Brussels, 27/11/2015 (Agence Europe) - The European Commission is expected to decide before the end of the year whether or not to renew the agreement concluded with Philip Morris in 2004 on tackling contraband and counterfeiting.
The EU works with four major tobacco producing companies to address smuggling and counterfeiting of cigarettes within its borders. The “Big Four” as they are known are Philip Morris International, Inc. (PMI), Japan Tobacco International (JTI), British American Tobacco (BAT) and Imperial Tobacco Limited (ITL). Under the terms of their agreements, the companies make annual payments to the member states of the EU (through the European anti-fraud office) to help them tackle contraband and counterfeiting. They add a series of further payments when a significant quantity (over 50,000) of illegal cigarettes bearing their name is seized.
The Commission is currently considering whether it should extend the cooperation agreement with Philip Morris International, Inc., which is due to expire in July 2016 (2022 for JTI and 2030 for BAT and ITL). “During the summer, the Commission was in contact with the member states to ask them about their experience of implementing the tobacco agreements”, said Commission Vice-President with responsibility for the Budget and Human Resources Kristalina Georgieva, referring to a letter sent to the member states on 17 July 2015. “We have now received comments from 20 member states. We believe we have enough to incorporate that input and finalise the evaluation. We are still hopeful of finalising and publishing the evaluation during this quarter”, she added, speaking at a meeting of the Parliament's budgetary control committee in mid-October.
The commissioner provided a robust defence against criticism, including on the independence of the Commission. “We have taken a very responsible approach so as not to draw any hasty conclusions. There has been no contact with PMI in the interval.” PMI has already indicated that it would like to see the 2004 agreement extended. (Original version in French by Sophie Petitjean)