[Intl-tobacco] Argentina and tobacco firms in anti-smuggling move (fwd)

[Robert Weissman]

Argentina and tobacco firms in anti-smuggling move
Source: Reuters, Friday, 6/16/00

Friday June 16, 6:35 pm Eastern Time

BUENOS AIRES, June 16 (Reuters) - Argentina reached an agreement with the
country's tobacco companies to suspend exports to bordering nations in an
effort to curb cigarette smuggling, the Economy Minister said on Friday.

``We have an agreement with the companies so that they don't export to
bordering countries,'' Economy Minister Jose Luis Machinea said at a press
conference.

He said the move hoped to stop cigarettes exported abroad be illegally
smuggled back into the country. According to Machinea, the move could
increase tax collection by $200 million.

Machinea did not give any more details.

Argentina's tobacco market is largely controlled by units of British
American Tobacco (quote from Yahoo! UK & Ireland: BATS.L) and Philip
Morris (NYSE:MO - news).

The Argentine government receives about $2 billion in taxes from tobacco a
year but industry executive have said the government also loses about $230
million a year due to cigarette smuggling.