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Wednesday, 21 December 2011

Roxon accuses tobacco giant of trick in packaging fight

THE Gillard government is accusing tobacco giant Philip Morris of engaging in corporate restructuring as a ''trick'' to find new legal avenues to challenge its cigarette plain packaging laws.

The government is arguing a challenge by the company under a bilateral trade treaty with Hong Kong should be thrown out because the company's Asian division did not acquire its shareholding in the Australian arm until almost a year after the plain-packaging policy was announced.

Philip Morris Asia, based in Hong Kong, is claiming substantial compensation in its complaint that the laws have an adverse impact on its Australian investment, which was supposed to be protected under the 20-year-old treaty.     Full Read

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