Australia may be hit with the third WTO suit over tobacco packaging

Australia looks set to attract a third complaint at the World Trade Organisation (WTO) about its planned tobacco packaging laws.

British American Tobacco, Imperial Tobacco and Philip Morris have challenged the Australian legislation in High Court, under which they would be forced to use drab packaging with disturbing images of the health impacts of smoking.

Trade disputes have already been launched in the Ukraine and Honduras over the issue, with reports that the Dominican Republic was about to join the complaint.

None of those three countries have a significant share of the Australian tobacco market. However their contention is that the planned laws unfairly restricted trade.

According to the head of the federal health department, Jane Halton, the tobacco companies were providing legal advice to WTO members to encourage them to take action against Australia.

She spoke about it in a video message for the World Health Organisation.