Cuba challenges Aussie cigarette packs

Cuba is seeking to legally challenge the Gillard government's plain packaging legislation through the WTO . Picture: Kym Smith Source: News Limited

• First step in a trade dispute which could last for years
• First-ever challenge from Cuba since its joined WTO in 1995
• Complaint says plain packs breach intellectual property rights

CUBA has become the latest country to launch a legal attack on Australia's landmark plain packaging rules for tobacco at the World Trade Organisation, the global body says.

The WTO said that Cuba had requested consultations with Australia on law requiring tobacco products to be sold in identical, olive-brown boxes bearing the same typeface and health warnings with graphic images of diseased smokers.

Under the 159-nation WTO's rules, requesting consultations is the first step in an often complex trade dispute settlement process which can last for several years.

Given that the legislation covers all tobacco products, not just cigarettes, it has already been challenged at the WTO by Cuba's fellow cigar-producing nations Honduras and the Dominican Republic.

In addition, Ukraine has filed a suit at the Geneva-based body, which oversees its member nations' respect for the rules of global commerce.

All the plaintiff countries maintain that Australia's packaging law breaches international trade rules and intellectual property rights.

In the event that the WTO's disputes settlement body finds in their favour, it would have the power to authorise retaliatory trade measures against Australia if the country failed to fall into line.

The dispute with Australia marks the first-ever challenge by Cuba against a fellow member since it joined the global body in April 1995, four months after the WTO was founded in its current form.

The legislation - passed in 2011 and brought into force last December - has won wide praise from health organisations which are trying to curb smoking.

The Australian government has faced a string of court challenges from tobacco firms.

Besides trade and intellectual property concerns, tobacco companies say there is no proof that plain packaging reduces smoking and have warned that the law sets a precedent that could spread to products such as alcohol.

New Zealand has announced plans to bring in its own plain packaging law this year, making it only the second country in the world to do so.

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TV exec, daughter killed in boat crash

Nicholas Milligan. Picture: supplied Source: Supplied

A SENIOR executive with broadcaster BSkyB has died in a speedboat accident that also killed his eight-year-old daughter and left four others seriously injured, British police say.

Devon and Cornwall Police on Monday said 51-year-old Nicholas Milligan, managing director of the broadcaster's advertising sales arm Sky Media, was killed in the accident on Sunday in the resort of Padstow, southwest England.

Witnesses and coast guards said six people were thrown from a motorboat, which then ran out of control in circles until local people were able to jump aboard and stop the engine.

A 39-year-old woman, a four-year-old boy and girls aged 10 and 12, are being treated for serious injuries.

BSkyB is one of Britain's biggest broadcasters.

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NZ to close Dotcom spy loophole

Megaupload founder Kim Dotcom launches his new website at his mansion in Auckland on January 20. New Zealand plans to change its spy laws to allow snooping on its own citizens, after illegally monitoring Dotcom. Picture: AFP Source: AFP

NEW Zealand unveiled plans to allow its foreign intelligence agency to spy on local residents, to fill a loophole exposed when Internet tycoon Kim Dotcom was illegally snooped upon.

Prime Minister John Key said the Government Communications Security Bureau (GCSB) needed additional powers because the challenges facing intelligence agencies had changed enormously in the past decade.

"In large part, this is due to the rapid evolution of technology in areas like cyber-security and the threat of cyber-attacks," he said.

"It's vital that legislation in this area is fit for purpose and keeps pace with changes in the operating environment, while also safeguarding the rights of law-abiding New Zealanders."

Existing legislation says the GCSB is supposed to focus on foreign intelligence and cyber-security, explicitly forbidding it from spying on New Zealand citizens or residents.

But it was revealed last year that it spied on Dotcom, a German national with New Zealand residency, before armed police raided his Auckland mansion in January 2012 and arrested him for online piracy.

Mr Key issued a public apology to Dotcom and a subsequent inquiry released last month found another 88 New Zealand citizens or residents may have been illegally spied on. Details of the cases were not released.

Under reforms to be introduced to parliament this week, the GCSB will be able to spy on New Zealanders provided it receives permission from Mr Key, who holds ministerial responsibility for the agency.

Dotcom has received clearance from the New Zealand courts to attempt to sue the GCSB and police, alleging wrongful arrest.

The opposition Labour Party said extending the GCSB's powers was a "band aid" solution that did nothing to address a lack of oversight which had shaken the public's trust in intelligence agencies.

"The state should not extend its powers to spy on citizens lightly... (John Key) is asking New Zealanders to trust him to personally to decide who can be spied on, despite his record of lax oversight of the GCSB," Labour leader David Shearer said.

Dotcom, 39, was arrested by New Zealand authorities cooperating with a massive US probe into online piracy.

US authorities allege his Megaupload and related file-sharing sites netted more than US$175 million ($170 million) and cost copyright owners more than US$500 million by offering pirated copies of movies, TV shows and other content.

Dotcom, who changed his name from Kim Schmitz, denies any wrongdoing and is free on bail in New Zealand ahead of an extradition hearing scheduled in August.
 

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Italy's ex-Premier Giulio Andreotti dies

Italy's former seven-time premier Giulio Andreotti, seen here Dec. 8, 2001, has died at age 94. Source: AP

GIULIO Andreotti, Italy's former seven-time premier and a symbol of post-war Italy, died Monday at his home in Rome, Italian officials said. He was 94.

In announcing the death, Rome Mayor Gianni Alemanno called Mr Andreotti "the most representative politician" Italy had known in its recent history.

At his prime, Mr Andreotti was one of Italy's most powerful men: He helped draft the country's constitution after World War II, sat in parliament for 60 years and served as premier seven times. Until his death, he remained a senator-for-life.

But the Christian Democrat who was friends with popes and cardinals was also a controversial figure who survived corruption scandals and allegations of aiding the Mafia.

He was accused of exchanging a "kiss of honor" with the mob's longtime No. 1 boss and indicted in what was called "the trial of the century" in Palermo. He was eventually cleared.

Mr Andreotti was as known for his political acumen as for his subtle humor and witty allusions. With sharp eyes, thin lips and a stooped figure, he was immediately recognizable to generations of Italians. Friends and foes alike admired his intellectual agility and grasp of the issues.

"Power wears out ... those who don't have it," he once famously said.

Mr Andreotti's rise in the Italian political scene mirrored the rise of Italy, which was then emerging from two decades of Fascist dictatorship under Benito Mussolini. He joined the conservative Christian Democrats, was part of the Constituent Assembly that wrote the constitution and was elected to parliament in 1948.

He remained ever since.

He held a series of Cabinet positions after the war, until he became premier for the first time in 1972. Twenty years later, he finished his last stint as premier.

Although staunchly pro-American and a firm supporter of Italy's NATO membership, Mr Andreotti was the first Christian Democrat to accept Communist support, even if indirect, in one of his governments.

The Cabinet that was formed after big Communist gains in the 1976 general election needed the Communists and other leftists to abstain - rather than cast "no" votes - during parliamentary votes.

By the early 1990s, a vast corruption drive led by prosecutors - the "Clean Hands" probe - swept through parliament and hobbled most existing political parties. Mr Andreotti's Christian Democrats were among them, but the scandal did not touch him personally and he managed to stay on as premier until an election in 1992.

Soon, however, an even more damaging accusation would befall Mr Andreotti. In 1993, a Mafia informer told prosecutors that Mr Andreotti had been involved in the 1979 slaying of journalist Mino Pecorelli, a muckraking journalist killed in a mob-style execution in Rome by four shots from a pistol with a silencer.

Pecorelli's articles had often targeted Mr Andreotti, along with a range of public figures. Mr Andreotti was sometimes referred to in print as "The Godfather."

The prosecution argued that the Mafia killed Pecorelli at the behest of Mr Andreotti, who allegedly feared the reporter had dug up compromising information. Mr Andreotti has always denied the charges, saying he was targeted by mobsters getting even for his crackdowns on organized crime.

The lengthy case - dubbed by the Italian press "the trial of the century" - resulted in an acquittal in 1999; a shock conviction and sentence to 24 years in prison by an appeals court in November 2002; and, in the third and final judgment a year later, another acquittal.

"Some might have hoped I wouldn't get here. But here I am, thanks to God," Mr Andreotti, then 84, said at the time of the final ruling.

In a separate case during the same years, Mr Andreotti stood trial in Palermo on charges that he colluded with the Mafia. But he was cleared in that case too.

Palermo prosecutors relied heavily on accounts by Mafia turncoats, including a mobster who testified that Mr Andreotti had once exchanged a "kiss of honor" with Salvatore Riina, the "boss of all bosses" and a longtime fugitive who was captured in 1993. They alleged Mr Andreotti granted favors for the mob in exchange for their delivering Sicilian votes for his party.

Mr Andreotti always denied the charges, again maintaining he was a victim of mobsters intent on taking revenge for his fight against the Mafia.

Mr Andreotti was born to schoolteachers in Rome on Jan. 14, 1919. He earned a law degree at Rome University and became a journalist after graduation.

During World War II he worked as a librarian in the Vatican, and it was there that he met several politicians, including Alcide De Gasperi, who went on to become Italy's foremost postwar statesman.

At age 35, Mr Andreotti became Italy's youngest interior minister ever. It was the beginning of a career during which he navigated the Byzantine world of Italian politics like no other, accumulating power, honors and enemies along the way.

Such was his reach that he was sometimes called "Divo Giulio" - a play on his name Giulio and the latin "Divus Iulius" (or Divine Julius), which was used for Julius Caesar. His critics called him Beelzebub for what they considered his diabolical skills.

The one political prize he never achieved was to become president of the republic, a largely ceremonial but highly regarded office. He came closest in 1992, but his efforts failed amid the "Clean Hands" corruption scandals.

A practicing Roman Catholic, Mr Andreotti maintained solid ties to the Vatican throughout his political career. Emblematic of this stance was his Rome address, close to the centers of political power but also just across the Tiber from St. Peter's Square.

He wrote numerous books, some of them best-sellers, wrote articles for Italian publications and edited the monthly Catholic magazine 30 Giorni. He was courted on TV shows for his deep knowledge of Italian and world affairs as well as for his humor. He even made a guest appearance as himself in the movie, Il Tassinaro (The Taxi Driver) with fellow Roman and late comedian Alberto Sordi.

A probing portrait of him in the film Il Divo was honored with the Jury Prize at the Cannes Film Festival.

Mr Andreotti was married to Livia Danese. They had four children.

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Hong Kong's pink dolphins at risk

File photo of a pink dolphin playing in the waters off Lantau, Hong Kong. Source: AFP

CONSERVATIONISTS warned Monday that Hong Kong may lose its rare Chinese white dolphins, also known as pink dolphins for their unique colour, unless it takes urgent action against pollution and other threats.

Their numbers in Hong Kong waters have fallen from an estimated 158 in 2003 to just 78 in 2011, with a further decline expected when figures for 2012 are released next month, said the Hong Kong Dolphin Conservation Society.

"It is up to the government and every Hong Kong citizen to stand up for dolphins. We risk losing them unless we all take action," said society chairman Samuel Hung.

Two weeks ago a tour guide from Hong Kong Dolphinwatch spotted a group of pink dolphins helping a grieving mother support the body of her dead calf above the water in an attempt to revive it.

The scene, captured on video and widely shared on Facebook, has raised fresh concerns about the dwindling population in a city where dolphin watching is a tourist attraction.

"We're 99 per cent certain the calf died from toxins in the mother's milk, accumulated from polluted seawater," said Hong Kong Dolphinwatch spokeswoman Janet Walker, who added it was the third such incident reported in April alone.

Fewer than 2,500 of the mammals survive in the Pearl River Delta, the body of water between Macau and Hong Kong, with the majority found in Chinese waters and the rest in Hong Kong.

Experts say their number has dropped significantly in the past few years due to overfishing, an increase in marine traffic, water pollution, habitat loss and coastal development.

Hung said proposals to build a third runway on reclaimed land at the Hong Kong international airport would place further strain on the dolphins' habitat.

Campaigning against such developments and lobbying boat companies to divert traffic away from dolphin-inhabited areas are some of the ways people can support the mammals, he said.

The Chinese white dolphins, a population of the Indo-Pacific humpback dolphin species, are listed as "near-threatened" by the International Union for Conservation of Nature.

The pink dolphin was the official mascot at the handover ceremony when the former British colony was returned to Chinese rule in 1997.

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White House push in China 'poisoning'

A petition to deport a Chinese woman in the US who allegedly poisoned her roommate almost 20 years ago has attracted more than 100,000 signatures, forcing a response from the Obama administration. Picture: AP Source: AP

AN almost 20-year-old case of a Beijing student left paralysed after allegedly being poisoned was back in the spotlight in Chinese state media after a petition was posted on the White House website.

Zhu Ling suffered severe brain damage after, according to the petitioners, she was poisoned with thallium by her roommate Sun Wei when the two were studying chemistry at Tsinghua University in 1994.

Thallium, a soft metal, has long been used as a murder weapon as it dissolves in water and is odourless and tasteless.

Ms Sun, who now lives in the US, "had the motive and access to the deadly chemical", said the petition, which calls for her deportation back to China.

By Monday afternoon it had attracted more than 100,000 signatures - meaning that the Obama administration will issue a response, according to the White House website.

"The number of signatures is growing rapidly, with an average of 100 people signing every minute," the state-run Global Times newspaper said earlier.

The case is the subject of intense speculation on China's hugely popular Internet chat rooms, with many claiming that a previous investigation by Chinese police was dropped because of Ms Sun's family connections.

Ms Sun has never been formally charged. The state news agency Xinhua quoted her as saying in an online posting last month that she wants to see those responsible brought to justice.

Her grandfather Sun Yueqi was a senior official of Chiang Kai-Shek's Kuomintang before allying with the Communists in 1949, just before they took power.

He is said to have been close to the father of former Chinese leader Jiang Zemin.

Another relative, Sun Fuling, was vice chairman of the advisory Chinese People's Political Consultative Conference when Zhu was allegedly poisoned, having previously been vice mayor of Beijing.

"The White House website is now the PRC's (China's) State Bureau for letters and calls," said Luo Changping, deputy managing editor of state-run business magazine Caijing.

The US-based Help Zhu Ling Foundation, which collects donations for the Zhu family, issued a statement on its own weibo page Sunday distancing itself from the petition, saying it contained factual errors and was "hasty".

A commentary by Xinhua on Monday called for the facts of the case to be established.

"Only with the emergence of the truth will there be trust in the judicial system," it said.

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Brands risk image in disaster response

Pairs of brand new denim jeans are strewn over rubble from the collapsed garment factory building, May 4, 2013 in Savar, near Dhaka, Bangladesh. Source: AP

GLOBAL clothing brands involved in Bangladesh's troubled garment industry responded in starkly different ways to the building collapse that killed more than 600 people.

Some quickly acknowledged their links to the tragedy and promised compensation. Others denied they authorised work at factories in the building even when their labels were found in the rubble.

The first approach seems to deserve plaudits for honesty and compassion. The second seems calculated to minimise damage to a brand by maximising distance from the disaster. Communications professionals say both are public relations strategies and neither may be enough to protect companies from the stain of doing business in Bangladesh.

Such experts say that with several deadly disasters and fires in Bangladesh's $US20 billion ($19.51 billion) garment industry in the past six months, possibly the only way retailers and clothing brands can protect their reputations is to visibly and genuinely work to overhaul safety in Bangladesh's garment factories. A factory fire killed 112 workers in November and a January blaze killed seven.

"Just public relations is not going to do it," said Caroline Sapriel, managing director of CS&A, a firm that specialises in reputation management in crisis situations.

Over the past decade, major players in the fashion industry have flocked to Bangladesh, where a minimum wage of about $38 a month has helped boost profits in a global business worth $1 trillion a year. Clothing and textiles now make up 80 per cent of Bangladesh's exports and employ several million people.

Yet the country's worker safety record has become so notorious that the reputational risks of doing business there may have become too great even for retailers and brands that didn't work with factories in the collapsed Rana Plaza building or the Tazreen Fashions factory that burned late last year.

"I don't think it's enough anymore to say 'We're not involved in these particular factories,'" Ms Sapriel said.

Many clothing brands were quick to distance themselves from the five factories that were housed in Rana Plaza. The building, which was not designed for industrial use and had three illegally added levels, collapsed April 24.

Benetton said none of the factories were its authorized suppliers, although Benetton labels were found in the rubble. Spain's Mango said it hadn't bought clothing from Rana Plaza factories but acknowledged it had been in talks with one factory to produce a test batch of clothing.

German clothing company KiK said it was "surprised, shocked and appalled" to learn its T-shirts and tops were found in the rubble. The company said it stopped doing business with the Rana Plaza factories in 2008. It promised an investigation.

Wal-Mart said there was no authorized production of its clothing lines at Rana Plaza but it was investigating whether there was unapproved subcontracting. Swedish retailer H&M, the single largest customer of Bangladeshi garment factories, said none of its clothes were produced there.

The Walt Disney Co. in March responded to publicity from last year's fire at the Tazreen factory, where its branded clothing was found, by pulling out of Bangladesh production altogether.

Only a few companies, including Britain's Primark and Canada's Loblaw Inc., which owns the Joe Fresh clothing line, have acknowledged production at Rana Plaza and promised compensation. Loblaw's CEO said there were 28 other brands and retailers using the five factories and urged them to end their "deafening silence."

Companies that are downplaying involvement in Bangladesh's factory safety problems may be counting on the short memories of Western consumers, who tend to focus on price and may not even check where a piece of clothing has been made. But that's a risky strategy, said Rahul Sharma, public affairs executive with the India-based public relations firm Genesis Burston-Marsteller.

"Reputation is built over a long period of time. But to lose it, it can take seconds," Sharma said. Even companies that do make efforts to ensure they use only factories with good safety records are now at risk of being lumped in with the problems that are rife in Bangladesh's garment industry, he said.

Sharma said that if he were advising any retailer doing business in Bangladesh, he would recommend swift action in the form of a concrete plan to overhaul the entire industry, working with government, factory owners and labor unions.

"They need to send out the message that they are addressing this problem - and then they need to actually do it," he said.

In the wake of the Rana Plaza collapse, there have been tentative moves to do that. Last week, the Bangladeshi garment association met with representatives of 40 garment buyers including H&M, JC Penny, Gap, Nike, Li & Fung and Tesco.

Others have called for retailers and brands to now embrace a union-proposed plan for all retailers to fund factory upgrades and independent inspections that would cover the entire industry in Bangladesh.

That plan has previously been rejected by all but two major brands as too expensive for the corporations and Bangladesh's responsibility to fix its own problems. PVH, the parent company of Calvin Klein and Tommy Hilfiger brands, and German retailer Tchibo were willing to sign up.

But with the latest disaster, a potential loss of reputation could be far more expensive in the long run.

"There is a perception when something terrible like this happens, that crisis communication is going to fix it," Sapriel said. "But no, no. You have to go and fix the problem. And then, only then, can you can communicate that you've done something to fix the problem."

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Bashful can now buy Viagra online

In a first for the drug industry, Pfizer will sell erectile dysfunction pill Viagra directly to patients on its website. Picture: AP Photo/Pfizer, William Vazquez Source: AP

MEN who are bashful about needing help in the bedroom can now buy that little blue pill online.

In a first for the drug industry, Pfizer will begin selling its popular erectile dysfunction pill Viagra directly to patients on its website.

Men still will need a prescription to buy the blue, diamond-shaped pill on viagra.com, but they no longer have to face a pharmacist to get it filled. And for those who are bothered by Viagra's steep $25-a-pill price, Pfizer is offering three free pills with the first order and 30 per cent off the second one.

Pfizer's bold move blows up the drug industry's distribution model. Drugmakers don't sell medicines directly to patients. Instead, they sell in bulk to wholesalers, who then distribute the drugs to pharmacies, hospitals and doctors' offices.

But the world's second-largest drugmaker is trying a new strategy to tackle a problem that plagues the industry. Unscrupulous online pharmacies increasingly offer patients counterfeit versions of Viagra and other brand-name drugs for up to 95 per cent off with no prescription needed. Patients don't realise the drugs are fake or that legitimate pharmacies require a prescription.

Other major drugmakers likely will watch Pfizer's move closely. If it works, drugmakers could begin selling other medicines that are rampantly counterfeited and sold online, particularly treatments for non-urgent conditions seen as embarrassing. Think: diet drugs, medicines for baldness and birth control pills.

"If it works, everybody will hop on the train," says Les Funtleyder, a health care strategist at private equity fund Poliwogg who believes Pfizer's site will attract "fence-sitters" who are nervous about buying online.

The online Viagra sales are Pfizer's latest effort to combat a problem that has grown with the popularity of the Internet.

Counterfeit Viagra pills, top and bottom left, are displayed alongside real ones, top and bottom right. Pfizer will sell Viagra online as fake pills sold at online drugstores has cut into its business. Picture: AP

In recent years, Americans have become more comfortable with online shopping, with many even buying prescription drugs online. That's particularly true for those who don't have insurance, are bargain hunters or want to keep their medicine purchases private.

Few realise that the vast majority of online pharmacies don't follow the rules.

The Internet is filled with illegitimate websites that lure customers with spam emails and professional-looking websites that run 24-hour call centres. A January study by the US National Association of Boards of Pharmacy, which accredits online pharmacies, found that only 257 of 10,275 online pharmacy sites it examined appeared legitimate.

Experts say the fake drugs such websites sell can be dangerous. That's because they don't include the right amount of the active ingredient, if any, or they contain toxic substances such as heavy metals, lead paint and printer ink. They're generally made in filthy warehouses and garages in Asia, Eastern Europe and Latin America.

Online buyers are "playing Russian roulette," says Matthew Bassiur, vice president of global security at New York-based Pfizer.

"The factories are deplorable. I've seen photographs of these places," he says. "You wouldn't even want to walk in them, let alone ingest anything made in them."

Pfizer, which invented the term "erectile dysfunction," has long been aggressive in fighting counterfeiters. It conducts undercover investigations and works with authorities around the globe, with good reason.

Counterfeit versions of Viagra and dozens of other Pfizer medicines rob the company of billions in annual sales.

Viagra is one of its top drugs, with $US2 billion in worldwide revenue last year. And it's the most counterfeited drug in the US, according to the company.

A 2011 study, in which Pfizer bought "Viagra" from 22 popular Internet pharmacies and tested the pills, found 77 per cent were counterfeit. Most had half or less of the promised level of the active ingredient.

Viagra is appealing to counterfeiters because it carries a double whammy: It's expensive and it treats a condition with an "embarrassment" factor.

Crooks running the illegal online pharmacies brazenly explain their ultra-low Viagra prices - often $1 to $3 a pill - by claiming they sell generic Viagra.

Generics are copycat versions of brand-name prescription drugs. They can legally be made after a drugmaker's patent, or exclusive right to sell a drug, ends. Generic drugmakers don't have to spend $US1 billion or so on testing to get a new drug approved, so their copycat versions often cost up to 90 per cent less than the original drug.

But there is no such thing as generic Viagra. Pfizer has patents giving it the exclusive right to sell Viagra until 2020 in the US and for many years in other countries.

Many patients are unaware of that.

Dr. David Dershewitz, an assistant urology professor at New Jersey Medical School who treats patients at Newark's University Hospital, says erectile dysfunction is common in men with enlarged prostates, diabetes and other conditions, but most men are too embarrassed to discuss it.

He says well over half of his patients who do broach the issue complain about Viagra's price. Some tell Dr Dershewitz that they go online looking for bargains because they can't afford Viagra.

"The few that do admit to it have said that the results have been fairly dismal," but none has suffered serious harm, he says.

For Pfizer, that's a big problem. People who buy fake drugs online that don't work, or worse, harm them, may blame the company's product. That's because it's virtually impossible to distinguish fakes from real Viagra.

"The vast majority of patients do believe that they're getting Viagra," said Vic Cavelli, head of marketing for primary care medicines at Pfizer, which plans to have drugstore chain CVS Caremark fill the orders placed on viagra.com.

The sales lost to counterfeits threaten Pfizer at a time when Viagra's share of the $US5 billion-a-year global market for legitimate erectile dysfunction drugs has slipped, falling from 46 per cent in 2007 to 39 per cent last year, according to health data firm IMS Health.

The reason? Competition from rival products, mainly Eli Lilly's Cialis - a pill touted in the US in ubiquitous commercials featuring couples in his-and-hers bathtubs in bizarre places.

Judson Clark, an Edward Jones analyst, forecasts that Viagra sales will decline even further, about 5 per cent each year for the next five years, unusual "for a drug in its prime."

Mr Clark says he thinks Pfizer's strategy will prevent sales from declining, but he's unsure how well it will work.

"It's a very interesting and novel approach," he says. "Whether it returns Viagra to growth is hard to say."

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