LAUSANNE, Switzerland--(BUSINESS WIRE)--Feb. 19, 2013--
Philip Morris International Inc.’s (PMI) (NYSE/Euronext Paris: PM)
issued the following statement today regarding the New Zealand
government’s announcement that it will wait to implement standardized or
“plain” packaging for tobacco products until the international legal
challenges pending regarding Australia’s law are decided:
"In her official statement earlier today announcing New Zealand’s plans
regarding standardized packaging, Health Minister Tariana Turia said,
‘the Government will wait and see what happens with Australia’s legal
cases, making it a possibility that if necessary, enactment of New
Zealand legislation and/or regulations could be delayed pending those
outcomes.’
This announcement demonstrates that the New Zealand government
recognizes the significant international trade issues with standardized
packaging and will not implement it until the pending international
legal challenges to Australia’s law are resolved. There is no credible
evidence that standardized packaging will lower smoking rates, but
strong evidence that it will jeopardize jobs, benefit the black market
for cigarettes, and is a breach of international trade rules that have
already made Australia’s policy subject to WTO action.”
Background
There are three avenues of litigation that have been pursued against the
Australian government in relation to this legislation, one at the
domestic level and two at the international level. While the domestic
case has been decided, the international cases remain open and
unresolved.
Currently three countries have initiated proceedings against Australia
before the World Trade Organization (WTO) on the ground that the
standardized packaging legislation is contrary to Australia’s
obligations as a WTO member. Philip Morris Asia (PMA) is also suing
Australia for multiple breaches of its Bilateral Investment Treaty (BIT)
with Hong Kong. Decisions in these cases are expected within two to
three years. In broad terms, these cases will examine a number of
issues, including:
-
Whether there is any valid evidence that standardized packaging will
reduce smoking rates
-
Whether there are effective, less restrictive alternatives that
Australia could have implemented instead
-
Whether standardized packaging breaches Australia’s international
trade and treaty obligations
-
Whether the Australian government will need to pay compensation to PMA.
For more information regarding PMI and our views on standardized
packaging visit www.pmi.com.
Philip Morris International Inc. Profile
Philip Morris International Inc. (PMI) is the leading international
tobacco company, with seven of the world’s top 15 international brands,
including Marlboro, the number one cigarette brand worldwide. PMI’s
products are sold in more than 180 countries. In 2012, the company held
an estimated 16.3% share of the total international cigarette market
outside of the U.S., or 28.8% excluding the People’s Republic of China
and the U.S. For more information, see www.pmi.com.
Source: Philip Morris International
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