Brussels, 25/02/2016 (Agence Europe) - The majority of MEPs are against the renewed agreement concluded with Philip Morris (PMI) that seeks to tackle contraband and counterfeit cigarettes. Their speeches at the plenary session on Thursday 25 February demonstrate that they are not convinced by the evaluation published by the Commission in this connection.
Bart Staes (Greens/EFA, Belgium) stated “Mme Commissioner, let's not pretend that the tobacco industry is our friend. It is against the European directive on tobacco products and has not hesitated to oppose it in court. Instead of renewing the PMI agreement, we should do everything in our power to speed up implementation and respect for the tobacco directive”.
The EU is collaborating with major tobacco producing companies in the fight against contraband and counterfeit cigarettes in EU territory (see EUROPE 11497). In total, four agreements have been signed respectively with Philip Morris International (PMI), Japan Tobacco International (JTI), British American Tobacco (BAT) and Imperial Tobacco Limited (ITL). These four texts impose a number of obligations on tobacco manufacturers that include the introduction of product inspection and follow-up protocols and sales restrictions based on legitimate demand. They also include the payment of substantial sums of money from the tobacco manufacturers (a minimum of €2.3 billion until 2029).
For almost a year, the European Commission has been looking at the idea of launching negotiations with Philip Morris in order to renew the specific agreement that expires on 9 July. In this context, MEPs decided to present an oral question to the Commission in an effort to establish its future intentions and an evaluation of the agreement with PMI. Ahead of the plenary debate, they appeared to get what they wanted: the European Commission sent them a 30 page document on the costs and benefits of the agreement: http://ec.europa.eu/anti_fraud/documents/cigarette_smug/technical_assessment_pmi_24022016_en.pdf ).
According to the Commission, “The evidence would suggest that even if no link can be established between the cause and direct effect, the agreement with PMI has attained its objectives by reducing contraband on the illegal tobacco market in the EU, as witnessed by an 85% fall in volume of genuine PMI cigarettes intercepted by member states between 2006 and 2014”. It adds that “At the same time, the reduction in contraband has not led to a global reduction in illicit products on the European market. In other words, the traffickers have found other products and other ways of smuggling them into the European market”.
José Bové (Greens/EFA, France) complained that “It is deplorable that we have had to wait a year and a half to receive this report… When a student could have done better in six months”.
During the debate, the majority of MEPs opposed the renewed agreement with PMI. A single MEP from the Northern League, Gianluca Buonanno, adopted a position against. The President of Budget Control Committee Ingeborg Graessle (EPP, Germany), decided to compromise and suggested maintaining the agreement with the PMI, “until the tobacco directive and WHO protocol enter into force… On the condition that the extension does not undermine ratification of the protocol by the EU”.
It should be pointed out that the “tobacco” directive calls for the introduction of a traceability and follow-up system by 2019 (see EUROPE 11027), while the WHO protocol for eradicating illicit tobacco products includes international level provisions that will at best apply in 2022.
In an opinion published a few days ago, the Director of the WHO's Framework Convention on Tobacco Control (FCTC), Vera Luiza da Costa e Silva, compared the agreement concluded by the EU with PMI as a farmer asking a fox to find a solution to why his chickens are disappearing. She said that the EU was in danger of breaching its obligations as a signatory party to the FCTC if it renewed its agreement with PMI.
The Commissioner for the Budget, Kristalina Georgieva, indicated that she would make her decision known over the next few weeks, “We need a binding instrument to fight against contraband cigarettes until the 'tobacco' directive and FCTC protocol become binding”. According to one well-informed source, she is expected to speak on this matter next week. The EP will adopt a specific resolution during the March plenary session. (Original version in French by Sophie Petitjean)