REPUBLIKA.CO.ID, GENEVA -- Indonesia sued Australia to the World Trade Organization (WTO) related to policy about plain packaging of tobacco products which were applied in the kangaroo country. This trade dispute was the biggest and joined by three other countries in the same lawsuit, namely Honduras, the Dominican Republic, and Cuba.

Director General of International Trade Cooperation of Trade Ministry, Bachrul Chairi said, the obligation to use plain packaging of tobacco products is against the right of WTO members under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. According to him, consumers have a right to know the products that will be consumed and on the other side manufacturers also have the right to use the trademark.

"Australia’s policy become a sensitive issue and has broad implications for world trade, and this could potentially hamper Indonesian cigarette exports," said Bachrul in a release received by ROL on Friday, June 5.

According to Bachrul, this lawsuit filed to safeguard the national interests. Moreover, the tobacco industry accounted for 1.66 percent of the Gross Domestic Product (GDP) of Indonesia. In addition, the industry also contributed to foreign exchange through exports to the world with a value of 700 million US dollars.

Bachrul said, the tobacco industry was very important for Indonesia, because the industry was a source of livelihood for 6.1 million people, including 1.8 million tobacco and clove farmers.

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