WTO establishes panel to resolve dispute - Indonesia and USA have regarding clove cigarettes..

July 21, 2010 - As expected United States [government] rejected on Tuesday, June 22nd a call by Indonesia for a World Trade Organization (WTO) panel to rule on their dispute over the U.S. ban on clove-flavoured cigarettes. Under WTO rules, the defendant in a dispute is allowed to block the creation of a panel at the first request, but cannot obstruct it a second time. Indonesia's request is likely to go through at the next meeting on July 20, 2010. (WTO - US rejected call by Indoensia to rule on dispute on ban of clove cigarettes in the US..)

The WTO will rule on a dispute brought by Indonesia against the United States over a ban on sales of Indonesian clove cigarettes, trade sources said on Tuesday.

A panel was established on Tuesday, July 20th sources said after a meeting of the WTO's Dispute Settlement Body.

Washington (US government) has banned the production and sales of clove cigarettes under a health act that also blocks the sales of other flavoured cigarettes such as grape, coffee or strawberry, in a bid to prevent the young from getting hooked on smoking.

But Indonesia argued that the act had not been applied uniformly as it did not cover menthol cigarettes. Underlining the importance of the clove cigarettes industry to the country, Indonesia claimed that the livelihoods of over six million Indonesians depend directly or indirectly on their production.

Reference: WTO to rule on clove cigarette row, The Sydney Morning Heral - Agence France-Presse (AFP), 7/21/2010.

Directly related news briefs:
FDA regulations ban on clove cigarettes Indonesia may protest to WTO.., June 19, 2009;
Indonesia - trade minister officials want to meet with US counterparts to discuss ban on clove cigarettes.., November 4, 2009;
Indonesia - launches formal dispute with WTO over U.S, ban on clove cigarettes.., April 13, 2010.
Also,
U.S. - Importer tries to get around clove cigarettes ban.., September 24, /2009;
Clove cigars close but not cigarettes.., October 27, 2009;
Kretek International filed suit to prevent FDA from banning flavored cigars..., 11/24/2009;
Kretek International drops FDA lawsuit on clove cigars.., January 7, 2010.
Indonesia - on June 22nd will ask WTO to rule on US ban on clove cigarettes.., June 14, 2010;
WTO - US rejected call by Indonesia to rule on dispute on ban of clove cigarettes in the US.., June 23, 2010.

Had to add this great image.. Did banning clove cigarettes violate trade laws?, Posted By Joshua Keating, ForeignPlicy.com, 7/21/2010.

Click to enlarge..