US pushes anti-tobacco compromise in Pacific trade deal
Governments will be allowed to block tobacco companies from suing
over anti-smoking measures under a US proposal being considered by
Pacific trading partners as part of a free trade deal involving a dozen
countries.
The exemption proposed in Atlanta, Georgia, where ministers are
trying to close the Trans-Pacific Partnership trade deal, would allow
any of the 12 member countries to opt out of rules aimed at protecting
foreign investors from harmful government policies with regard to
tobacco control measures.
The TPP seeks to cut trade barriers and set common standards for 40% of the world economy.
If governments trigger the exception, they would have free rein on
tobacco regulation without being challenged in a trade tribunal.
The US proposal, seen by Reuters, could prevent companies like
Marlboro maker Philip Morris and Japan Tobacco Inc from using rules,
which aims to protect foreign investors, to push back.
One of the most high-profile cases using the rules that protect
foreign investors involves Philip Morris suing Australia over tobacco
plain-packaging laws that ban branded cigarette packs. The company said
this undermines its intellectual property.
