A ruling is expected in May or June 2016 from the World Trade Organization on Australia’s plain packaging regime that has affected Dominican cigar sales since 2012. Some countries like Australia have adopted plain packaging as a measure for reducing smoking rates and combating the harmful effects of tobacco.
Recently, the DR in its defense invited a group of journalists to the country to witness how cigars are part of Dominican culture, seeking to create public opinion in their favor. The Dominican Republic was one of four countries (the others being Cuba, Honduras and Indonesia) to bring a complaint before the WTO against Australia’s plain packaging regime.
The Dominican government is pursuing the case because it “believes Australia violated core WTO rules that protect IP and trademarks, and chose to take a stand”. The actions are to defend Dominican growers, producers, the industry, Dominican heritage and future. The DR stresses that the Dominican Republic cultivates tobacco because of “long-held traditions”
“Tobacco is part of the historical fabric of our country n fathers have passed down their tobacco business to their son for generations,” Karina Naut, director of the Foreign Trade Agency (Dicoex) of the Ministry of Industry and Commerce, told the visiting journalists.
Meanwhile, the Dominican Republic’s permanent ambassador before the WTO, Luis Manuel Piantini, echoed this message. The Dominican Republic is the largest net exporter of cigars in the world. Tobacco products represent 8.5% of fiscal revenue on merchandise taxation. There are around 5,500 tobacco producers, employing approximately 55,000 agricultural workers. Tobacco manufacturing employs another 63,000 people, of whom 60% are women. Combined with the entire tobacco production chain, the industry thus generates around direct 118,000 jobs that support approximately 350,000 people, according to information published by the Dominican Republic Tobacco Institute.
The Dominican tobacco industry exports accounted for approximately US$780 million in 2015, representing a sizeable chunk of the country’s total exports.
Piantini stated: “We call tobacco the “democratic crop” because of the number of families on our small island who rely on it. Tobacco represents our heritage, our history and our traditions, and that is why we are so passionate about fighting this case.”
Other countries like Canada, Ireland and New Zealand are also considering the plain packaging measure. In the UK, cigars were exempt from the plain packaging ruling on tobacco products.
http://www.worldtrademarkreview.com/Blog/detail.aspx?g=8629c94d-68c4-4381-88a8-7e7db3de7555
