Brussels, 09/03/2016 (Agence Europe) - The European Parliament is against renewing the anti-contraband and anti-counterfeiting agreement concluded in 2004 with (PMI). It made its views known in a nonlegislative resolution adopted by a large majority during a plenary session on Wednesday 9 March.
For approximately 10 years, the European Union has been working with major tobacco producing companies to tackle contraband and counterfeit cigarettes on its territory (see EUROPE 11497). In total, four agreements have been signed with Philip Morris International (PMI), Japan Tobacco International (JTI), British American Tobacco (BAT) and Imperial Tobacco Limited (ITL) respectively. The agreement concluded with PMI includes the payment of at least $1 billion and is the first of these agreements to expire this July.
Explanation. Ahead of this deadline, the European Parliament said that they should not “renew, extend or re-negotiate the agreement beyond its current expiry date”. The resolution was prepared by the S&D, Greens/EFA and the EFDD and explains that there are doubts about the agreement's compatibility with the WHO's anti-smoking framework convention, to which the EU is a signatory. The resolution also explains that the agreement does not tackle important characteristics of the illegal tobacco trade, such as the high proportion of trade involving “cheap whites” (little-known cigarette brands such as Gold Classic and Richman, which are produced legally outside Europe and introduced onto the European markets through contraband). Subsequently, the EP resolution considers that “all elements included in the agreement with PMI will be covered by the new legal framework set up by the directive on tobacco products and the protocol (for product controls and follow-up) to the WHO framework Convention in this anti-smoking campaign”.
Approach. MEPs recognise, however, that the WHO protocol and tobacco products directive will not apply for several years (2019 for the directive and 2022-23 at the very earliest for the protocol). They are subsequently calling on the Commission to introduce, before the date of the PMI agreement's expiry, up until the application of the new European directive, “all necessary measures to ensure the follow-up and tracing of PMI tobacco products and take legal action in the event of illegal seizures of products from this manufacturer”. They are also suggesting the introduction of another regulation that “sets up an independent identification and traceability system and applies appropriate vigilance provisions (' knowing your customer') for cut shag tobacco and filters and papers used by the tobacco industry”. MEPs are also demanding that PMI continues to apply these same provisions that have up until now been included in the agreement. The Commission is also invited to present an action plan to outline new measures for urgently combating “cheap whites”.
The majority of MEPs welcomed the vote and Françoise Grossetête and Philippe Juvin from the French EPP group explained that “Parliament has managed to resist lobbying from the cigarette manufacturers”.
Philip Morris deplored the decision, however. Alvise Giustiniani, the head of PMI's anti-smuggling department stated “The current debate continues to focus on the opposition between those for and against renewing the agreement, rather than pragmatic solutions for helping eradicate the illegal trade in the EU”. He added that “as we have previously repeated, what counts most of all is continuing the control measures in the supply chain, which are contained in the agreement. These measures have helped reduce the number of counterfeit and illegal products in the EU over the past 12 years and are now an integral part of the WHO protocol, which we firmly support. It is up to the Commission and member states to decide on the future of the agreement. Whether it is renewed or not, our commitment to pursue our efforts and investment throughout the world to eradicate the illegal trade, remains intact and as robust as ever”. (Original version in French by Sophie Petitjean)