[Intl-tobacco] Tobacco and ASEAN

[Robert Weissman]

The Korea Herald
November 27, 2001

Blow away the tobacco industry's smokescreen
By Shigeru Omi

   In an interconnected world, we're seeing ways that globalization may
help or
 hinder our lives. Take the tobacco industry: it is using innovative
means to
 bypass fledgling government tobacco control policies, particularly in
developing
 countries. It is riding a wave to open regional trade in East Asia and
the
 Pacific. Under trade agreements among the 10 member countries of the
Association
 of South East Asian Nations (ASEAN), taxes and import restrictions will
be
 markedly reduced from locally grown and regionally manufactured
products to
 increase the flow of goods, labor and wealth across borders. As a
result, the
 international tobacco industry is relocating production to ASEAN
countries to
 maximize access to countries with undeveloped tobacco control measures;
to keep
 their product prices low; and to cuddle up to some enticing markets,
including
 South East Asia and China. So why should we care? Because the human
impact of
 tobacco use is overwhelming: one person dies every 32 seconds in the
Western
 Pacific Region from tobacco-related causes. The region, home to 1.6
billion
 people, has the greatest increase in tobacco users worldwide and the
greatest
 potential for more death and disability.  Globally, if tobacco use
continues at
 current trends, 500 million people alive today will die from
tobacco-related
 causes; more than half of these people are now teenagers. To make
matters
worse,
 potential victims, many living in developing countries, will never know
what
hit
 them; they have little or no access to information on the health risks
of
 tobacco use.  In China, for example, 61 percent of smokers questioned
in 1996
 thought tobacco did them "little or no harm."

   Finding new customers in developing countries in Asia and the Pacific
is an
 attractive option for the industry, particularly as it adjusts to
shrinking
 North American and Western European markets. Take Philip Morris for
example.
The
 company recently opened a $300 million cigarette production facility in
Laguna,
 Philippines. Under an ASEAN agreement, products manufactured in member
countries
 with a high proportion of locally grown ingredients will be exempt from
excise
 taxes. For example, cigarettes now manufactured in the Philippines will
become
a
 local ASEAN product if at least 40 percent of their tobacco is from the

 Philippines. This means they will be exempt from taxation when traded
among
 other ASEAN member countries. This lowers or maintains the low cost of
 cigarettes and makes it more enticing for current and would-be smokers,

 particularly the young, to buy. For the Philippines, in the short term,
a
 tobacco production facility is built and a few hundred jobs created.
However,
in
 the long term, there are more costs than benefits to increased and
cheaper
 tobacco production and use. Tobacco users are sick more often, less
productive,
 and stand a higher risk of being disabled by respiratory ailments,
heart
disease
 and cancer caused by tobacco use; they become a chronic burden on a
nation's
 health care system. Like the smoke of a cigarette, the economic
advantage of
the
 tobacco industry is gone in a puff. According to a 1999 World Bank
report,
 "Curbing the epidemic: Governments and the economics of tobacco
control," money
 spent on tobacco purchases would generate spending and jobs in other
goods and
 services, generating jobs to replace those lost from tobacco sales - a
shift
 which would bring major health benefits without harming economies.

   The tobacco industry believes if tobacco control remains a "health
issue" it
 could influence other government stakeholders: finance, agriculture and

 industry. In the words of a recent British American Tobacco paper, one
of the
 company's main objectives is: "maintain a dialogue with key government
officials
 and ministers in order to be optimally positioned to influence their
policy."

   The truth is, tobacco threatens not only people's health but their
ability to
 contribute to social and economic development. Many governments
recognize the
 threat and are implementing measures to curb tobacco use.  However, the
tobacco
 industry appears to be trying to pre-empt government anti-tobacco
legislation
by
 asserting where and how it can manufacture its products.

   So what can we do? The answer lies in a global response: the
Framework
 Convention on Tobacco Control (FCTC). When adopted, the proposed
convention
 would become a global tobacco control tool. It would support countries
in their
 efforts to reduce tobacco consumption and the number of people dying
from
 tobacco-related causes. In November 2000, member states of the World
Health
 Organization began mapping it out. The next meeting from Nov. 22-28, in
Geneva,
 begins the process of negotiating the text. Meetings will continue
until the
 treaty is signed; the target date, May 2003. Understandably, the
tobacco
 industry is feeling the heat. Tobacco company representatives are
inviting
 themselves to participate in "dialogue sessions" with national
governments on
 tobacco control. Recently, in Mongolia, Philip Morris falsely
advertised a
 recent meeting at the Mongolian Parliament as an "official
consultation."
 Similar tactics are employed in many countries including Cambodia and
Papua New
 Guinea.

   But their strategy won't work. Instead, the international community
should
 fashion the FCTC to go after the well-lined pockets of the tobacco
industry.
 Globally, the tobacco industry stands to lose billions in tobacco sales
and
 advertising if measures outlined in the FCTC are adopted. These
measures
include
 increases in tobacco taxes, bans on advertising, and curtailing
investment
rules
 which favor the tobacco industry.

   What the tobacco industry stands to lose, low- and middle-income
countries
 stand to gain. Measures to reduce the demand of tobacco will prevent
millions
of
 premature deaths and disability, especially among the poor, who are
more likely
 to smoke than those in rich countries. Consider this: a 10% cigarette
price
 increase worldwide could persuade 40 million of the world's smokers
alive in
 1995 to quit, and could prevent at least 10 million premature
smoking-related
 deaths. The tobacco industry says it wants to help the World Health
Organization
 and its partners in health to save lives by discouraging children from
smoking
 and spending research dollars on creating a "safer" cigarette. Do you
believe
 them? I don't. They stand to lose too much if we pass the FCTC-a good
reason
for
 countries to show their support for it.

   Shigeru Omi is regional director of the World Health Organization's
western
 Pacific region. - Ed.