[Intl-tobacco] Japan Tobacco threatens WTO challenge against EU

[Robert Weissman]

The Japan Times: Sept. 3, 2000
(C) All rights reserved 

EU rules may shut JT cigarette brands out 

Japan Tobacco Inc. is concerned over proposed European Union rules against
the use of words such as "mild" and "light" on tobacco packaging, which
would exclude two of JT's most popular brands, Mild Seven and Mild Seven
Lights, from the 15-nation EU market.

The former Japanese tobacco monopoly has been in close contact with the
Foreign Ministry and the Finance Ministry, which has jurisdiction over the
tobacco industry, with a view to trying to block enactment of the new EU
rules, according to JT officials.

But both ministries are largely trying to distance themselves from
involvement in the case for fear that any attempt to protect the tobacco
industry could trigger an outcry by antismoking groups, although some have
claimed the rules violate those laid down by the World Trade Organization.

"The rules would violate WTO rules, so if they are enacted, we should take
the case to the WTO," a senior Foreign Ministry official said.

JT is gearing up its efforts to expand into the EU market following its
acquisition of RJR Nabisco Holdings Corp.'s international tobacco business
last year.

JT officials said the fate of the proposed EU rules is expected to become
clear early next year. "We are watching developments closely," one JT
official said.