What specific WTO rules did the US violate regarding flavoured cigarettes?

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US Violations of WTO Rules Regarding Flavoured Cigarettes

Indonesia is seeking compensation from the United States following a World Trade Organisation (WTO) ruling that found the US ban on clove cigarettes discriminatory and in violation of trade rules. The US health act, enacted in 2009, banned certain flavoured cigarettes, including clove, cinnamon, coffee, grape, and strawberry, while permitting menthol-laced tobacco products to remain on the market. This differential treatment was central to the WTO's finding against the US policy.
Discriminatory Treatment of Clove Cigarettes

The WTO determined that the US policy was discriminatory because it allowed domestically produced menthol cigarettes to be sold while prohibiting Indonesia's clove cigarettes. This distinction was viewed as a breach of trade regulations, as it unfairly targeted a specific imported product while exempting a similar domestic one. Indonesia argued that this policy allowed menthol tobacco to remain on the market, thereby flouting trade rules under the US health act.
Impact of the Ban on Indonesian Industry

The ban has resulted in significant annual losses for Indonesia, estimated to be between US$200 million and US$300 million since its implementation in 2009. The production of clove-laced tobacco is a substantial industry in Indonesia, with claims that over six million citizens depend directly or indirectly on its production. The Indonesian trade ministry views the US's failure to rectify its policy, despite the WTO's recommendations, as a perplexing stance, especially given the US's usual emphasis on adherence to WTO disciplines.
WTO's Stance on US Efforts to Curb Youth Smoking

While the WTO ruled in favour of Indonesia regarding the discriminatory nature of the ban, it did not dismiss the US's underlying objective. The organisation acknowledged the legitimacy of the US's efforts to curb youth smoking. However, the WTO also rejected Indonesia's broader suggestion that a ban on flavoured tobacco in general was unnecessary, indicating a focus on the specific discriminatory application of the US policy rather than the principle of flavour bans themselves.

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What specific WTO rules did the US violate regarding flavoured cigarettes?

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