Australian Coat of Arms

Member for Blaxland

Shadow Minister for Regional Services, Territories and Local Government

Shadow Minister for Housing and Homelessness 

More than $11.5M of taxpayers’ money up in smoke even after winning ISDS case against tobacco giant


Australian taxpayers have been left more than $11.5 million out of pocket following tobacco giant Phillip Morris’ unsuccessful legal action against Australia’s plain packaging laws.

The tobacco giant sued Australia using an Investor State Dispute Settlement (ISDS) provision.

Phillip Morris made the ISDS claim after the Australian High Court had already ruled against it on this matter.

Despite winning the ISDS case the Australian government was only awarded half of legal costs as revealed in an FOI request released in the last 36 hours.

Labor does not support the inclusion of ISDS clauses in trade agreements.

The EU will also not sign free trade agreements with ISDS. Instead it is setting up a Multilateral Investment Court.

The New Zealand Government has also said it will not sign future trade agreements with ISDS clauses.

It also signed side letters with five countries including Australia to remove the application of the ISDS clauses in the CPTPP.

ISDS was largely removed from the updated version of the North American Free Trade Agreement.

The Productivity Commission also does not support the inclusion of ISDS clauses in trade agreements.