Uruguay has won a legal battle to stop tobacco company Philip Morris using terms such as 'light' and 'mild' on its packaging.
It has also ensured that graphic warnings will cover 80 per cent of the giant's cigarette packs.
The ruling by a World Bank arbitration tribunal ends a six-year legal battle in which the Philip Morris company tried to convince the small country not to pursue strong tobacco legislation.
Public Health Association of Australia (PHAA) past president Professor Mike Daube said the win would encourage other countries to take on the tobacco industry with measures such as plain packaging.
Last year, Philip Morris lost a four-year struggle to overturn legislation in Australia requiring cigarettes to be sold only in logo-free packs featuring graphic health warnings.
“Philip Morris will need to think twice about taking on other countries in legal battles,” Daube said.
“Uruguay refused to be intimidated by Big Tobacco, and has been completely vindicated."