In the US - Indonesia saga over US' Family Smoking Prevention and Tobacco Control Act (FSPTCA), the WTO Appellate Body (AB) finally ruled in favor of Indonesia on the appealed points by the US. The AB decided that FSPTCA constitutes less favorable treatment to the clove cigarettes and other flavored cigarettes because it did not include menthol cigarette in the measure. Menthol cigarettes and flavored cigarettes are deemed like product. Therefore, the less favorable treatment constitutes violation of Article 2.1 of the Agreement on Technical Barriers to Trade (TBT).

Additionally, the AB also found that the US is in violation of Article 2.12 of the TBT Agreement for failing to allow for a reasonable interval of time between the date of publication of FPSTCA and the date the law went into effect.

The US earlier won on its claim that the measure is necessary to fulfill its legitimate policy objective of reducing teen smokers. This point was not challenged by Indonesia. Nevertheless, with the ruling of the AB, the US will have to bring its measure to compliance with Article 2.1 of the TBT despite such the necessity of its measure.

More details can be found on: http://www.thejakartaglobe.com/opinion/in-the-david-vs-goliath-story-of-kretek-foundations-are-laid-for-future-trade/510737