Six million people die annually as a result of tobacco. Many
governments have adopted the WHO framework for tobacco control and have
since taken measures (policy changes, cessation programs, etc.) to
reduce mortalities and morbidities that occur due to tobacco. Not
surprisingly, big tobacco companies like Philip Morris International
have pushed back against countries that have enacted stringent packaging
laws.
In a much-awaited decision, Australia won an international legal battle
to uphold its tobacco policies that include the plain packaging laws.
Australia has enacted some of the toughest measures to reduce the harm
caused by tobacco and plain packaging laws are among them. These laws
are intended to prevent the tobacco companies from displaying their
distinctive designs, colors or even their brand logos (companies can
include their names and logos, but they cannot have flashy, enticing
packaging). Instead, the companies would be required to use olive-green
packs with health warnings and graphic color images
that would cover nearly 75% of the front of the packs. The Plain
Packaging Act passed by the Australian parliament became law in 2011
and, shortly thereafter, Hong Kong-based PMI sought legal action against
Australia citing that, by stripping logos off the packs, these
stringent laws violated the bilateral investment treaty between
Australia and Hong Kong, thereby severely diminishing their brand value.
This is not the first time Philip Morris has dragged governments into legal battles over stricter anti-smoking and tobacco laws.
While global rate of lung cancer mortality was increasing between
1990 and 2013, owing to stricter anti-tobacco measures, Uruguay saw a
15% reduction in lung cancer mortality. PMI, a company whose revenues
were nearly $80 billion in 2013, sued Uruguay,
a small country of 3 million with a GDP of about $56 billion, in 2013.
The lawsuit was brought to the International Center for Settlement of
Investment Disputes (ICSID) in 2010 and the company is seeking $25
million in damages from Uruguay, once again, citing violation of
bilateral investment treaty between Uruguay and Switzerland. The ICSID
is expected to settle this case by arbitration.
The upholding of the anti-tobacco laws in Australia will hopefully
set a precedent and allow countries to move forward with legitimate
public health actions to curb the global tobacco epidemic without
interference from tobacco companies.
You will find my post and other international health related posts/news round-ups over at the IH blog.
If you want to get this information with some humor sprinkled in- watch John Oliver tear down the tobacco industry
