Tobacco manufacturer owes huge compensation to Australian Government
Date:2017-7-18 15:13:23 Clicks:507 【Font Size:
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In 2012, the Australian Government implemented plain packaging which stipulates standardized packaging for tobacco products. Tobacco manufacturer Philip Morris will be forced to pay the legal fees for Australia after its failed litigation against Plain Packaging laws.
Philip Morris Asia took a case against Australia’s Plain Packaging to the Permanent Court of Arbitration (PCA) in The Hague on the basis of a bilateral trade agreement between Australia and Hong Kong. This month, PCA publicized the court decision made in March 2017. The decision criticized that the case was "an abuse of rights." Philip Morris Asia is liable to pay Australia’s claim for legal costs, estimated around US$38 million.
As the decision of PCA announced, all domestic and international litigations initiated by tobacco industry against Australia’s Plain Packaging are lost. Likewise, the industry also tried to hinder the enlargement of pictorial health warnings in Uruguay in 2010, and plain packaging legislation in UK in 2016. The tobacco industry suffered from a defeat on both cases.
These cases revealed the sound legal grounds to strengthen tobacco control measures. The Government should take bold steps to implement more stringent and effective measure, i.e. plain packaging, in order to encourage smoking cessation and prevent the industry from using cigarette packs as promotion.