Indonesia to Seek Compensation from US in Tobacco Spat

Source from:  Straits Times 07/29/2013

Indonesia will seek compensation from the United States for pulling its clove cigarettes from shelves despite a World Trade Organisation (WTO) ruling that deemed the ban discriminatory.

Indonesia's trade ministry said it had lost between US$200 million and US$300 million (S$253 million to S$379 million) annually from the 2009 ban, aimed at helping prevent youths from taking up smoking.

The WTO found that the US had flouted trade rules in its health act - under which cinnamon, coffee, grape and strawberry-flavoured cigarettes were also banned - because it allowed menthol-laced tobacco to stay on the market.

The WTO found in favour of Indonesia's claims that allowing domestically-made menthol cigarettes and not its clove-laced cigarettes was discriminatory. Enditem