Australia wins legal battle against tobacco industry

It has been a five-year battle but plain packaging has won.

The World Trade Organisation has upheld the Australian law, according to reports by Bloomberg,  on restrictive tobacco packaging after tobacco firms claimed their trademarks were being infringed. Other countries, such as Cuba and Indonesia claimed the rules constituted an illegal barrier to trade.

However a WTO dispute-settlement panel backed Australia’s argument that the rules it set in 2011 don’t violate trade law because they qualify as a legitimate public health measure. 

Australia was the first country to prohibit tobacco logos but other countries held off following our lead after four tobacco producing companies filed their complaints. Following this decision it could mean many more countries will do now enforce plain packaging, a major concern to the tobacco industry.

What is the main problem with plain packaging? It all comes down to marketing and advertising. As explained by some marketing experts, smaller companies have a tougher time getting sales if their brand is not out there, and people don’t know about them.

The news is not yet official, and came out after two people involved leaked the details to media. It is expected that the full ruling will be released in July, and then it will be possible for anyone to appeal the decision.

Because of the result there are now serious questions over the implications of the result when it comes to alcohol and junk food packaging.

Read more: Plain packaging laws could be applied to booze, junk food.

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