ISDS Case Map
Uruguay
The tobacco giant has to pay $7m to the small South American nation in a dispute over cigarette adverts. But the case could still set a worrying precedent.
All in all, a pretty good decision—although its limitations should be acknowledged.
A private ISDS tribunal has just ruled in favor of Uruguay over its tobacco labeling legislation. But why do we even allow this game to take place in the first place, regardless of the chance of a fatal outcome.
The World Bank's ICSID ruled in favor of Uruguay in a suit filed by Philip Morris International seeking compensation for economic damages caused by the nation's anti-tobacco measures.
“Despite the losses and defeats, tobacco companies will keep coming back for more. They will fight on regardless in order to delay and disrupt the rollout of the World Health Organization’s best-practice tobacco control measures,”
Uruguay will face a second suit before the World Bank's ICSID, in a case initiated by a Miami-based telecommunications company that operates locally.
The French President, François Hollande, showed that he was politically in sync with the presidents of Uruguay, Tabaré Vázquez, and Argentina, Mauricio Macri, and opened dialogue on the Free Trade Agreement (FTA) that Mercosur and the European Union are negotiating.
Uruguay expects to promote the signing of a free trade agreement between Mercosur and China when Uruguay holds its pro-tempore presidency.
Philip Morris is dragging countries with tight tobacco regulations into costly legal battles.
Former Uruguayan senator Alberto Couriel said that there is "no free trade" in the Trade in Services Agreement (TISA), promoted by the United States.
