The largest tobacco company Philip Morris started a legal proceeding against Australian laws demanding smoking products to be sold in boring plain packaging from the next year. Other tobacco companies declared that they also would soon follow a suit.

The severe legislation is being observed by governments thinking about similar in Europe, Canada and New Zealand. It has enraged tobacco companies concerned it may violate trademark rights. “The government has adopted the given legislation despite being incapable of proving that it will be effective at decreasing smoking rate and has disregarded the widespread worries raised in Australia and internationally concerning the tough legal issues related to plain packaging,” Philip Morris representative Anne Edwards said in an interview.

According to the given law all tobacco products must be sold in olive green packages without any branding, and carry health graphic warnings. Such tobacco export countries as Dominican Republic, Nicaragua and Ukraine have stated they may also challenge the laws under global trade rules, while Philip Morris declared it had already started an international legal action that could trigger acclaim for damages worth billion of dollars. Philip Morris was also supposed to launch separate inner legal action when the laws acquired final administrative approbation, while British American Tobacco and Imperial Tobacco were also considering challenging the laws in Australia’s Court.

Australia’s Health Minister Nicola Roxon asked tobacco companies respect the passed law. “Tobacco companies are ignoring the Australian parliament regulation and are giving preference to their profits then to lives of Australians,” she stated. The Himalayan nation of Bhutan prohibited the sale of cigarettes earlier this year.

Industry experts state tobacco companies are concerned that plain packaging could cover developing markets as Russia, Brazil and Indonesia and consequently affect the growth there. Legal experts also have forecasted both legal and WTO challenges to fail, as intellectual property rights allow governments the right to adopt laws in order to protect public health.

Conservative opposition MPs, while supporting the laws, prompted Roxon to acknowledge a three month delay on the enforcement of bigger fines for small cigarette sellers in order to allow them time to adapt to the possible effect on sales. Australia already prohibits any tobacco advertisement, smoking in public places and display of tobacco products in shops. In particular states, it is prohibited to smoke in a car if a child is in.

Australian government plans to reduce the number of smokers from about 15% of the population to 10% by 2018. Australia’s cigarette market generated total profits of approximately A$10 billion in 2009, higher than in A$8.3 billion in 2008, although smoking has been in decrease. About 22 billion cigarettes are sold in Australia each year.

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