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GLOBAL TOBACCO TREATY PARTIES MEET TO TACKLE TOBACCO SMUGGLING 1ST MEETING ON PREVENTING ILLICIT TOBACCO TRADE OPENS For Immediate Release: Contact: GENEVA—On the heels of a sweeping report by the World Health Organization on the global tobacco epidemic, parties to the global tobacco treaty are beginning negotiations to stem the illicit tobacco trade. And as the international process moves forward, Representative Lloyd Doggett (D-TX) is introducing the Smuggled Tobacco Prevention Act (the STOP Act) in the U.S. Congress. The illicit trade represents approximately 10 percent of global tobacco sales, and costs governments between U.S. $40 and $50 billion annually in lost revenue. There is widespread evidence that tobacco transnationals like Philip Morris/Altria, British American Tobacco (BAT) and Japan Tobacco (JT) have benefited from—and even been complicit in—tobacco smuggling. “This week, governments have a new opportunity to prioritize health over trade and commercial interests, and hold tobacco transnationals accountable for the harms they cause,” said Kathy Mulvey of Corporate Accountability International, a Boston-based health organization that is observing the Geneva negotiations. "Big Tobacco is making tremendous profits at a huge cost to people’s health and public coffers." This week's negotiations will initiate development of an illicit trade protocol to the global tobacco treaty. Since more than 150 countries have ratified the treaty, the protocol could have a significant impact in stemming the illicit trade worldwide. Smuggling and other forms of illicit trade open up new markets for brands like Philip Morris/Altria’s Marlboro, BAT’s Dunhill and JT’s Mild Seven, and addict new customers with lower-priced tobacco products that have evaded taxes. "The protocol must be strong and flexible enough to address a changing industry," said Akinbode Oluwafemi of Environmental Rights Action (Nigeria), a member of the Network for Accountability of Tobacco Transnationals (NATT). "If history is any indication, the tobacco industry will take every opportunity to circumvent the treaty and undermine its implementation." In recent weeks, tobacco giant Philip Morris/Altria announced a split that allows its international offshoot to avoid U.S. legal and public relations liabilities. The treaty protocol is aimed at preventing Philip Morris International from now exploiting markets in some of the world’s poorest countries. Corporate Accountability International and NATT are calling on Parties to draft a protocol that:
In the U.S., negotiated protocols will not apply however. The Bush Administration has refused to send the treaty to the Senate for ratification. Since the U.S. is one of the few holdouts in ratifying the treaty, stemming the illegal tobacco trade domestically falls to Congress in the form of the STOP Act. “By reducing tobacco smuggling, the bill will improve public health, collect more government revenue, and curb a source of funding for organized crime and terrorists,” Congressman Doggett said. ### Corporate Accountability International, formerly Infact, is a membership organization that protects people by waging and winning campaigns challenging irresponsible and dangerous corporate actions around the world. For 30 years, we’ve forced corporations—like Nestlé, General Electric and Philip Morris/Altria—to stop abusive actions. Corporate Accountability International, an NGO in Official Relations with the World Health Organization (WHO), played a key role in development of the Framework Convention on Tobacco Control (FCTC). The Network for Accountability of Tobacco Transnationals (NATT) includes more than 100 NGOs from over 50 countries working for a strong, enforceable Framework Convention on Tobacco Control.
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