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The Commonwealth of Australia was able to convince the international arbitral tribunal that Philip Morris should not be permitted to plead the merits of its case because it had engaged in treaty shopping as it was a US investor when the plain packaging laws were introduced, but became a Hong Kong investor as a flag of convenience to take advantage of the Australia-Hong Kong bilateral investment treaty and therefore access arbitration

Related: Visit the World Bank Group Global Tobacco Control Program website U.S

With that comes greater risk, says DSouza