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    12-Oct-2010

    Contact: James Bourne 212 262-7470 jimbournenyc@aol.com
    Meghan Gross 617-832-7112 mgross@foleyhoag.com

    Government of Uruguay Taps Foley Hoag for Representation in International Arbitration Brought by Philip Morris to Overturn Country’s Tobacco Regulations

    Uruguay’s ordinances part of 170-nation effort to combat smoking by the World Health Organization; Philip Morris alleges that regulations violate Switzerland-Uruguay bilateral investment treaty


    WASHINGTON, DC (October 8, 2010) – In a first-of-its-kind case focusing on areas of conflict between a nation’s tobacco control regulations and the treaty rights of a multinational corporation, the government of Uruguay has retained Foley Hoag LLP to represent it in an arbitration case brought by Philip Morris, at the International Centre for Settlement of Investment Disputes (ICSID).

    The Foley Hoag team is led by international law specialists and Washington-based partners Paul Reichler and Ronald Goodman. Mr. Reichler most recently represented Uruguay in its successful defense of a suit brought by neighboring Argentina at the International Court of Justice in The Hague. The case, in which Argentina attempted to force closure of a Uruguayan paper mill, was only the second environmental case heard by the ICJ in its history. Mr. Goodman most recently obtained a judgment for Venezuela in an ICSID case brought by Nova Scotia Power Inc.; the tribunal ordered the company to pay Venezuela more than $1 million in legal costs.

    The current ICSID arbitration was initiated by FTR Holdings SA, a Swiss conglomerate that owns fellow plaintiffs Philip Morris as well as Abal Hermanos SA, the second-largest Uruguayan tobacco company. The cigarette manufacturers contend that Uruguay’s restrictions on sales and marketing of tobacco products, violate the bilateral investment treaty between Switzerland and Uruguay by harming the companies’ business operations and trademarked brands.

    Uruguay enacted the measures as part of a broad effort to safeguard and enhance public health. In 2005 it became one of 170 countries to sign the World Health Organization’s Framework Convention on Tobacco Control, a global initiative to reduce or eliminate tobacco use. Soon after, the Uruguayan government introduced restrictions on cigarette marketing and packaging, including:

    • Limiting each brand of cigarette to a “single representation,” that is, forbidding multiple iterations of a brand such as “light,” “menthol,” etc.;
    • Requiring pictograms on tobacco packages to graphically illustrate the possible adverse health effects of sustained tobacco use;
    • Mandating that 80 percent of the surface area of cigarette packages be covered with health warnings to consumers.

    Cigarettes sold in Uruguay include such well known Philip Morris brands as Marlboro and L&M, as well as locally made Casino and Premier brands. As a result of the regulations Philip Morris has ceased marketing Marlboro varieties called “Gold,” “Green (Fresh Mint),” and “Blue.” The claim alleges that the government’s actions violate both the 1988 Switzerland-Uruguay bilateral investment treaty and international law, by imposing unreasonable restrictions and subjecting FTR and its subsidiaries to unfair treatment.
    Mr. Reichler believes the plaintiffs have targeted Uruguay as a test case. “Our view is that Philip Morris is hoping to use this case to deter not only Uruguay but other signatories to the WHO’s Framework Convention from taking effective measures to safeguard the public health against the known hazards of tobacco consumption,” he said.

    “Sovereign states are normally given wide discretion in enacting legislation or promulgating regulations to protect and promote public health,” Mr. Reichler noted. “Indeed, that is one of the fundamental aspects of sovereignty. This is not a case of economic regulation, but of government action strictly in the name of public health.”

    Mr. Goodman said, “Uruguay’s regulations are aimed at tobacco products which, it is scientifically proven, kill people or cause grave illnesses to those who smoke and to those around them. Because of the widespread illness, disease and mortality created by smoking, tobacco products impose tremendous burdens on a country’s public health system. In many countries the state pays for or subsidizes the care and treatment of sick people. The financial burdens on states caused by smoking are enormous.”

    “Philip Morris and its associated companies are challenging the right and discretion of Uruguay to make its own determination on how to protect public health – which in our view is a sovereign right that no private company can overrule,” Mr. Goodman added.

    The Campaign for Tobacco-Free Kids, a U.S.-based research and advocacy organization funded by the Bloomberg Foundation, has agreed to help finance Uruguay’s defense.

    The arbitral tribunal will be comprised of one arbitrator selected by each side and a third whom the parties agree on.

    Philip Morris is represented by the Swiss firm Lalive.

    ###

    Foley Hoag represents many nations before the International Court of Justice and other international courts and arbitral tribunals around the world. Most recently the firm successfully represented Nicaragua at the ICJ in a case that reaffirmed Nicaragua’s sovereignty over the river boundary between it and Costa Rica, and Nicaragua’s exclusive right to regulate navigation on the river. Foley Hoag also represents foreign governments in litigation before the federal and state courts of the United States. The firm’s 250 lawyers are located in Washington, DC, and Boston. For more information visit www.foleyhoag.com.

    elias diaz diaz:
    10-Oct-2010

    b ueno mas que nada reciban un gran saludo de parte mia compañeros y compañeras yo me llamo elias diaz diaz soy el hijo de don agustin diaz gomez somos originarios del municipio de chalchihuitan chiapas que es un municipio indigena yo soy indigena de la etnia tzotzil el esta preso injustamente en el penal de san cristobal de las casas chiapás el siempre ha sido un gran miembro activo en cuanto a los movimientos hoy les pido compañerops que me ayuden para sacar a mi papa de la carcel el fue miembro de de la CONAI QUE ES LA comison de intermediacion que fue hecha por la cocopa que es la comision de concordia y pacificacion es pero compañeros que em den una respuestas pronta mi correo es ioriyagamyelias@hotmail.com y mi numero de celular es 9611897853

    tutoloko:
    7-Oct-2010

    Enumero a continuacion algunos de los beneficios primordiales que se obtendran con la aprobacion del TLC entre Costa Rica y China:
    • Se obtiene un acceso preferencial al mercado de mayor crecimiento del mundo, con más de 1,300 millones de personas.
    • En las negociaciones, Costa Rica ha buscado que sus principales productos de exportación, así como los que poseen potencial exportador, se beneficien con un acceso preferente al mercado chino. En este sentido, se ha logrado que una amplia gama de productos ticos (agrícolas, pesqueros, industriales) ingresen en condiciones preferenciales a dicho mercado.
    • El acuerdo permitirá estrechar las relaciones comerciales con el principal proveedor mundial de insumos para la industria, lo cual posibilita el incremento de la eficiencia en la industria doméstica, permitiendo así que se integre en cadenas productivas con el Asia con la finalidad de vender en mercados de la región.
    • Costa Rica ha logrado negociar capítulos bastante profundos en el resto de disciplinas e incluir en el proceso la negociación de capítulos de servicios e inversiones bastante amplios.
    • Se mantienen los mecanismos de defensa comercial existentes (salvaguardia global, anti-dumping y medidas compensatorias), y se genera un mecanismo de salvaguardia bilateral entre las Partes.
    • El Acuerdo de Cooperación Aduanera permitirá que las Aduanas se soliciten información sobre características tales como el valor u origen de una mercancía, la cual podrá ser utilizada en procesos administrativos y judiciales. Esto facilitará las labores de investigación de casos donde se presuman delitos aduaneros, con lo cual se busca que los productos procedentes de China ingresen al país en condiciones que permitan un comercio justo.
    Espero que este comentario ilustrativo sirva para entender las ventajas que se proyectaran
    un tico agradecido jatj.

    Edmund Paul Kalekyezi:
    7-Oct-2010

    ...if the rest of the EAC member states do not wake up and diversify their exports this trend will continue. No one should expect Kenya, or any other country to start importing goods from regional neighbours, when these neighbours are not producing them in the first place. I am sure that the goods which Kenya imports from outside the region are those goods that the regional neighbours do not produce!!...why should Kenya stop importing them from outside the region if they are not produced within the region???

    Instead of blaming Kenya, her neighbours should build capacity and produce these goods locally so that they satisfy the regional market, including the Kenyan market. If these goods were available on the regional market, they would be protected by the Common External Tariff implemented by EAC....because this tariff would make goods from outside the region more expensive than goods produced within the region.

    ...not that producing these goods would necessarily make them cheaper than those imported from outside the region, however. Their prices will depend on the cost of inputs and the existing Rules of Origin that would determine if the goods are exempt from the CET. Thus, the regional countries should determine what goods they can produce for the regional market and come up with policies to promote the production of such goods, instead of thinking that Kenya will this for them or stop importing from other countries merely because there is a Customs Union!!

    olenga:
    30-Sep-2010

    La concentración de recursos por parte de las multinacionales existe en Colombia desde muchos años atrás, tal es el caso de las multinacionales automotrices GM, Renault y Mazda.
    Estas multinacionales producen vehículos en Colombia, que es un mercado sobre-protegido por el estado, que facilita a las ensambladoras comercializar sus productos a precios mas altos que en otros país.
    Es completamente inaceptable que el colombiano, con un poder de compra muy limitado, tenga que pagar los precios más altos por un vehiculo que lo que paga un consumidor en Estados Unidos, México, Chile, Argentina, Venezuela, Ecuador, España, India, Rusia, etc.,
    El bajo acceso del consumidor Colombiano a los vehículos nuevos, previene la reposición del parque automotor, dejando a la población tener que sufrir por las consecuencias de la contaminación, accidentalidad y movilidad.
    El actual esquema de desarrollo favorista, lo único que garantiza son altos márgenes de comercialización al ensamblador, recibiendo el estado muy poco en materia de impuestos y divisas, una baja tasa de empleo industrial y un desarrollo industrial muy limitado.
    De manera que negarse a los TLC, es prevenir que la población tenga una mejor calidad de vida, es prevenir que el consumidor Colombiano pueda acceder a bienes más competitivos y seria profundizar más la pobreza en Colombia.

    colo:
    19-Sep-2010

    Well, the Commission policy on trade agreements is not to offer the texts of international agreements before the legal revision, that’s why you can’t find it anywhere.
    I’ve spoken with an EU functionary and he said to me that this text on this website is the signed text by the EU, Peru and Colombia.

    Michal_pl:
    8-Sep-2010

    I’ve been looking too, but also i can’t find it in any official source.


    6-Sep-2010

    Agree with you, but for my college term papers it`s exactly what I need.

    Suprotect:
    6-Sep-2010

    Peru DEBE de poner un stop al acceso de los barcos pesqueros japoneses , ya que no solo estan extrayendo anchovetas si no tambien otro tipo de cetaceos ( ballenas y Delfines) y /O tener todo el tiempo con el barco pesquero Japones un barco de una organizacion mundial como WIC y OPS que proteje estos animales marinos.
    Como sabran que el numero de ballenas a nivel mundial esta bien bajo del 100% ( 311,000 ballenas azules) solo hay 5% ( 2,280. ballenas azules ) CHILE por eso ha declarado su mar un santuario de Ballenas aunque anteriormente le alquilaba a Japon Ahora ya no es asi ahora proteje su mar y sus ballenas .. Esperamos que el PERU le siga los pasos....

    Marvin Madyara:
    5-Sep-2010

    Seems the COMESA agenda was a mouthful, the report shows some level of improved tradepaths. However, the day COMESA represantative countries make that long awaited decision, evident bilateral fruits will be enjoyed by every African middle class trader, especially in the fastest growing economy of my beautiful country. I am simply talking or lobbying for the COMESA countries to fully open up their trade gates by removing visas amongst themselves. It is natural that there would be some kukulanders who might abuse this initiative, but it shouldn’t stop the move. Let COMESA benefit the ordinary person, the widow who crosses border to border for trade reasons, a youth who buys goods in DRC and sells them in Zimbabwe... Empower the people and you will grow a phycological economy towards the real deal!

    Juliana Távara:
    29-Aug-2010

    El gobierno debería acelerar los precesos y negociaciones de tratados de libre comercio bilaterales. Deberian crear mas grupos de negociación. asi nos benefeciarimos muchos los peruanos en cuanto a exportaciones e importaciones y turismo entre ambos paises. No se como se podria contactar con el ministerio de comercio exterior para proponer este tema.

    Casi todos los paises de latinomarica tienen conveniors con Turquía. y pueden ingresar como turistas entre ambos países. Todos , menos Perú, es el colmo de que siempre seamos los ultimos.


    26-Aug-2010

    el último embajador de Costa Rica en Taiwan no fue Oscar Alvarez sino Mario Acón Chea, y Costa Rica no es un país centroafricana...

    Tim Dost:
    17-Aug-2010

    I was wondering what the scource is of these texts. Can anyone tell me whether there is an official channel providing these texts? I’ve searched quite extensively, but have not found the texts anywhere else than here on bilaterals.org

    Thanks in advance,

    Tim

    fernando sesma:
    29-Jul-2010

    La lucha contra las empresas transnacionales, debe ser una constante dentro de la dímanica laboral, y sobre todo hoy con la entrega de la política loboral a manos de los grandes consorcios. Si los trabajadores de cualquier país desean conservar sus derechos frente a los intereses desmedidos de los barones del dinero y sus eternos aliados la clase gobernante.


    13-Jul-2010

    Como frenar la globalizacion con reforzadas teorias de que el campesino ouede vivir de una vaca o una cuadra de tierra?
    Pobre analisis simplista

    fernando sesma:
    8-Jul-2010

    Nuevamente el país y todos nosotros vamos a vernos beneficiados, por las bondades del comercio exterior, según los discursos oficiales, que por cierto ya ni le dan publicidas a este tipo de arreglos, en que ayudará al país ser uno de los mayores impulsores de este tipo de convenios. Los favoreciods las grandes empresas y nada más.

    Indra Nath Mukherji:
    8-Jul-2010

    True, the majority of India’s exports to Sri Lanka have been beyond FTA coverage under Sri Lanka’s Negative List. This is because the bulk of India’s exports to Sri Lanka are underlined by their competitiveness. The reverse is however not true as the bulk of Sri Lanka’s exports to India as through the concessional route under FTA.
    It is also true that there have been reverses in Sri Lanka’s exports to India in the past year. But this is due to leveling of import tariff differentials between the two countries, particularly with respect to vegetable (palm) oil and copper. India’s reduction in external tariffs on these and other products are driven by the need to protect its consumers. This is further in keeping with India’s external sector reform programme which seeks to bring down its customs duties to be at par with ASEAN levels. The problem arises as some products that should have remained in India’s Negative List have been offered duty-free access while others that should have been outside India’s Negative List, have remained so.
    Having got recognition of certification by Export Council of India (ECI) on 85 exportable products by Sri Lanka Standards Institution (SLSI), it is high time for reciprocal recognition of certification of SLSI by EIC. This will go a long way in enabling more Sri Lankan exporters to access the Indian market.

    Sugiarto Setiabudi:
    6-Jul-2010

    After Pascal Lamy joined to Thomson Reuters Founder Share Company,public consider all Pascal lamy said full of conflic of interest ,due to Thomson Reuters Founder Share Company has zero credibility,integrity and dignity as well..
    Thomson Reuters Founder Share Company is created for the unethical and inapproptiate business conduct.
    He will face difficulty in executing his duty as the director general of WTO ,due to his membership at Thomson Reuters founder Share Company.
    WTo need person who has integrity and credibility.
    Slow but sure ,the reputation of Pascal Lamy will tarnish and
    public losing confidence of the WTO objectives.

    Uk Dong GIM:
    29-Jun-2010

    Thank you for your Good news.
    I think this article deals with two issues about Korea-EU FTA.
    First of all, the problem of translation is quite complex and time spending. Also Korean govermanet should confirm legal validity about its translation.
    Secondly, it takes more time than its initial expectation to get permission of EU Council and Korean Nation Assembly.

    Author seems to be negative that provision have been used almost same meaning with ’formal entry into force’.

    flaka:
    28-Jun-2010

    La pobreza no es una condición del hombre, es una construcción humana debido a la inequidad e injusticia social originada por el desempleo, la falta de apoyo al sector industrial y productivo de nuestro país. Y Canadá ha ido contribuyendo a la pobreza de muchos colombianos y colombianas, principalmente con la presencia de sus compañías mineras en Colombia. Al gobierno canadiense no le interesa ni siquiera sus pobres ni sus pueblos indígenas, mucho menos le va a importar los pobres de otras partes del mundo o contribuir a fortalecer la economía de otro país.
    A partir del TLC México-Canadá, se ha abierto la puerta a trabajadores mexicanos que son contratados para trabajar en las granjas agrícolas canadienses durante 6 meses del año y tristemente, son los trabajadores peor pagados y quienes cuentan con las condiciones más paupérrimas de cualquier otro trabajador inmigrante. Le aseguro Esther, con TLC o sin él, usted tiene las mismas posibilidades para venir a Canadá. De todas maneras, lamento informarle que conozco profesionales de la medicina, odontología, ingeniería, que llegan a Canadá a lavar platos, ser meseros, cargar ladrillos y cemento, entre otros trabajos lejanos a sus profesiones).
    El TLC sólo le va a traer a Colombia la posibilidad de que cualquier colombiano (que tenga con qué) compre los productos canadienses que, en últimas, podrían ser productos elaborados en Colombia por trabajadores colombianos, pero que por traición al país, el gobierno ha decidido comprarle a Canadá, generando mucho más desempleo y hambre en nuestro país. Me atrevo a asegurarle además que con hambre no es posible estudiar, ni leer, ni pensar, por eso se convierte en una de las mejores estrategias para mantener más pobre a los pobres y, en ese mismo sentido, más ricos a los ricos o ¿por qué cree que cada vez hay más pobres en Colombia y en el mundo?
    La invito a buscar mayor información sobre lo que ciudadanos canadienses han escrito (en inglés y español) sobre el TLC y reconocen las desventajas que sufrirá Colombia con él.
    No soy ninguna experta en economía pero me gusta mucho comprender algunos elementos que me permitan tener una mirada crítica de lo que sucede aquí y allá y no estar repitiendo lo que dicen los medios de comunicación colombianos, a los cuales tampoco les interesa contribuir a la solución de la pobreza en Colombia.
    De todas maneras, espero que siga soñando con venir a Canadá, mientras que muchas otras personas como yo seguiremos soñando con eliminar (o disminuir) la pobreza en Colombia. Cordialmente.