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June 1, 2011

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Aussie smoke law tough on packaging

AUSTRALIA is set to pass the world's toughest anti-smoking laws, forcing big tobacco companies to use plain green cigarette packaging after opposition lawmakers dropped concerns yesterday and said they would back the government's plan.

Conservative opposition leader Tony Abbott said his pro-business party would not oppose the laws when they came before parliament later this year, but would attempt some minor and still unspecified changes.

"We will seek to amend the legislation to ensure it really does bring smoking rates down," Abbott said, ending weeks of indecision on whether to back the minority Labor government amid threats of tobacco industry legal action.

Australia's tobacco market generated total revenues of A$9.98 billion (US$10.7 billion) in 2009, up from A$8.3 billion (US$8.86 billion) in 2008, although smoking generally has been in decline. Around 22 billion cigarette sticks are sold in the country each year.

Health authorities say smoking-related illnesses kill more than 15,000 Australians each year and cost the economy A$31.5 billion (US$33.62 billion) in health costs.

British American Tobacco, whose brands include Winfield, Dunhill and Benson & Hedges, said the government's plans would infringe international trademark and intellectual property laws, flagging a legal challenge.

New Zealand, Canada, the European Union and Britain are considering similar laws and governments in those countries are closely watching to see if Australia succeeds. Analysts say plain packaging could spread to emerging markets like Brazil, Russia and Indonesia, and threaten growth there.



 

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