Leading Business Organizations in the U.S. Issue Joint Statement in Opposition to Australian Government's Proposed Tobacco Plain/Standardized Packaging Legislation

By Us Chamber Of Commerce, PRNE
Tuesday, June 7, 2011

WASHINGTON DC, June 8, 2011 -

The U.S. Chamber of Commerce, the National Association of Manufacturers,
the United States Council for International Business, the National Foreign
Trade Council, the Emergency Committee for American Trade, the US-ASEAN
Business Council and the TransAtlantic Business Dialogue today issued a joint
statement regarding a proposal being considered by the Australian Government
to mandate standardized plain packaging for all tobacco products.

The business groups stated, "We recognize the right of the Australian
Government to implement regulation to control tobacco products. However,
plain packaging risks establishing a precedent of IP destruction for an
entire industry through government mandate that would be very damaging to the
legitimate interests of trademark owners to associate their brands with their
products, a fundamental protection under trademark law."

They also pointed out, "Furthermore, protecting intellectual property
rights and advancing public health are mutually reinforcing. Australia has
always been willing to stand up for trade rules, and we have stood up with it
to advance the global trading system. We are strongly convinced that the
plain/generic packaging proposal will have a detrimental effect on the
integrity of the protection of intellectual property around the world, while
its potential effects on public health are not encouraging either. The
effects of enacting an obvious violation of those rules such as plain
packaging should concern the Australian Government enough to seek alternative
approaches consistent with its international trade obligations."

A copy of the complete statement is below.

U.S. Business Community Statement in Opposition to Australian
Government's Proposed Tobacco Plain/Standardized Packaging Legislation

Australia's plain packaging proposal raises serious questions about its
conformity with Australia's international trade obligations that concern us
greatly.

We recognize the right of the Australian Government to implement
regulation to control tobacco products. However, plain packaging risks
establishing a precedent of intellectual property destruction for an entire
industry through government mandate that would be very damaging to the
legitimate interests of trademark owners to associate their brands with their
products, a fundamental protection under trademark law. The WTO Agreement on
Trade-Related Aspects of Intellectual Property Rights (TRIPS) states very
clearly that trademarks cannot be required to be used in a special form, as
they would be with plain packaging. The limited exceptions allowed under
TRIPS do not extend to restrictions such as plain packaging which break apart
the nature of the trademark in contravention of WTO rules.

Moreover, we have genuine concerns that plain packaging will incentivize
further the already growing incidence of counterfeit, smuggled and other
illicitly traded goods being sold in Australia. There can be little question
that plain packaging will make it easier for contraband or counterfeit
products to enter the market. This will augment the inevitable downward
pressure on prices of legally sold goods when brands are undermined and the
market moves toward commoditization. The economic incentives to avoid the
legal system will overwhelm any enforcement effort detailed in the
legislation. As a country that has supported the Anti-Counterfeiting Trade
Agreement (ACTA), Australia should be particularly concerned about these
consequences.

Australia's wine and beverage, processed food, clothing, manufacturing
and creative industries - all of which rely on intellectual property and
trademarks for their identity - employ hundreds of thousands of Australians
and account for up to a quarter of Australia's exports. Without the surety of
internationally enforceable rules to provide trademark protection, the
success of those businesses in the international marketplace cannot be
secured.

As representatives of American and international business, we rely on the
rules-based international trade framework and its supporters to sustain
economic growth, employment, innovation and prosperity. Furthermore,
protecting intellectual property rights and advancing public health are
mutually reinforcing. Australia has always been willing to stand up for trade
rules, and we have stood up with it to advance the global trading system. We
are strongly convinced that the plain/generic packaging proposal will have a
detrimental effect on the integrity of the protection of intellectual
property around the world, while its potential effects on public health are
not encouraging either. The effects of enacting an obvious violation of those
rules such as plain packaging should concern the Australian Government enough
to seek alternative approaches consistent with its international trade
obligations.

    For additional information please contact:

    US Chamber of Commerce, J.P. Fielder, +1-202-463-5682

    Emergency Committee for American Trade, Cal Cohen, +1-202-659-5147

    National Association of Manufacturers, Frank Vargo, +1-202-637-3144

    National Foreign Trade Council, William Reinsch, +1-202-887-0278

    US Council for International Business, Jonathan Huneke, +1-212-703-5043

    TransAtlantic Business Dialogue, Kathryn Hauser, +1-202-775-3269

    US ASEAN Business Council, Anthony Nelson, +1-202-416-6708

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