon plain packaging.

Tuesday's decision was the latest by the WTO's appeals body, which serves as the top court in international trade disputes. With the United States blocking new appointments, the Geneva-based WTO can no longer intervene effectively to resolve such disputes.

In terms of appeals brought against the plain packaging measure, whether initiated by countries or manufacturers, they have all failed.

©Tobacco Free Generation

Source of the article (in English)

[1] World Trade Organization (WTO). Publication of Appellate Body reports on tobacco plain packaging requirements, 9 June 2020. https://www.wto.org/french/news_f/news20_f/435_441abr_f.htm

[2] https://www.theguardian.com/world/2012/dec/01/plain-packaging-australian-cigarette-tobacco

[3] https://www.theguardian.com/business/2018/jun/29/resounding-victory-australia-wins-tobacco-plain-packaging-dispute

[4] Dunlop SM, Dobbins T, Young JM, et al Impact of Australia's introduction of tobacco plain packs on adult smokers' pack-related perceptions and responses: results from a continuous tracking survey BMJ Open 2014;4:e005836. doi: 10.1136/bmjopen-2014-005836

[5] https://www.who.int/tobacco/publications/industry/tobacco-plain-packaging-global-status-update/en/

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