Philip Morris International Comments on New Zealand’s Standardized Packaging Announcement

  Philip Morris International Comments on New Zealand’s Standardized Packaging

Business Wire

LAUSANNE, Switzerland -- February 19, 2013

Philip Morris International Inc.’s (PMI) (NYSE/Euronext Paris: PM) issued the
following statement today regarding the New Zealand government’s announcement
that it will wait to implement standardized or “plain” packaging for tobacco
products until the international legal challenges pending regarding
Australia’s law are decided:

"In her official statement earlier today announcing New Zealand’s plans
regarding standardized packaging, Health Minister Tariana Turia said, ‘the
Government will wait and see what happens with Australia’s legal cases, making
it a possibility that if necessary, enactment of New Zealand legislation
and/or regulations could be delayed pending those outcomes.’

This announcement demonstrates that the New Zealand government recognizes the
significant international trade issues with standardized packaging and will
not implement it until the pending international legal challenges to
Australia’s law are resolved. There is no credible evidence that standardized
packaging will lower smoking rates, but strong evidence that it will
jeopardize jobs, benefit the black market for cigarettes, and is a breach of
international trade rules that have already made Australia’s policy subject to
WTO action.”


There are three avenues of litigation that have been pursued against the
Australian government in relation to this legislation, one at the domestic
level and two at the international level. While the domestic case has been
decided, the international cases remain open and unresolved.

Currently three countries have initiated proceedings against Australia before
the World Trade Organization (WTO) on the ground that the standardized
packaging legislation is contrary to Australia’s obligations as a WTO member.
Philip Morris Asia (PMA) is also suing Australia for multiple breaches of its
Bilateral Investment Treaty (BIT) with Hong Kong. Decisions in these cases are
expected within two to three years. In broad terms, these cases will examine a
number of issues, including:

  *Whether there is any valid evidence that standardized packaging will
    reduce smoking rates
  *Whether there are effective, less restrictive alternatives that Australia
    could have implemented instead
  *Whether standardized packaging breaches Australia’s international trade
    and treaty obligations
  *Whether the Australian government will need to pay compensation to PMA.

For more information regarding PMI and our views on standardized packaging

Philip Morris International Inc. Profile

Philip Morris International Inc. (PMI) is the leading international tobacco
company, with seven of the world’s top 15 international brands, including
Marlboro, the number one cigarette brand worldwide. PMI’s products are sold in
more than 180 countries. In 2012, the company held an estimated 16.3% share of
the total international cigarette market outside of the U.S., or 28.8%
excluding the People’s Republic of China and the U.S. For more information,


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