ASIA-PACIFIC – JUNE 28, 2011 – The saying goes you can’t fight city hall, but tobacco giant Philip Morris is willing to take a shot.
Reuters reports that the Australian government expects a law requiring cigarette packaging to be stripped down as "brandless", rendering it less attractive to consumers, to take effect by January 2012. The plain pack will be colored olive green, marked only by a tobacco regulation warning, a graphic image of the consequences of tobacco, and the brand name.
Philip Morris Asia is threatening to sue the Australian government over the plans, the first of its kind in the world, as other countries consider enacting similar laws. Philip Morris issued a statement announcing that it has served notice of legal claim on the government, using the country’s bilateral investment treaty with Hong Kong, which holds the government responsible to protect Hong Kong investments in Australia.
The legal claim requires both parties to negotiate an outcome over a three-month period. If there is no agreement, Philip Morris would seek compensation that will be determined by United Nation trade rules.
Source: Reuters
Image: elycefeliz CC BY-NC-ND 2.0
