Business Groups Concerned over New Zealand Tobacco Legislation
Business groups are angry over New Zealand’s recent announcement of legislation mandating plan packaging of all tobacco products, which they claim violates the country’s international trade obligations. The proposed legislation effectively eliminates “the right of a business to use its trademarks in every-day commerce,” said a statement released Feb. 20 by a list of business advocacy groups, including the Chamber of Commerce, U.S. Council for International Business and the National Foreign Trade Council.
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Plain packaging means cigarette and tobacco products will have large, graphic picture health warnings. The legislation is similar to that passed in Australia last year. New Zealand’s government said it will wait for the outcome of Australia’s legal cases related to that law before enacting their own legislation. The New Zealand government announcement about the proposed legislation is here.
The letter from U.S. business groups said New Zealand’s approach is “contrary to regulatory best practices” and will facilitate illicit trade and counterfeiting.
New Zealand’s government has said the legislation will help educate consumers about the health risks of smoking, and counter the sophisticated packaging designs tobacco companies use.
In the letter, business groups refute that claim, adding "Science and evidence are essential to ensure that regulations advance a legitimate governmental objective and do not unnecessarily impede trade.” The signers of the letter are: U.S. Chamber of Commerce, the National Association of Manufacturers, the Emergency Committee for American Trade, the U.S. Council for International Business, the National Foreign Trade Council, the Transatlantic Business Council and the U.S-ASEAN Business Council.