Little Risk to New Zealand Tobacco Regulations from TPP

6 July 2011

Suggestions that New Zealand’s health policy could be undermined by free trade agreements such as the Trans Pacific Partnership are overblown, says the NZ US Council.

“New Zealand’s trade and investment agreements uphold the right to take actions to protect public health provided they are not discriminatory and can be justified by science” said NZ US Council Executive Director Stephen Jacobi.

In recent weeks it has been claimed that New Zealand’s involvement in negotiations to expand the Trans Pacific Partnership (TPP) could mean that the tobacco industry could stop the Government introducing plain packaging for tobacco products as has been initiated in Australia.

“A provision safeguarding the protection of public health is contained in Article 19.1.2 of the existing TPP signed in 2005 by Brunei, Chile, New Zealand and Singapore[1]. There is no reason to think that such a provision will not be included and apply to an investment chapter in the expanded TPP once negotiations are completed”.

Reference has also been made to an existing bilateral investment treaty between New Zealand and Hong Kong which, it is claimed, could be used by the tobacco industry to prevent plain packaging being introduced in New Zealand.

“There again the risk is minimal. The agreement signed in 1995 by Hong Kong and New Zealand contains the usual public health exception in Article 8.1.3[2]”

Mr Jacobi said while a legal challenge could not be completely ruled out, there is no guarantee that such a challenge would be successful.

“Legal posturing aside, any government decisions about public health policy in New Zealand are more likely to be driven by domestic policy considerations rather than international trade agreements” said Mr Jacobi.

ENDS