[Intl-tobacco] Save Lives on China Trade deal

[Robert Weissman]

The PNTR vote in Congress -- with a "yes" vote portending shocking
increases in tobacco-related disease and death in China -- is neck and
neck. If you live in the United States, call your representative at
1-877-722-7494 (toll free), and urge them to vote "no" on PNTR.

Robert Weissman
Essential Information			|   Internet:	rob@essential.org


May 3, 2000

William J. Clinton
The President
The White House
Washington, DC 20500

Dear Mr. President:

We are writing to express our grave concern about the tobacco 
provisions in the U.S.-China trade deal and the pending vote to 
grant China permanent normal trade relations (PNTR).   We believe 
that the deal would increase U.S. tobacco company access to the 
Chinese market, increase the companies' political influence in 
China, undermine tobacco controls in China, result in increased 
smoking rates and tobacco-related deaths. 

As you know, the agreement contains specific provisions mandating 
a reduction in tariffs on imported cigarettes, from a base rate of 65 
to 25 by January 1, 2004. It also requires China's compliance with 
the WTO's Trade-Related Investment Measures agreement, which 
prevents discrimination against imports on the basis of performance 
requirements of any kind. The agreement excludes tobacco from 
Chinese concessions on retail and distribution rights.   It is unclear 
if the tobacco category includes cigarettes.

The papers uncovered in the tobacco litigation have confirmed what 
has long been obvious: breaking into the Chinese market is a top 
priority for Philip Morris and Big Tobacco, and high tariffs on 
imported cigarettes are a major obstacle to the U.S. companies 
gaining a substantial presence in China.

The lowering of tobacco tariffs in connection with the U.S.-China 
agreement will go a long way to knock down the walls that have 
kept the U.S. companies out of China. And even if the retail and 
distribution rights do not extend to imported cigarettes -- a point 
that is not obvious to us -- the tariff reductions are dramatic in their 
own right. Moreover, the tariff reductions will give Philip Morris a 
substantial foot in the door to push for elimination on restrictions 
on its ability to do business in China.

As you know, the U.S. tobacco companies have a long and sordid 
history of entering Asian markets with U.S. government assistance. 
When the U.S. companies have entered these markets, not only 
have they gained substantial market share, but smoking rates have 
gone up. In the case of South Korea, after the entry of U.S. 
companies, smoking rates among teenage boys went from 18 to 
29 percent in a single year, according to GAO. The rate among 
girls more than quintupled, rising to 8.7 percent.   That jump in 
smoking rates was presumably due to the introduction of slick U.S. 
marketing and advertising techniques. Over the long term, we have 
seen that the introduction of these techniques leads to a 
transformation of domestic companies -- faced with competition, 
they too begin to employ similar promotional techniques.

Perhaps limitations on U.S. corporate activity, or existing Chinese 
tobacco control regulations, would prevent the jump in smoking rates 
in China from being as high as they are in Korea and elsewhere in 
Asia. But given the enormity of the Chinese market, even small up 
ticks in the smoking rate will lead to a surge in tobacco-related 
disease and death, probably on the order of hundreds of thousands 
or more.   Mr. Clinton, we know there are many factors at play on the 
PNTR issue. But we believe the public health stakes involved in the 
tobacco opening are great enough that they should override other 
considerations.

Sincerely,

Co-Chairs of SAVE LIVES, NOT TOBACCO: 
The Coalition for Accountability

Cassandra Welch, American Lung Association
Tom Bantle,  Public Citizen 
William Godshall, Smoke-Free Pennsylvania