Australia is being sued by Tobbacco giant Philip Morris over packaging law

Philip Morris, one of the world’s largest tobacco companies, has announced that it is suing the Australian government over a new law requiring all cigarettes to be sold in plain packages.

"We are left with no option," Anne Edwards, a Philip Morris Asia spokesperson, said in a statement on Monday.

"The government has passed this legislation despite being unable to demonstrate that it will be effective at reducing smoking and has ignored the widespread concerns raised in Australia and internationally regarding the serious legal issues associated with
plain packaging."

Australia’s parliament recently passed laws compelling cigarettes, pipe tobacco and cigars to be sold in plain olive packs from December 2012.

The move, Philip Morris argues, will have a negative impact on the sales of its internationally recognised cigarette brands – including Marlboro, Parliament, Bond Street, Merit and Virginia Slims. 

Philip Morris Asia Ltd, Hong Kong, the owner of the Australian affiliate, has issued a legal challenge to the law through a notice of arbitration under Australia’s Bilateral Investment Treaty with Hong Kong.

The proceedings are being closely watched by governments considering similar moves in Europe, Canada and New Zealand, angering tobacco companies worried that they may set a global precedent and infringe on trademark rights.

Tobacco export countries including Nicaragua, Dominican Republic and Ukraine have warned that they may challenge the action under world trade rules; while tobacco companies, including British American Tobacco and Imperial Tobacco, have said they may challenge
the law in Australia’s high court.

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Posted by Kashif Khan on Nov 27 2011. Filed under Health. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry