Ukraine drops plain-packaging lawsuit against Australia

Ukraine has suspended the legal proceedings it brought against Australia through the World Trade Organization (WTO) in 2012, which claimed the country’s plain-packaging laws were trade-restrictive. Instead, the Eastern European nation—which received financial support from British American Tobacco to pursue litigation—has stated it will attempt to seek a mutually agreed-upon solution with Australia to resolve the issue.

Ukraine was the first of five countries to challenge Australia’s plain-packaging laws at the WTO, despite the fact that Ukraine does not currently export tobacco to Australia. The other countries who have launched lawsuits against Australia—Indonesia, Cuba, Honduras and the Dominican Republic—have not announced any plans to drop their lawsuits challenging the strict packaging laws banning company logos and requiring cigarettes to be sold in olive-colored packages with brand names printed in standardized fonts.

According to WTO rules, Ukraine’s suspension could last one year, after which time its right to return to the panel proceedings will lapse. The WTO adjudication panel is expected to rule on the remaining plain-packaging lawsuits in the first half of 2016.