Yesterday the Dominican Republic called for WTO consultations with Australia on its ?measures concerning trademarks, geographical indications and other plain packaging requirements applicable to tobacco products and packaging?.

The Australian legislation, which is set to come into force in December this year, prohibits the use of brand colours and logos on tobacco packaging. It is understood that the tobacco products will have to be sold in plain packaging being olive green packs. Tobacco companies will only be allowed to print their name and the brand in a small prescribed font on the packaging.

The Dominican Republic's request for consultations is the first step in WTO dispute settlement. Should Australia fail to answer the request for consultations within 10 days, the Dominican Republic will be allowed to request that a WTO Panel be established to adjudicate the dispute. If Australia does answer the consultation request, consultations will have to start within 30 days. The Dominican Republic will again have the right to request the establishment of a WTO Panel if consultations do not start within 30 days. Should the consultations fail to deliver a settlement after 60 days of the request for consultations, the Dominican Republic may again request that a WTO Panel be established.

This is the first time that the Dominican Republic has initiated a WTO dispute. Thus far it has only been involved in three WTO disputes as a third party along with a host of other countries. In requesting consultations, the Dominican Republic adds its voice to growing concerns over the Australian legislation. Ukraine requested consultations with Australia on the same legislation on 13 March this year. Brazil, Canada, the European Union, Guatemala, New Zealand, Nicaragua, Norway and Uruguay joined the consultations as third parties. Honduras also requested consultations with Australia on 4 April 2012. Subsequently Brazil, Canada, El Salvador, the European Union, Guatemala, Indonesia, Nicaragua, New Zealand, Norway, the Philippines, Ukraine, Uruguay, and Zimbabwe joined the consultations as third parties. We will have to wait and see who will join the Dominican Republic.

For further information on our WTO dispute settlement practice, kindly do contact us.

Rian Geldenhuys
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