Wednesday, June 10, 2020

It is plain and simple - Tobacco plain packaging is WTO consistent

The tobacco dispute at the WTO has finally found an end. After nearly 6 years, going through the panel and Appellate Body of the WTO, the Appellate Body upheld the panel's findings and found that the plain packaging measures on cigarette packets undertaken by Australia were not inconsistent with the TBT and TRIPS Agreements.

The AB report is here.

The dispute has brought to the fore many issues including the right of the State to regulate in the interest of public health, what measures could be undertaken that would not restrict trade as well as the rights of the intellectual property owner under the TRIPS Agreement.

The decision has been overwhelmingly in favour of the right of the State to undertake public health measures consistent with the limitations that the WTO covered agreements provide. It was expected on these lines after the panel had found Australia's measures consistent with its WTO obligations. Will this decision lead to more countries adopting plain packaging or similar measures like Australia?

This dispute also had an interesting paradox - developing countries like Honduras and Dominican republic were alleging a violation of Australia's obligations under the TRIPS Agreement. Normally, the narrative in TRIPS has been that that more flexibilities under the TRIPS Agreement should be utilised by developing countries to further developmental objectives.

I had blogged about this here, here and here.

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