After being brought to investor-state arbitration, Australia’s Tobacco plain packaging law had been brought to the attention of the Member States of the World Trade Organization.

Last April 2012, Ukraine and Honduras have already launched the trade dispute and now requested consultations with Australia concerning the measure. Some trade diplomats claim that Dominican Republic might join the other two complainants. Besides, many countries have joined as third party observers to the disputes.

Honduras claimed that the measure is inconsistent with provisions in the TRIPS Agreement, TBT Agreement, and the GATT 1994. Under the TBT Agreement and the GATT 1994, it claimed that the measure constitutes less favorable treatment, violates the national treatment obligation, and creates unnecessary obstacles to international trade.

In fact, the controversial measure, has also been brought to the High Court in Australia by British American Tobacco, Imperial Tobacco, and Philip Morris. These companies claim that the measure infringes their trademark rights.