The role private arbitration is a major sticking point in free trade agreements. Can bring, for example, tobacco companies such laws to the case? Now there is a decision in a landmark case.
The well-known for very strict smoking laws South American state Uruguay has won a six-year trial against the tobacco giant Philip Morris. The Based at the World Bank International Court of Arbitration ICSID in Washington have the action points of the group “completely rejected”, said President Tabaré Vázquez in a speech in Montevideo.
In Uruguay smoking in restaurants and other buildings is prohibited and there is a ban on advertising, the packages are provided with large, dramatic warnings, and cigarettes can not be sold as “Lights” also. In addition, tobacco taxes were increased again. Philip Morris (including Marlboro) did not want to accept and also obtain high compensation measures.
fight against smoking
Vázquez called on the international community to follow the example and in the fight against not to let the damage from smoking intimidated by corporations. He had brought in his first term from 2005 to 2010, the smoking laws on the way, in 2010 it came to the action brought by Philip Morris.
As the portal “El Pais “reported that the Group of the Uruguayan government must now reimburse seven million US dollars for legal fees in the process. The Group, headquartered in the United States accounts for about ten percent of its billion business in the Latin American market – but he recently struggling world because of the tightening of smoking laws with losses
“We reaffirm our right to fight against the consumption. of tobacco, “said Vázquez. It is not permissible “to make commercial aspects of the defense of the fundamental rights to life and health”.
role of private arbitration
The case is also in view of the debates on the the free trade agreement between the EU and Canada (Ceta) as well as between EU and USA (TTIP) interesting as the role of private arbitration is this a major point of contention. Critics fear precedents when companies could cut short in this way unpleasant laws in countries – what is in Uruguay now failed
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