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Philip Morris fights Australia over cigarette packaging

An Egyptian man lights a cigarette in Cairo on June 10, 2010.

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STEVE CHIOTAKIS: Tobacco giant Philip Morris is now threatening to sue Australia saying the government there is violating international law by requiring all cigarette packs be sold in generic packages with pictures of diseases caused by smoking.

Reporter Stuart Cohen joins us from Sydney to explain. Good morning, Stu.

STUART COHEN: Good morning.

What is Philip Morris accusing the Australians of doing, exactly?

COHEN: It's a bit technical. All Phillip Morris cigarettes that are sold in Australia are actually sold by 'Phillip Morris Asia' -- which is based in Hong Kong. So what Philip Morris says is that forcing removal of its trademarks from its products would violate the terms of a investment treaty Australia has with Hong Kong. That's something the company says is enforceable under United Nations trade rules, and they're seeking billions of dollars in compensation if the law goes ahead.

Phillip Morris Asia's spokeswoman Anne Edwards talked with the Australian media today and here's what she had to say.

ANNE EDWARDS: By attempting to take our company property, which is what the government is essentially doing, it's a very, very clear violation of the investment treaty that Australia has with Hong Kong.

CHIOTAKIS: Stuart, the U.S. just put out its new packaging and there are scary images, and big tobacco was saying that the government was violating laws here in this country. Could the legal debate down there spread back here to the United States?

COHEN: Well, Australia is really the canary in the coal mine with this whole thing. The rest of the world is watching and any successful challenges to the Australia law will certainly be tried in the U.S. and of course any other countries working on similar laws.

CHIOTAKIS: All right, Stuart Cohen in Sydney. Stuart thank you.

COHEN: Always a pleasure.

Bob Greene's picture
Bob Greene - Jul 25, 2011

With the iminent birth of our first child in April 1957, I decided to go "cold turkey", tossed out half a pack of cigarettes, and have not had a moment of regret since.

I mourn the loss of family members who were unable to quit smoking, and saddened to see high school children walking down the street with cigarettes in their mouths.

I recognize the right of tobacco companies to exist, but am more than a little annoyed by their right to add chemicals to the products to enhance the addictive qualities of the product. I am 100% against U.S. laws and subsidies which give tax breaks and other benefits to already obscenely rich tobacco corporations whose product causes such misery and sickness to its users.

I think that laws should be changed to: 1) end tax breaks and subsidies to tobacco growers, manufacturers and others in the distribution chain, while eliminating tax loopholes to tobacco companies; 2) enact Draconian laws to prevent adding flavorings or chemicals tobacco products; 3) limit print advertising to statements of fact, including brand name, without persuasive wording or photos, 4) prohibit smoking in enclosed rooms or spaces where children under the age of 18 are present; 5) end U.S. export or import of tobacco products.

As with marijuana, laws to stop import and export of tobacco would be nearly impossible to enforce, but, would add a layer of official disapproval to assist in a small way in the education of our children.

Indeed, as I read what I have just suggested, I know that it is merely wishful thinking, but the pain of seeing the needless early death of family members is almost unbearable.