Big Tobacco loses again in court

Action on Smoking and Health New Zealand (ASH) congratulate Uruguay’s stand against big tobacco and pushing their right to protect the health of their people.

The World Bank's International Centre for Settlement of Investment Disputes (ICSID) has ruled in favor of Uruguay in a suit filed by Philip Morris International. The suit sought compensation for economic damages caused by the nation's anti-tobacco measures.

Phillip Morris International demanded that Plain Packs regulations be withdrawn, not applied to their company or that their company is paid $US22 million ($NZ30 million) in damages.

Instead, ICSID ordered Phillip Morris International to pay Uruguay, $US7 million to cover "all the fees and expenses of the Tribunal and ICSID's administrative fees and expenses”.

ASH Director Stephanie Erick says, “Uruguay won their case, this is great news for others also progressing plain packs in their respective countries.”

“No doubt Phillip Morris will go to whatever extent to ensure their harmful product continues to expand and grow. So, the international movement towards plain packaging as part of a wider move to get rid of corporate tobacco is excellent.”

Notes:

Uruguay imposed a ban on smoking in public spaces in 2006, raised taxes on tobacco products and forced firms to include large warnings and graphic images, including diseased lungs and rotting teeth, on cigarette packages.

It also banned the use of the words "light" and "mild" from cigarette packs to try to dispel smokers' misguided beliefs that the products are safer.

"The health measures we implemented for controlling tobacco usage and for protecting the health of our people have been expressly recognised as legitimate and also adopted as part of the sovereign power of our republic," said Uruguayan President Tabare Vazquez said in a televised speech.

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