The World Trade Organization (WTO) appellate body on Wednesday said the U.S. ban on clove cigarettes was discriminatory because a similar product, menthol cigarettes, can still be sold in the United States.

Indonesia, the world's top producer of clove cigarettes and the source of the vast majority of those smoked in the United States, brought the case to the WTO in April 2010, arguing that the U.S. ban was discriminatory and unnecessary. A WTO dispute panel agreed on the first point but not the second in a ruling last September, and the United States launched an appeal in January. The latest WTO ruling rejected the 'unnecessary' argument stating, "there is extensive scientific evidence supporting the conclusion that banning clove and other flavoured cigarettes could contribute to reducing youth smoking".
There is no further appeal against the WTO ruling, which will require the United States to bring its rules into compliance.
U.S. rules prohibit the production and sale of cigarettes with characterizing flavors such as clove, cinnamon, strawberry or cherry, but not regular or menthol cigarettes.
"The United States is very disappointed with the outcome of this dispute," Reuters quoted Nkenge Harmon, a spokeswoman for the U.S. Trade Representative's Office, as saying. "The ban on cigarettes with flavors is part of landmark U.S. legislation to combat the public health crisis caused by tobacco products." (pi)