Philip Morris Continues Battle against Plain Packaging

Despite losing in the Australian High Court, multinational tobacco corporation Philip Morris is not backing down and has even brought the fight to an offshore court.

The tobacco company has alleged that the Tobacco Plain Packaging Act is a breach of the 1993 agreement between the Australian and Hong Kong government on the Promotion and Protection of Investments.

Philip Morris International, through Philip Morris Asia, said the laws are detrimental to the company’s investments in its Australian operations. The company also said that the investments are protected by a trade treaty.

The Australian government, however, said the claim is bogus because Philip Morris Asia invested in its Australian business only one year after it was announced that the government is pushing for plain packaging of cigarettes.

The government said acquiring a stake in the Australian operations was done “in full knowledge” of things to come.

The case is currently being reviewed in the Permanent Court of Arbitration, an international body. Reports showed that Philip Morris attempted to have court submissions suppressed. The Australian government, however, succeeded to have these documents released.

The international body also ordered both parties to publish the documents filed for the proceedings.

It was in 2010 when the Australian government announced the introduction of plain packaging. The legislation was passed in November 2011.