587. Indonesia appreciates Ukraine's initiative to bring this issue to today's Council meeting. Indonesia has a very strong interest in the Plain Packaging case because the measures threaten the export interest of tobacco producing countries.
588. Indonesia's cigarette industry accounts for approximately 1.66% of Indonesia's total gross domestic product. It is the second largest industry in Indonesia and supports the employment, both directly and indirectly, of approximately 6.1 million people, including tobacco and clove farmers and factory workers. More than half of Indonesia's citizens live in rural areas where agriculture and cigarette industries are the main sources of income. Indonesia exports its cigarettes all over the world and exported approximately US$700 million in tobacco products in 2013. Indonesia brings this dispute to protect its interests in these exports.
589. Most countries, including Indonesia, recognize that tobacco use in various forms can lead to disease and in some cases premature death. However, just because tobacco use is bad does not mean every form of tobacco control is good. Thus Members must honor their WTO obligations.
590. Indeed the WTO provides wide latitude to Members to pursue legitimate public policy objectives such as smoking prevention. In fact, even though the Australia Tobacco Plain Packaging Panel of Indonesia with other complainants has been established, none of the complainants in the Plain Packaging dispute in this regard are challenging Member's right to restrict the advertising of tobacco products, labeling requirements, point-of-sale restrictions, mandatory health warnings, and the numerous other measures to reduce the consumption of tobacco products and lower smoking prevalence rates within its borders. However, the plain packaging measures are not in conformity with some WTO Agreements.
591. In particular, Indonesia is not challenging the requirement of plain packaging measures to display graphic health warnings on 75% of the front surface, 90% of the back surface, and large portions of the side surface. In fact, Indonesia recently adopted its own set of rules requiring graphic health warnings on tobacco products.
592. However, studies by multiple researchers using a range of data sets and different analytical approaches have failed to find any empirical evidence that plain packaging measures implemented by a certain Member are reducing the prevalence of smoking in the general population or among youth, who were predicted to be particularly affected by plain packaging. After nearly two years of plain packaging, there is zero evidence from any of the available survey data that plain packaging is having a positive impact on consumer behavior. Plain packaging has failed to bring about the declines in tobacco prevalence predicted by its proponents. It is not working and is not likely to work.
593. Against this background, Indonesia argued that plain packaging measures violate no fewer than seven provisions of the TRIPS Agreement, among others but not limited to the provisions of Articles 2.1, 15.4, 16.1. 16.3, 20, 22.2(b) and Article 24.3.
594. Indonesia urges other Members in the process of introducing similar measures to reconsider their intention until the disputes are solved. We would also like to request those Members to evaluate alternative measures which are more effective in achieving the health objective, and more importantly, consistent with WTO rules.
595. Indonesia appreciates the opportunity to present its views on the plain packaging regime and its consistency with numerous provisions of the TRIPS Agreement.
