399. The representative of Nicaragua said that his delegation wished to join previous speakers who had expressed concerns regarding Australia's Tobacco Plain Packaging Bill 2011 and the implementing regulations thereof. The consultation paper confirmed that the measure would apply not only to cigarettes but also to cigars, one of Nicaragua's main export products, and proposed making retail packaging for cigars the same ugly dark grey as proposed by Australia for tobacco products. This measure would seriously undermine the protection of IPRs and unnecessarily restrict trade in cigars in the same way as the measure that the Australian Government seeks to apply to cigarettes.
400. He said that the Government of Nicaragua and various other governments had already raised concerns and questions regarding the legislation that Australia was now seeking to apply with equal effect to cigars and other tobacco products, both at a bilateral level and within the WTO. Unfortunately, the Australian Government had not provided any substantive responses to these questions and concerns regarding the WTO consistency of such measures. Nicaragua recognized Australia's right to legislate to protect public health, provided that such measures were consistent with WTO rules and other existing international treaty commitments. However his delegation believed that, regrettably, the proposed measures fall far short of WTO compliance and would set a harmful precedent that would undermine protection for IPRs in Australia and other countries.
401. It was his delegation's view that, while the measure would not hinder tobacco consumption in Australia, it would have significant negative economic and social repercussions in a considerable number of the countries represented in the WTO, the vast majority of which were developing countries with small economies.
