International center the world Bank for settlement of investment disputes (ICSID) on Friday, July 8, ruled in favor of Uruguay at the suit of Philip Morris International, which demanded compensation for economic damage caused by the action of the authorities on struggle against tobacco, according to Reuters.
Uruguay in 2006, introduced a ban on Smoking in public places, in addition, the authorities raised taxes on tobacco products and forced companies to place on cigarette packs larger warning labels and images. He also banned the use of the words “light” and “mild” on cigarette packs to try to dispel the erroneous beliefs of smokers that this product is more secure.
“Health measures that we have implemented to control tobacco use and protect the health of our citizens, was clearly recognized as legitimate, and adopted in the framework of the sovereign power of our Republic,” said President Tabare Vazquez in a televised address.
In the decision of the ICSID, which leads Reuters stated that the centre decided to reject the claim of Philip Morris, who pointed to the abolition of the rules or not to apply them to the company, and otherwise demanded damages of $22 million.
The ICSID ordered the tobacco company to pay Uruguay $ 7 million and to cover all the fees and costs of arbitration and administrative expenses and expenses of ICSID”.
Phillip Morris in turn, said that he respects the decision of the arbitration. “We never questioned the authority of Uruguay at the health of the population, and this case is not about the global issues of tobacco policy,” said Marc Firestone, senior Vice President and General counsel of Philip Morris. The representative of the tobacco company said that Philip Morris wanted to meet with the government of Uruguay, to study the normative-legal base which would allow smokers in the country to have access to information about alternatives to Smoking with less risk.”