[Intl-tobacco] EU To Sue U.S. Tobacco Companies, Alleging They Allow Cigarette Smuggling (fwd)

[Robert Weissman]

EU To Sue U.S. Tobacco Companies, Alleging They Allow Cigarette Smuggling
by Adrian Cox
Source: Bloomberg News, Wednesday, 7/19/00

Brussels, July 19 (Bloomberg) -- The European Commission is set to sue a
number of U.S. tobacco companies, alleging they allow cigarette smuggling,
which costs about 2 billion euros ($1.8 billion) in lost tax annually, a
spokesman said.

The commission will take the unidentified companies to U.S. courts ``based
on evidence that they are complicit in the smuggling,'' spokesman Luc
Veron said.  It will be the first time the commission has started civil
action of this sort in the U.S.

``We are pretty confident that we have a good case,'' Veron said, adding
that the commission, the European Union's executive arm, will have to
contract a law firm on a no win, no fee basis.

The EU already is targeting tobacco smuggling with stiffer border controls
and increased customs cooperation with third countries, Veron said. Almost
30 percent of Europeans are regular smokers.