WTO Panel Established In Honduras Case Vs. Australia Tobacco Packaging

The World Trade Organization Dispute Settlement Body has established a panel on a complaint by Honduras against Australia’s measure to require tobacco to be sold in plain packaging as a public health measure.

According to WTO, in the 25 September DSB meeting, Honduras expressed its concern that Australia’s measures regulating the plain packaging of tobacco products were “inconsistent” with Australia’s obligations under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and the Technical Barriers to Trade (TBT) Agreement.

Australia said that its tobacco plain packaging legislation “did not undermine the protection afforded under the TRIPS Agreement nor was it more trade restrictive than necessary to fulfil its legitimate public health objective,” WTO said. The measure is origin neutral, non-discriminatory and applied to all tobacco products regardless of origin, it said.

Australia requested that a single panel be formed to examine the request of Honduras and an earlier request by Ukraine, but Honduras said no.

The first request by Honduras had been blocked by Australia, as allowed under WTO rules. Panel requests follow an initial period of consultations, which failed to resolve the differences. The panellists have not been named yet.

The case is (DS435) Australia — Certain Measures Concerning Trademarks, Geographical Indications and other plain packaging Requirements Applicable to Tobacco Products and Packaging. Background on the case is available here.

A recent list of the status of five WTO cases related to the Australian tobacco measure is here (IPW, WTO/TRIPS, 22 September 2013).