Australia faces WTO legal challenge over cigarette plain-packaging laws

Both Honduras and the Ukraine have both lodged official complaints with the World Trade Organisation over the legislation, which from December 1 will force all cigarettes to be sold in brown packets with no brand imagery. The tobacco exporters have claimed that the legislation infringes intellectual property rights and is an unnecessary obstacle to trade.

This move comes ahead of the High Court challenge by Philip Morris International, Imperial Tobacco Group, British American Tobacco and Japan Tobacco, who will present their arguments against the legislation in Canberra beginning April 17.

Both nations have requested consultations with Australia under the dispute settlement system. Talks will continue for at least two months. If the dispute cannot be resolved, they may ask the WTO to set up a dispute panel to rule on the issue. Depending on the outcome, this could see Australia forced to abandon the plain-packaging laws.

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