The Gillard government has been cautioned that its plan concerning plain packaging of cigarettes could lead to a diplomatic row with the World Trade Organization (WHO).

Business leaders from many countries have declared that Australia could infringe WTO requests with their plan. Japan Tobacco International (JTI), which is part of the leading Japan Tobacco Group of Companies that produce popular Camel cigarettes and More cigarette, states that the given law could lead to a number of disputes under the WTO framework. The representative of the group also said that the law was “likely to affect Australia’s reputation with international investors.”

And in the current warning by an offshore working party, the Kenya Association of Manufacturers has stated the actions demonstrate that a government does not protect the private sector. “The government can quickly take away the legitimate interests of businesses with insignificant regard for the consequences in the name of public health policy which is very risky”.

The recent comments add to the increasing concerns about heightened country risk in Australia, mainly after the dissensions debate over both the minerals resources rent tax and the carbon tax. Currently, the US coal giants and the Business Council of Australia are worried about the matter. The Kenyan group, which declares the East African nation depends on tobacco industry for profits and foreign exchange, has prompted the government to delay the introduction of plain-packaging law.

Repeating the worries raised by JTI, the Kenyan group declared that the government should participate in the talks with other nations and inform them about its plans, thus evading all potential discrepancies and discriminatory measures that may occur in formal debates or diplomatic rows with counties that may be negatively impacted by the given legislation.

In accordance with the government plan all cigarette packages would have only the brand name written in a plain12-point Helvetica font, without any logos or other trademarks. Business Europe, which represents tobacco industry from over 35 countries, has also strongly criticized the plan, stating that it doesn’t correspond to international treaties on intellectual property negotiated through the WTO.

The group declares that the government’s plan might weaken the integrity of the world intellectual property system not only in Australia but also in other part of the world where extension of the protection of these regulations can be far less strong.

Trade Minister Craig Emerson refused to comment on the situation at hand. The plain packaging plans are backed by both political parties and health experts, despite being criticized by various industry groups from Brazil, Chile, East Africa, Peru and Ukraine.

By Clark Moore, Staff Writer Copyright © 2011 Hot-Cigs.com All rights reserved.