Tobacco giant sues Australian government

Australian government is being sued by tobacco giant Philip Morris for law making plain cigarette packaging mandatory from December 2012.

Philip Morris Asia is suing Australian government for mandatory law for plain tobacco packaging.
Philip Morris Asia is suing Australian government for mandatory law for plain tobacco packaging.

The Australian government is being sued by tobacco giant Philip Morris for a new law to make plain packaging for cigarettes mandatory as from December 2012.

The new legislation was passed by Australia’s parliament and means that all tobacco would will have to be sold in plain olive-brown coloured packets with graphic health warnings.

Canberra, the capital city of Australia, said the law would be one of the most momentous public health measures in Australian history.

Philip Morris Asia said a notice of arbitration had been served by the company under Australia’s Bilateral Investment Treaty with Hong Kong because it said the move was a breach of the treaty.

PMA’s Australian affiliate Philip Morris Ltd (PML) said it would also be pursuing claims under Australian domestic law.