G/TBT/W/359  
12 March 2013  
(13-1338)  Page: 1/3  
Committee on Technical Barriers to Trade  Original: Spanish  
 
  PROPOSAL TO INTRODUCE PLAIN PACKAGING OF TOBACCO PRODUCTS 
IN NEW ZEALAND: CONSULTATION DOCUMENT  
(G/TBT/N/NZL/62) 
STATEMENT BY THE DOMINICAN REPUBLIC TO THE COMMITTEE 
ON TECHNICAL BARRIERS TO TRADE 6-7 MARCH 2013 
The following communication, dated 11 March 2013 is being circulated at the request of 
the delegation of the Dominican Republic. 
 
_______________ 
 
 
1  INTRODUCTION 
1.1.  On 24 July 2012, New Zealand notified its "Proposal to introduce plain packaging of tobacco 
products in New Zealand: Consultation Document" to the Committee on Technical Barriers 
to Trade.1 While the Dominican Republic shares New Zealand's interest for protecting human 
health, as demonstrated by our application of high import charges on such products and of 
restrictions on the public areas in which they can be used, we are deeply concerned by the 
proposed measure on plain packaging. The Dominican Republic believes that the measure under discussion will not produce the desired result and that it is contrary to New Zealand's obligations under the TBT Agreement and the TRIPS Agreement. We  also believe that the legitimate objectives 
that it pursues can be achieved by adopting measures that impose fewer restrictions on 
international trade. 
1.2.  The Dominican Republic expressed its concern over the measure proposed by New Zealand 
during the TBT Committee meeting held on 27-28 November 2012.
2 WTO Members also expressed 
their concern over the measure.3 Moreover, the Dominican Republic detailed its concerns in 
previous meetings of the TBT Committee, regardin g similar measures notified and implemented by 
the Australian Government.4 The Dispute Settlement Body is currently examining Australia's 
measures on plain packaging.5 
1.3.  Regrettably, New Zealand has not only failed to take any steps towards addressing the 
concerns expressed by WTO Members, but it seems that its Government intends to introduce the 
proposed plain packaging regime.6 While we find this decision regrettable, we welcome 
New Zealand's apparent intention to delay introducing this legislation until the WTO Dispute Settlement Body has ruled on the plain packaging measures implemented 
by Australia.
7 
                                               
1 G/TBT/N/NZL/62. 
2 G/TBT/W/355. 
3 Questions put to New Zealand by the Republic of  Cuba during the meeting of the Committee on 
Technical Barriers to Trade on 27 and 28 November 2012 (G/TBT/W/356). 
4 G/TBT/W/339; G/TBT/W/346. 
5 WT/DS434; WT/DS/435; WT/DS441. 
6 "Government moves forward with plain packaging of tobacco products", 19 February 2013, 
http://www.beehive.govt.nz/release/government-mo ves-forward-plain-packag ing-tobacco-products. 
7 "Government moves forward with plain packaging of tobacco products ", 19 February 2013, 
http://www.beehive.govt.nz/release/government-mo ves-forward-plain-packag ing-tobacco-products. G/TBT/W/359 
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  1.4.  As it presently stands, New Zealand's draft measure has serious consequences, as it will 
prejudice the competitive opportunities of imported tobacco products and will have wide-ranging and damaging effects on international trade. Moreover, it will not achieve its public health objectives. In order to avoid taking up too much time, we will not repeat the issues that have 
already been raised, but will instead try to summarize the Dominican Republic's main concerns 
regarding this measure. 
2  DESCRIPTION OF THE IMPACT OF THE PROPOSED MEASURE ON PLAIN PACKAGING 
2.1.  While New Zealand is still to provide the full details of the proposed measure, we understand 
that it intends to restrict the use of registered trademarks, logos and other distinguishing features on tobacco packaging apart from the brand name, which would have to satisfy specific requirements regarding its lettering and placement.
8 The proposed measure would also require 
producers and importers of tobacco products to adopt packaging that is highly standardized, 
including in terms of size and formatting. In addition, it intends to ban any information from appearing on the product.
9 The proposed measure on plain packaging will, as a result, eliminate 
many characteristics that help to differentiate between competing tobacco products. 
2.2.  The Dominican Republic is unclear as to how the proposed measure will help to legitimize the 
health objectives pursued by New Zealand. In part icular, we question the quality and reliability of 
the evidentiary basis that the country is using to support its proposal. 
2.3.  The Dominican Republic is also concerned that plain packaging might have unwanted effects 
that undermine the proposed health objectives. For example, tobacco products sold in standardized packaging will make product differentiation difficult, which will in turn intensify price 
competition and cause prices to fall. The drop in prices could actually increase  the demand and 
consumption of tobacco products. The plain packaging requirement could also stimulate the production and sale of fake and counterfeit tobacco products. An increase in sales and 
consumption of legal and illegal tobacco products would represent a serious threat to public health. 
2.4.  We wish to emphasize once again our particular concern over the effect that the proposed 
measure could have on small and vulnerable economies that have invested in the production and 
export of tobacco and high-quality tobacco produc ts. In the Dominican Republic, 55,000 people are 
employed directly in tobacco production and an other 63,000 work in the tobacco industry, which 
means a total of 118,000 direct jobs and more than 500,000 indirect jobs across the country. In 2012, tobacco exports amounted to US$520 million and currently represent nearly 10% of total 
exports from the Dominican Republic. Moreover, according to TradeMap (UNCTAD-WTO) data 
the Dominican Republic was the largest exporter of cigars (in terms of volume) in 2011, accounting for 49% of the global total. Cumulative investment in this area totals US$2.8 billion, 
and has been used to develop an export-oriented industry based on high-quality products. 
2.5.  These figures give an idea of the terrible social consequences that this trade-restrictive 
measure might have for poor countries such as the Dominican Republic. It bears repeating that 
the Dominican Republic supports tobacco control initiatives; however, it is opposed to speculative 
measures, devoid of any credible and reliable evidentiary basis, that will ruin the competitive opportunities of high-quality products and that could be substituted for less restrictive alternative measures. 
3  INCONSISTENCY WITH ARTICLE 2.2 OF THE TBT AGREEMENT 
3.1.  The Dominican Republic considers that New Zealand's proposed measure on plain packaging 
fails to comply with Article 2.2 of the TBT Agreement, which stipulates that "technical regulations 
shall not be more trade-restrictive than necessary to fulfil a legitimate objective, taking account of 
the risks non-fulfilment would create". 
3.2.  As intended, the proposed measure will have a disproportionate effect on trademark tobacco 
products and will impose significant restrictions on trade in such products. It will cause a drop in 
the price and market share of imported tobacc o products, particularly of those which are 
                                               
8 G/TBT/N/NZL/62 and notified document mentioned therein. 
9 G/TBT/N/NZL/62 and notified document mentioned therein. G/TBT/W/359 
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  high quality, and of the tobacco used in the aforementioned trademark products. As a result, the 
value of these imports will fall. The proposed measure will reduce the competitive opportunities of the trademark products that are currently on the New Zealand market and will increase barriers to 
market entry for branded products. 
3.3.  As it has previously indicated, the Dominican Republic has serious doubts over whether such 
restrictions are warranted. According to the evidence available to the Dominican Republic, the proposed measure will not only fail to achieve its objective of reducing tobacco consumption, 
but it runs counter to these objectives and will increase the consumption of both legal and illegal 
products. On the other hand, New Zealand's goal s could be achieved through the adoption of 
measures that have already proved effective in promoting public health objectives and are less 
restrictive to international trade. 
3.4.  We urge New Zealand to take into account these concerns and to ensure that it meets its 
obligations under the WTO Agreement. 
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