Third Strike: The WTO Panel Reports Upholding Australia's Tobacco Plain Packaging Scheme

Abstract

Two of the four disputes against Australia’s tobacco plain packaging in the World Trade Organization (WTO) have been resolved, with the adoption of the Panel Reports upholding Australia’s tobacco plain packaging scheme with respect to Cuba and Indonesia. The fifth dispute, brought by Ukraine, was previously abandoned. The Panel’s decision deserves close examination, particularly regarding the balance between WTO Members’ legitimate policy objectives and restrictions on trade or on the use of trademarks. The Panel’s approach to the fundamental concepts of trade-restrictiveness and unjustifiability did not conform with the arguments of Australia or the complainants. These areas represent core aspects of the ongoing appeals by Honduras and the Dominican Republic. Although Australia did not appeal, its own arguments before the Panel provide further insights into the Panel’s approach. The significance of the Panel Reports is heightened by the continuing United States blockage of appointments to the WTO Appellate Body.