http://www.forbes.com/sites/greatspeculations/2014/09/22/an-uruguayan-lawsuit-with-international-implications-for-philip-morris/
Tobacco major Philip Morris International is suing Uruguay for $25 million, for increasing the size of the graphic health hazard warnings on its cigarette packets. Currently, tobacco companies in Uruguay are required to cover 80% of the area of both faces with graphic warnings and 100% of one side panel with text warnings. There has been a rapid evolution of these laws. As late as May 2005, the warnings were restricted to only 100% of one side panel in the form of text messages. Philip Morris has based its lawsuit on the violation of a 1991 treaty between Uruguay and Switzerland. Although Philip Morris is headquartered in the U.S., it has an operations center in Switzerland.
This is not the first time Philip Morris is suing Governments of foreign countries over health warnings on packets. We have reported on Philip Morris’ brush with the Australian Government that ended badly for it (See Philip Morris Earnings Face Headwinds). The Australian High Court upheld the Government’s plain packaging restrictions that prevent tobacco companies from using attractive pictures and colors on cigarette packets. Philip Morris had introduced a lawsuit challenging this regulation under a Hong Kong- Australia treaty after rearranging its assets to classify as a Hong Kong investor.
This sort of thing will, IMO, be happening more and more and more - just think - Monsanto will be able to sue anyone who refuses its seeds, corporations can sue if they feel labeling might affect their profits - here in the US, Monsanto and others spend many millions of dollars fighting labels - corporations can sue over any law or regulation that they feel affects their profits. Really great stuff, eh? No wonder Warren said that if we knew what was in the TPP, we would be outraged.
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