Letter: NGOs Call on Uruguay to Stand Strong Against PMI

July 16, 2010
His Excellency, President of the Oriental Republic of Uruguay
Mr. José Mujica Cordano

Dear Mr. President:

We, the undersigned, are international public health organizations committed to reducing tobacco dependence all over the world for the purpose of protecting individuals, families and societies from the devastating harm caused by tobacco use and involuntary exposure to tobacco smoke.

First of all, we would like to take this opportunity to congratulate Uruguay again for its progress and international leadership acquired in control of tobacco worldwide through its effective implementation of the Framework Convention on Tobacco Control (FCTC), the first international public health treaty. The purpose of this letter is to offer you and the rest of the Government of Uruguay our support with respect to the lawsuit filed by the main multinational tobacco company worldwide, Philip Morris International (PMI). We are offering you our help to face this situation and we emphatically ask that you do not negotiate or give in to it. On the contrary, we urge you to ask the 169 countries that form part of the FCTC to create a mechanism to protect not only Uruguay but also the rest of the countries against similar maneuvers.

PMI has claimed that the use of a single presentation per brand (eliminating the terms “light,” “super light” and other variants), health warnings on cigarette boxes that occupy 80% of their surface and the harshness of the pictographs put their investments at risk. This lawsuit constitutes a maneuver with the objective of forcing the Government of Uruguay to negotiate and give up its right to protect the life and health of Uruguayans. They want to obviate the fact that these measures are supported by the FCTC and their constitutionality is sanctioned by Uruguay’s Supreme Court of Justice.

The tobacco industry has been unable to file suit under international trade agreements, since these agreements, like the WTO Agreement on Technical Barriers to Trade, give great discretion to the State to protect the health of its citizens. PMI had no other option than to turn to the International Center for Settlement of Investment Disputes (ICSID), an identity affiliated with the World Bank, claiming that the policies listed in the lawsuit violate the Switzerland-Uruguay Bilateral Investment Treaty. PMI’s strategy is clearly not to contest the validity of the tobacco control policies but rather to use a bilateral treaty as a pressure mechanism to force the Uruguayan Government to change laws, given the alternative of the State suffering “the potential economic risk” if the case were to be tried.

Uruguay is not the only country implementing this kind of initiative. The Government of Australia recently approved the implementation of plain packaging, which goes further than Uruguay’s current measure and is the gold standard promoted by the Guidelines of Article 11 of the FCTC toward which countries will tend to evolve. The Congress of Honduras also just approved health warnings that cover 80% of the package, following Uruguay’s example. Brazil has been a pioneer in the use of harsh pictograms and, as a result, it has managed to reduce smoking rates from 34% to 17% nationwide.

PMI’s choice of Uruguay for filing this lawsuit has been highly strategic. PMI’s success in setting back the progress of Uruguay, the country recognized worldwide as the leader in tobacco control, will cause serious harm to the FCTC, of which 169 sovereign States form part. What is more, they have done in it in the year in which the Fourth Conference of the Parties (COP 4), the governing body of the FCTC, is being held in Punta del Este We are particularly concerned for the message that PMI is sending to the poorest countries, which could be intimidated from implementing effective tobacco control measures on account of the fear of also falling victims to the display of power made by the tobacco multinational with Uruguay.

Instead of giving in to PMI, the Government of Uruguay can strategically use the COP 4, since this meeting of the 169 States parties to the FCTC is the platform created by the FCTC for you to claim your right to protect the health of your citizens and reject all attempts at pressure and manipulation on the part of PMI and other multinational tobacco companies. According to Article 5.3 of the FCTC and its Guideline, “In setting and implementing their public health policies with respect to tobacco control, Parties shall act to protect these policies from commercial and other vested interests of the tobacco industry in accordance with national law.”

The COP presents an opportunity for the Government of Uruguay to make a formal request for the 169 States to create a mechanism and develop a strategy that protects not only Uruguay but also the rest of the countries against similar maneuvers. We can assure you that we are committed to seeking out support for you from among the countries for this initiative.

To speak in greater detail about this letter and ways to support your government, you can contact Laurent Hubert [huberl@fctc.org], Director of the Framework Convention Alliance, at + 1 202 289 7155.

We hope to be able to count on your leadership,

Cordially,
 

Laurent Huber
Director
Framework Convention Alliance  (FCA)

Matt Myers
President
Campaign for Tobacco-Free Kids

Gigi Kellett
Director, Campaign Challenging Big Tobacco
Corporate Accountability International

 
Ehsan Latif
Tobacco Control Director
International Union against Tuberculosis and Lung Disease