Late last week, the Dominican Republic requested the establishment of a panel under the dispute settlement procedures of the World Trade Organization (WTO) challenging Australia’s plain packaging measures for tobacco products.
Starting Dec. 1, Australia will mandate that all tobacco products be sold in plain packaging. Packaging will be a standardized drab brown color, with the brand and variant name in a standardized font and place, banning all logos or other design features. This move will prevent tobacco products from using their well-known trademarks and geographical indications, the republic stated in a press release.
These unprecedented measures will undermine the Dominican Republic's tobacco industry, in particular its premium cigar sector. By prescribing standardized plain packaging, the tobacco market will be driven towards commoditization, with declining prices, and increasing — rather than falling — consumption and illicit trade.
In June, the Ukraine and Honduras diplomats filed trade disputes with the World Trade Organizations protesting the Australian plain packaging law, informs NACS Online.
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