A new Australian draft law that would require cigarettes and eventually other tobacco products to be sold in plain packages, has triggered a controversy, with some countries apprehending violation of trademark rights.

Taking the issue before the WTO Intellectual Property (TRIPS) Council, some countries have complained that the new law would hurt tobacco producers in small and vulnerable economies. It would fail to reduce smoking because the lower costs of the packaging and the competition on price — the only remaining marketing tool available — would make cigarettes cheaper and encourage higher consumption. It would also make counterfeiting easier.

Australia has, on its part, explained that higher excise duties and the possibility of using anti-counterfeiting labelling would make the cigarettes more expensive and prevent smuggling. Australia will do this in a way that complies with its international obligations.

New Zealand, Uruguay and Norway said Australia’s draft law is justified. India did not comment on the law specifically but said studies show that plain packaging does reduce smoking.