tobacco suits in Guatemala

[Robert Weissman <rob@essential.org>]

               Guatemala Studying Suit Against
               Two Tobacco Giants

               Reuters
               23-APR-98
               By Fiona Ortiz 

               GUATEMALA CITY, April 23 (Reuters) - Guatemala is studying
suing two
               giant tobacco firms for the millions of dollars it costs to
treat people with
               smoking-related diseases, officials said on Thursday. 

               A handful of other countries -- including Costa Rica, Great
Britain, Brazil, Israel,
               and Belgium -- are contemplating similar suits which could
mean huge legal bills
               for the embattled multinational tobacco industry. 

               "We are in a preliminary phase, an investigation of possible
damages suffered by
               the Guatemalan government in paying for medical attention for
people affected
               by using tobacco products," Fernando Santos, chief of the
consulting section of
               the Guatemalan Attorney General's Office, said. 

               Santos told Reuters the Guatemalan government had contracted
Houston,
               Texas, law firm Fleming Hovenkamp & Grayson to do the study,
which could
               be completed within two months. 

               The suit, if pursued, would be filed in a U.S. court. Tobacco
companies have
               already been sued for billions of dollars in the United States. 

               In a faxed statement, Attorney General Acisclo Valladares
said the idea was to
               follow U.S. examples. 

               "This kind of suit, by individuals, and more importantly by
states, has been
               successful in the United States," he said. 

               Guatemala would bring suit against the foreign owners of the
two companies that
               sell cigarettes in Guatemala -- B.A.T. Industries Plc, which
owns Guatemala's
               Tabacalera Nacional, and Philip Morris Companies Inc., which owns
               Tabacalera Centroamericana (Tacasa). 

               "The only thing we know is what we have seen in the
newspapers," Luis Gomez,
               director of corporate relations for Tabacalera Nacional,
which has 34 percent of
               the Guatemalan cigarette market, told Reuters. 

               Tabacalera Nacional sends Guatemala-grown tobacco to Honduras to
               manufacture Free, Lucky Strike, Casino, Belmont and Payasos
brand cigarettes
               which are sent back here for sale. 

               Tacasa dominates 65 percent of the market with Marlboro and
other brands
               made in Guatemala. Imported cigarettes account for one
percent of the market. 

               The tobacco crop is a fairly important industry in Guatemala,
representing $21.3
               million worth of exports to countries outside of Central
America in 1996. 

               The Guatemalan government has not had a prominent
anti-smoking campaign.
               Smoking is permitted on buses, in theaters and in government
offices. Minors
               smoke legally. Warnings on cigarette packs are small and not
given in Indian
               languages spoken by many Guatemalans. Radio and television
ads for cigarettes
               are common. 

               Also, smoking is cheap -- a pack of 20 cigarettes costs about
$.85 including tax.

                            Copyright 1998 Reuters Limited.All rights reserved.