Indonesia, the world’s largest producer of flavored cigarettes, has won a tobacco dispute with the United States after the World Trade Organization (WTO) ruled in its favor,declaring that the USA ban on clove cigs was discriminatory as the country still permitted sales of flavored tobacco products. The Trade Ministry’s international trade cooperation head, Iman Pambagyo, welcomed the new legislation, explaining that Indonesia’s winning the case would be very important not only for Indonesia, but also for other big countries.
The government would also continue in its commitment to international covenants under the WTO, particularly regarding the technical barriers to trade (TBT) the new agreement, he reported.
“All countries must respect the new changes. With the new ruling, we expect other countries will not leave the US’ move,” he added in a statement.
The WTO’s appeals body ruled on Wednesday that the US had been discriminatory in its ban on sales of flavored cigarettes as it continued to permits sales of such smoking products, especially menthol-flavored cigs. The US government has expressed its frustration over the outcome of the debate.
“The ban on cigs with flavors is a main part of landmark US legislation for to combat the public health crisis caused by smoking products,” Nkenge Harmon, spokeswoman for the US Trade Representative’s Office, declared as quoted by Reuters. The office was also examining its new options in fulfilling with the law, she noted.
USA compliance through banning sales of all menthol cigs will affect its local tobacco makers, like Lorillard Inc, the Philip Morris USA unit of Altria Group, RJ Reynolds Tobacco Co. of Reynolds American Inc., and of course Liggett Vector Brands LLC.
Indonesian authority considered that the new legislation is discriminatory as the USA still continue to permit sales of menthol smoking products, which are manufactured by its local cigarettes makers and also consumed by more than 19 million smoking Americans.