It seems that Australia is determined to get plain packaging rule in the country. Its determination was visible when it rejected Ukraine's plea that demanded a formation of a body in the World Trade Organization to decide whether the new layw have breached global trade rules.
It may sound astonishing to many, as Ukraine has no cigarette trade tie ups with Australia and yet it has taken such a step. It is so because one of the major subsidiaries of Philip Morris International is in Ukraine, which employs 1,400 people.
Businesses cannot apply as such in the WTO, so Ukraine has taken the initiative by saying that Australia's plain packaging decision is stricter than desired. It can act as an obstacle to the global trade. On the other hand, Australia has refused to accept the request, showing the strong will of the country to get the law.
It is expected that Ukraine will file a request for the second time as well in the WTO meeting, which is scheduled to take place on September 28. It shall be noted that Australia will not be able to reject the plea for the second time. It is also possible that the WTO may take an action against Australia by imposing trade sanctions.
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