International Cooperation Can Save Lives and Billions of Dollars

Source from:  dailynews.lk Manjari Peiris  10/21/2008

Tobacco kills more people than the other major reasons such as AIDS, other legal and illegal drugs, road accidents, murder and suicide cause death. At present around five million people worldwide die each year from tobacco related causes, including cancer, heart disease and respiratory diseases. The World Health Organisation estimates that by 2025 the annual number of deaths resulting from tobacco will almost double. Of the approximately ten million deaths per year by 2030, an estimated three million will occur in the developed world and seven million in developing countries. It is proven that one of the effective methods of reducing tobacco consumption is taxation through increase of prices of tobacco products. A 10% increase in price on a packet of cigarettes is likely to reduce tobacco consumption by about 4% in high-income countries and by about 8% in low and middle income countries. The illicit trade in tobacco products is a major international problem that requires an international solution - to reduce tobacco use and save lives, combat organised crime and recoup billions in lost Government revenue. The illicit tobacco trade refers primarily to the smuggling, counterfeiting and other illegal manufacturing of tobacco products, as well as bootlegging. In fact, cigarettes are the world's most widely smuggled legal consumer product. It was estimated that in 2006 illicit trade accounted for 10.7 percent of global cigarette sales, or about 600 billion cigarettes. Illicit trade contributes to increase of tobacco consumption - and higher rates of tobacco-related disease and death - by making tobacco products available more cheaply, which particularly encourages price-sensitive young people. It circumvents public policies to reduce tobacco use, especially high tobacco taxation policy, which evidence shows is one of the most effective ways to reduce tobacco consumption. Illicit trade in tobacco products also deprives Governments of billions in tax revenue each year and poses a significant threat to the maintenance of law and order, and to international security. There is evidence that the illicit tobacco trade is carried out by transnational criminal groups and that money gained through illicit trade has been used for other serious criminal enterprises, including terrorist operations. There is considerable evidence that tobacco producers themselves assist wholesale smuggling in transporting tobacco products. Much of the organised criminal smuggling that accounts for the vast majority of cigarette smuggling worldwide has occurred with the knowledge of the major cigarette companies themselves and would not occur without their compliance. Cigarette company documents do not use the term "smuggling", but instead use euphemisms or code words for the activities whose meaning is clear. Smuggling has been an integral part of the business activities of global cigarette companies... these actions expand their markets and help them gain a competitive advantage over other cigarette companies. It has also been used by the cigarette companies to gain political leverage to persuade Governments to reduce cigarette tax rates or duty fees. Recent data from tobacco industry documents show that roughly a third of all exported cigarettes worldwide continue to be diverted into smuggling supply lines with major international brands continuing to dominate. Illicit trade in tobacco products is a transnational problem that cannot be effectively addressed without international cooperation and action. Recognising this fact, more than 150 States Parties to the WHO Framework Convention on Tobacco Control (FCTC) met in February 2008 to launch negotiations on an international treaty to combat the illicit trade in tobacco products. The illicit trade treaty is being negotiated as a supplementary treaty, or protocol, to FCTC, which became international law in February 2005. The WHO FCTC obligates States Parties to implement effective measures to reduce tobacco use, including high tobacco taxes, strong health warnings, and laws requiring smoke-free workplaces and public places, and comprehensive bans on tobacco advertising, promotion and sponsorship. Enditem