WTO To Rule on U.S. Clove Cigarette Ban Sources

Indonesia alleges U.S. clove cigarette ban is unfair, while the U.S. says that it applies uniformly to clove cigarettes from all countries.

July 22, 2010

GENEVA, SWITZERLAND - The World Trade Organization (WTO) will issue a ruling on a dispute between Indonesia and the United States over a U.S. ban on clove-flavored cigarettes, Reuters reports.

Indonesia alleges the U.S. is abusing health regulations as it bans clove cigarettes while allowing U.S. tobacco manufacturers to continue marketing menthol cigarettes. In response, the U.S. maintains flavored tobacco attracts young people to smoking, and that the ban applies uniformly to clove cigarettes from all countries.

The WTO's dispute settlement body agreed to establish a panel to rule on the dispute.

Indonesia said its clove cigarettes have been shut out of the U.S. since September 2009, and that it had been trying to resolve the issue. It said it could not wait for the U.S. to complete its review of menthol cigarettes, which is not expected until March 2011.

The U.S. imported $15.2 million of clove cigarettes, nearly all from Indonesia, in 2008, accounting for less than 0.1 percent of cigarette consumption at the time. Indonesia claims that menthol cigarettes now make up 28 percent of U.S. cigarette consumption.

Advertisement
Advertisement
Advertisement