[Intl-tobacco] Indonesia Fumes Over Possible US Kretek Ban

[rob@essential.org]

Note that if such a ban was enacted by Congress, it would be subject to
challenge under WTO rules. ...


Indonesia Fumes Over Possible US Kretek Ban
February 7, 2004 01:05 AM,=A0

Laksamana.Net

The Industry and Trade Ministry says US Congress is considering a bill that
would ban imports of Indonesia=B9s distinctive kretek (clove flavored)
cigarettes, which have become a fad among American youths.

Director general for industry and trade cooperation Pos M. Hutabarat was on
Friday (7/2/04) quoted by Asia Pulse as saying Indonesia could lose $20
million to $30 million worth of annual kretek imports to the US if the bill
is passed into law.

He said approval of the bill would be a major blow to Indonesia=B9s
labor-intensive cigarette industry.

Hutabarat met earlier this week in Jakarta with the visiting US Commerce
Department=B9s assistant secretary of commerce for market access and
compliance William H. Lash III.

Following the meeting, he said the Industry and Trade Ministry would lobby
the US government to drop the bill.

But Lash reportedly expressed doubt that lobbying would deter Congress from
enacting the bill.

US Congress=B9 website makes no mention of any bill to ban kretek imports, =
but
Congress is considering several bills aimed stopping the sale of cigarettes
to minors and preventing distributors from selling to children over the
internet.

Numerous US-based tobacco distributors offer cigarettes over the internet.
According to Congress, American minors illegally purchase 256,000,000 packs
of cigarettes every year.

Indonesian kreteks, Indian bidis and herbal cigarettes have become hugely
popular among many American teens over the past decade, prompting some
states to outlaw sales of clove cigarettes =AD which contain more than twic=
e
the level of tar than regular cigarettes.

Nevada and New Mexico have banned kretek imports, but in Florida a judge
ruled that a ban on the cigarettes was unconstitutional.

Despite the fact that kreteks are killers, some merchants in the US have
promoted them as =B3healthy=B2 cigarettes. One online vendor of clove cigar=
ettes
has the slogan: "Gotta smoke? Smoke smart!"

Indonesia is widely regarded as a paradise for cigarette smokers =AD due to
cheap prices and a weak anti-smoking lobby.

The Finance Ministry last month froze excise tax increases on cigarettes fo=
r
2004 to encourage the nation=B9s cigarette manufacturers to raise annual
production to at least 200 billion sticks.

Last year the government reportedly reaped Rp26.3 trillion ($3.1 billion)
from cigarette sales, just short of its target of Rp27 billion. That
shortfall was the reason given for the excise tax freeze, but anti-smoking
activists say the real reason is that the government is seeking funding fro=
m
the tobacco industry ahead of this year=B9s elections.