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New Zealand is likely to follow Australia's lead that tobacco be sold in plain packaging, says the Associate Health Minister, Tariana Turia.
Australian health minister Nicola Roxon has drafted legislation requiring tobacco companies to print their brand name in a specific font.
If the legislation is passed, cigarette packs would be an ugly olive green because research showed this was the least attractive colour for smokers.
British American Tobacco Australia argued the proposal would infringe international trademark and intellectual property laws.
Australia would be the first country in the world to mandate plain packaging of cigarettes.
Mrs Turia said the Government would monitor progress but she expected the country would follow Australia's lead.
The Government has committed to making the country smokefree by 2025.
Officials were talking to Australian counterparts and would report back to the Cabinet by June 30.