Tobacco companies and industry groups from Europe and Kenya have issued fresh warning against a bill requiring plain packaging of cigarettes in Australia. The country targets to amend the trademarks law to support the bill pushing for plain packaging for cigarettes.

Camel and More cigarettes manufacturer JTI said Australia risks facing intellectual property disputes before the World Trade Organization (WTO) while the British American Tobacco Australia (BATA) threatened to sue the government if the legislature passes the bill.

The Kenya Association of Manufacturers (KAM) also warned of political backlash from countries to be impacted by the legislation. In Monday's Senate committee inquiry into the federal government's proposed law, KAM said Kenya's tobacco industry is a main source of revenue and foreign exchange, so a diplomatic fallout with Australia is possible.

KAM told the Senate inquiry that Australia should defer the plain-packaging laws and enter into talks with nations to be affected by the same laws requiring cigarette box labels to indicate only the brand name.

Business Europe warned that the bill is inconsistent with international treaties on intellectual property negotiated through the WTO and threatens to undermine the protection of intellectual property around the world.

Industry groups from Quebec, the Ukraine, Chile, Brazil, Peru and East Africa have also criticized the controversial bill being supported by political parties and health experts.