Hostname: page-component-cd9895bd7-7cvxr Total loading time: 0 Render date: 2024-12-27T08:09:31.041Z Has data issue: false hasContentIssue false

Not so sweet refrain: sugar-sweetened beverage taxes, industry opposition and harnessing the lessons learned from tobacco control legal challenges

Published online by Cambridge University Press:  21 May 2018

Anita George*
Affiliation:
Senior Legal Policy Advisor, McCabe Centre for Law and Cancer, Melbourne, 3004, Australia
*
*Correspondence to: Anita George, Senior Legal Policy Advisor, McCabe Centre for Law and Cancer, Melbourne, 3004, Australia. Email: [email protected]

Abstract

As a growing number of countries implement, or announce plans to introduce, a sugar-sweetened beverage (SSB) tax, this paper explores the public health rationale for such a tax and provides an overview of the international normative and policy instruments supporting the introduction of fiscal measures on sugary drinks. After examining parallels between the legal arguments raised by the food and beverage industry in opposition to SSB taxes and those raised by the tobacco industry in response to tobacco control measures, this paper draws four key lessons that will assist countries to design effective and robust SSB tax measures and counter food and beverage industry opposition: regulatory distinctions in tax coverage should be based on bona fide, evidence-based reasoning; evidence-based measures need to be tailored to a country’s public health objectives as part of a comprehensive strategy to address unhealthy diet consumption; procedural requirements and due process should be observed in the drafting and implementation of the measure; and regulatory space exists within domestic constitutions, laws and international trade and investment agreements recognising the sovereign right of states to regulate in the interests of public health.

Type
Articles
Copyright
© Cambridge University Press 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

5000 Citizens v Article 3 of Law 28705 (2011) EXP. No. 00032-2010-PI/TC, Tribunal Constitucional del Perú, 19 July.Google Scholar
ABC News (2017), ‘Australia wins landmark WTO tobacco plain packaging case’, ABC News, 5 May, http://www.abc.net.au/news/2017-05-05/australia-wins-landmark-wto-tobacco-packaging-case/8498750 [19 February 2018].Google Scholar
Agence France-Presse (2016), ‘Portugal to levy sugar tax on soft drinks in 2017’, The Guardian, 15 October, https://www.theguardian.com/society/2016/oct/15/portugal-to-levy-sugar-tax-on-soft-drinks-in-2017 [9 December 2017].Google Scholar
Archer Daniels Midland Company and Tate & Lyle Ingredients Americas, Inc. v. The United Mexican States (2007), ICSID Case No. ARB (AF)/04/5.Google Scholar
Australia – Certain Measures Concerning Trademarks, Geographical Indications and Other Plain Packaging Requirements Applicable to Tobacco Products and Packaging (‘Australia – Tobacco Plain Packaging’) (date pending), WT/DS435/441/458/467.Google Scholar
Australia – Certain Measures Concerning Trademarks, Geographical Indications and other Plain Packaging Requirements Applicable to Tobacco Products and Packaging (‘Australia – Tobacco Plain Packaging’) (2016), WT/DS435/441/458/467, Integrated Executive Summary of Australia’s Submissions, 23 March, Geneva.Google Scholar
Australian Government Department of Health (2014), ‘Market Research Reports on tobacco plain packaging and graphic health warnings’. http://www.health.gov.au/internet/main/publishing.nsf/Content/mr-plainpack [19February 2018].Google Scholar
Bødker, M., Pisinger, C., Toft, U. and Jørgensen, T. (2015), ‘The rise and fall of the world’s first fat tax’, Health Policy, 119(6): 737742.Google Scholar
Brazil – Retreaded Tyres (2007), ‘Brazil – Measures Affecting Imports of Retreaded Tyres’, Appellate Body Report, WT/DS332/AB/R, 3 December.Google Scholar
British American Tobacco South Africa (Pty) Ltd v Minister of Health (2012), (463/2011) [2012] ZASCA 107; [2012] 3 All SA 593 (SCA), 20 June.Google Scholar
British American Tobacco UK Ltd & Ors v Secretary of State for Health (‘BAT v Secretary of State for Health’) [2016] EWHC 1169 (Admin).Google Scholar
Caceres Corrales v Colombia (2010), Judgment C-830/10, Corte Constitucional de Colombia.Google Scholar
Canada –Autos (2000), ‘Canada – Certain Measures Affecting the Automotive Industry’, WTO Appellate Body Report, WT/DS139/AB/R, WT/DS142/AB/R, 31 May.Google Scholar
Canada – Periodicals (1997), ‘Canada – Certain Measures Concerning Periodicals’, WTO Appellate Body Report, WT/DS31/AB/R, 30 June.Google Scholar
Cargill, Incorporated v. United Mexican States (2009), (ICSID Case No. ARB(AF)/05/2).Google Scholar
Chipty, T. (2016), ‘Study of the impact of the tobacco plain packaging measure on smoking prevalence in Australia’, 24 January.Google Scholar
CITE (2016), Law 42, Diário da República, 1.ª série — N.° 248, Article 212, 28 December.Google Scholar
Colchero, M. A., Popkin, B. M., Rivera, J. A. and Ng, S. W. (2016), ‘Beverage purchases from stores in Mexico under the excise tax on sugar sweetened beverages: observational study’, BMJ, 352: h6704.Google Scholar
Colchero, M. A., Popkin, B. M., Rivera, J. A. and Ng, S. W. (2017), ‘Sustained consumer response: evidence from two-years after the sugar sweetened beverage tax in Mexico’, Health Affairs, 36(3): 564571.Google Scholar
Commonwealth of Australia (2009), ‘Australia: The Healthiest Country by 2020 – National Preventative Health Strategy – the roadmap for action’, Commonwealth of Australia, 30 June, http://www.health.gov.au/internet/preventativehealth/publishing.nsf/Content/CCD7323311E358BECA2575FD000859E1/%24File/nphs-roadmap.pdf [11 December 2017].Google Scholar
Corn Products International, Inc. v. United Mexican States (2008), ICSID Case No. ARB (AF)/04/1), 15 January.Google Scholar
Crisostomo, P. (2016), ‘Coca-Cola alega que imposto sobre as bebidas açucaradas é inconstitucional’, Publico, 10 November, https://www.publico.pt/2016/11/10/economia/noticia/cocacola-alega-que-o-imposto-sobre-as-bebidas-acucaradas-e-inconstitucional-1750671 [9 December 2017].Google Scholar
De Beer, B. (2016), ‘Coca-Cola cancel €40m Portugal investment due to “Soda Tax”’, The Portugal News Online, 17 November, http://www.theportugalnews.com/news/coca-cola-cancel-40m-portugal-investment-due-to-soda-tax/40229 [9 December 2017].Google Scholar
European Commission (2015), ‘State aid SA.33159 (2011/NN) – Denmark. Taxation of saturated fat in certain food products sold in Denmark’, 26 March, http://ec.europa.eu/competition/state_aid/cases/243577/243577_1637882_36_2.pdf [9 December 2017].Google Scholar
EC – Asbestos (2001), ‘European Communities – Measures Affecting Asbestos and Products Containing Asbestos’, WTO Appellate Body, WT/DS135/AB/R, 12 March.Google Scholar
General Agreement on Tariffs and Trade (GATT) (1994), LT/UR/A-1A/1/GATT/2 (signed 30 October 1947), as incorporated in Marrakesh Agreement Establishing the World Trade Organization, opened for signature 15 April 1994, 187, 33 I.L.M. 1153 (1994) (entered into force 1 January 1995) annex 1A.Google Scholar
Hawkes, C., Smith, T. G., Jewell, J., Wardle, J., Hammond, R. A., Friel, S., Thow, A. M. and Kain, J. (2015), ‘Smart Food Policies for obesity prevention’, Lancet, 385: 24102421.Google Scholar
Japan – Alcoholic Beverages II (1996), ‘Japan – Taxes on Alcoholic Beverages’, WTO Appellate Body Report, WT/DS8/AB/R, WT/DS10/AB/R, WT/DS11/AB/R, 4 October.Google Scholar
Korea – Alcoholic Beverages (1999), ‘Korea – Taxes on Alcoholic Beverages’, WTO Appellate Body Report, WT/DS75/AB/R, WT/DS84/AB/R, 18 January.Google Scholar
The Lancet (2017), ‘Obesity: the sweet revenge of tax’, The Lancet Public Health, 2(1): e1.Google Scholar
McCabe Centre for Law and Cancer (2017), ‘WHO FCTC knowledge hub on legal challenges to WHO FCTC implementation’, http://untobaccocontrol.org/kh/legal-challenges/ [9 December 2017].Google Scholar
Methanex Corporation v. United States of America (2005), 44 ILM 1345.Google Scholar
Mexico – Taxes on Soft Drinks (2005), ‘Mexico – Tax Measures on Soft Drinks and Other Beverages’, WTO Panel Report, WT/DS308/R, 7 October.Google Scholar
Mexico – Taxes on Soft Drinks (2006), ‘Mexico – Tax Measures on Soft Drinks and Other Beverages’, WTO Appellate Body Report, WT/DS308/AB/R, 6 March.Google Scholar
Mitchell, A. and Voon, T. (2011), ‘Implications of the World Trade Organization in combating non-communicable diseases’, Public Health, 125: 832839.Google Scholar
National Institute for Health Development (2013), ‘Impact Assessment of the Hungarian Public Health Product Tax (NETA)’, www.oefi.hu [11 December 2017].Google Scholar
Philip Morris Asia Limited v Commonwealth of Australia (‘Philip Morris Asia v. Australia’), PCA Case No 2012-12 [17 December 2015].Google Scholar
Philip Morris Brands Sàrl, Philip Morris Products S.A. and Abal Hermanos S.A. v. Oriental Republic of Uruguay (‘Philip Morris v. Uruguay’) (2016), ICSID Case No ARB/10/7, 8 July 2016.Google Scholar
Philip Morris Norway v Health and Care Services of Norway (2012), Civil Action No. 10-041388TVI-OTIR/02, 14 September.Google Scholar
Reuters, Tsikas, M. (2016), ‘Coca-Cola diz que taxa sobre açúcar é inconstitucional’, DN, 10 November, https://www.dn.pt/dinheiro/interior/coca-cola-diz-que-taxa-sobre-acucar-e-inconstitucional-5491068.html [9 December 2017].Google Scholar
Saluka Investments BV (The Netherlands) v Czech Republic (Partial Award) (2006), Permanent Court of Arbitration, 17 March.Google Scholar
Schreuer, C. (2005), ‘Fair and equitable treatment in arbitral practice’, Journal of World Investment and Trade, 6(3): 357.Google Scholar
Sergei Paushok, CJSC Golden East Company and CJSC Vostokneftegaz Company v. The Government of Mongolia (2011), UNCITRAL, Award on Jurisdiction and Liability, 28 April.Google Scholar
Snowdon, W. (2014), ‘Sugar-sweetened beverages in Pacific Island countries and territories: problems and solutions?’, Pacific Health Dialog, 20(1): 4346.Google Scholar
Thow, A. M., Downs, S. and Jan, S. (2014), ‘A systematic review of the effectiveness of food taxes and subsidies to improve diets: understanding the recent evidence’, Nutrition Reviews, 72(9): 551565.Google Scholar
Tobacco Plain Packaging Act 2011, Australia.Google Scholar
Toto Costruzioni Generali S.p.A. v. The Republic of Lebanon (2012), (ICSID Case No. ARB/07/12), 7 June.Google Scholar
TPN/PA (2017), ‘Government prepares “smarter” sugar tax revamp’, The Portugal News Online, 15 June, http://www.theportugalnews.com/news/government-prepares-smarter-sugar-tax-revamp/42249 [9 December 2017].Google Scholar
UK Government (2017), ‘Spring Budget 2017: Philip Hammond’s speech’, 8 March, https://www.gov.uk/government/speeches/spring-budget-2017-philip-hammonds-speech [9 December 2017].Google Scholar
United Nations General Assembly (1966), International Covenant on Economic, Social and Cultural Rights, United Nations, Treaty Series, Volume 993, New York: United Nations General Assembly, 3.Google Scholar
United Nations General Assembly (2011), ‘Political declaration of the high-level meeting of the general assembly on the prevention and control of noncommunicable diseases’, New York, 19 September (A/RES/66/2), http://www.who.int/nmh/events/un_ncd_summit2011/political_declaration_en.pdf [9 December 2017].Google Scholar
US – Clove Cigarettes (2011), ‘United States – Measures Affecting the Production and Sale of Clove Cigarettes’, WTO Panel Body Report, WT/DS406/R, 2 September.Google Scholar
US – Clove Cigarettes (2012), ‘United States – Measures Affecting the Production and Sale of Clove Cigarettes’, WTO Appellate Body Report, WT/DS406/AB/R, 4 April.Google Scholar
US – COOL (2012), ‘United States – Certain Country of Origin Labelling (COOL) requirements’, WTO Appellate Body Report, WT/DS384/AB/R, WT/DS386/AB/R, 29 June.Google Scholar
US – Gambling (2005), ‘United States – Measures Affecting the Cross-Border Supply of Gambling and Betting Services’, WTO Appellate Body Report, (DS 285), 7 April.Google Scholar
US – Tuna II (2012), ‘United States – Measures Concerning the Importation, Marketing and Sale of Tuna and Tuna Products’, WTO Appellate Body Report, WT/DS381/AB/R, 16 May.Google Scholar
Van den Bossche, P. and Zdouc, W. (2013), The Law and Policy of the World Trade Organization, Cambridge: Cambridge University Press.Google Scholar
World Cancer Research Fund International (2017a), ‘NOURISHING Framework’, http://www.wcrf.org/int/policy/nourishing-framework [9 December 2017].Google Scholar
World Cancer Research Fund International (2017b), ‘Weight & Cancer’, http://www.wcrf.org/int/cancer-facts-figures/link-between-lifestyle-cancer-risk/weight-cancer [9 December 2017].Google Scholar
World Health Assembly (2017), ‘Preparation for the third High-level Meeting of the General Assembly on the Prevention and Control of Non-communicable Diseases, to be held in 2018’. WHA70.11, 31 May 2017, http://apps.who.int/gb/ebwha/pdf_files/WHA70/A70_R11-en.pdf, 70th World Health Assembly [9 December 2017].Google Scholar
World Health Organization (WHO) (2004), Global Strategy on Diet and Physical Activity, Geneva: WHO.Google Scholar
World Health Organization (WHO) (2013), Global Action Plan for Prevention and Control of Noncommunicable Disease 2013-2020, Geneva: WHO.Google Scholar
World Health Organization (WHO) (2014), Comprehensive Implementation Plan on Maternal, Infant, and Young Child Nutrition, Geneva: WHO.Google Scholar
World Health Organization (WHO) (2015), Guideline: Sugars Intake for Adults and Children, Geneva: WHO.Google Scholar
World Health Organization (WHO) (2016a), ‘Fiscal policies for diet and prevention of noncommunicable diseases: technical meeting report, 5–6 May 2015’. Geneva: WHO. http://apps.who.int/iris/bitstream/10665/250131/1/9789241511247-eng.pdf?ua=1 [9 December 2017].Google Scholar
World Health Organization (WHO) (2016b), Report of the Commission on Ending Childhood Obesity, Geneva: WHO.Google Scholar
World Health Organization (WHO) (2017a), ‘Obesity situation and trends’, http://www.who.int/gho/ncd/risk_factors/obesity_text/en/ [9 December 2017].Google Scholar
World Health Organization (WHO) (2017b), ‘Obesity and overweight’. http://www.who.int/mediacentre/factsheets/fs311/en/ [9 December 2017].Google Scholar
World Health Organization (WHO) (2017c), ‘Preparation for the third High-level Meeting of the General Assembly on the Prevention and Control of Non-communicable Diseases, to be held in 2018’; Provisional agenda item 15.1; A70/27; 18 May, http://apps.who.int/gb/ebwha/pdf_files/WHA70/A70_27-en.pdf [9 December 2017].Google Scholar
World Health Organization (WHO) (2017d), ‘Tobacco’, http://www.who.int/mediacentre/factsheets/fs339/en/ [19 February 2018].Google Scholar
WHO Framework Convention on Tobacco Control (WHO FCTC) (2005), opened for signature 21 May 2003, 2302 UNTS 166 (entered into force 27 February 2005).Google Scholar
WHO Regional Office for Africa (2017), ‘WHO commends South African parliament decision to pass tax bill on sugary drinks’, http://www.afro.who.int/news/who-commends-south-african-parliament-decision-pass-tax-bill-sugary-drinks [9 December 2017].Google Scholar
WHO Regional Office for Europe (2015), ‘Public health product tax in Hungary: An example of successful intersectoral action using a fiscal tool to promote healthier food choices and raise revenues for public health’, WHO Regional Office for Europe, http://www.euro.who.int/__data/assets/pdf_file/0004/287095/Good-practice-brief-public-health-product-tax-in-hungary.pdf?ua=1 [9 December 2017].Google Scholar
WHO Regional Office for Europe (2016), ‘Assessment of the impact of a public health product tax. Final report Budapest, November 2015’, http://www.euro.who.int/__data/assets/pdf_file/0008/332882/assessment-impact-PH-tax-report.pdf?ua=1 [9 December 2017].Google Scholar
World Trade Organization (WTO) (2017a), ‘Dispute Settlement – DS308- Mexico – Tax measures on soft drinks and other beverages’, https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds308_e.htm [9 December 2017].Google Scholar
World Trade Organization (WTO) (2017b), ‘Technical barriers to trade’, https://www.wto.org/english/tratop_e/tbt_e/tbt_e.htm [9 December 2017].Google Scholar
World Trade Organization (WTO) (2017c), ‘Trade-related aspects of intellectual property rights’, https://www.wto.org/english/tratop_e/trips_e/trips_e.htm [9 December 2017].Google Scholar
World Trade Organization (WTO) (2017d), ‘Council for TRIPS’, https://www.wto.org/english/tratop_e/trips_e/intel6_e.htm [9 December 2017].Google Scholar