[Intl-tobacco] Philip Morris threatens to quit Swiss HQ

[Robert Weissman]

Philip Morris threatens to quit Swiss HQ
AFP
April 4, 2004

US tobacco giant Philip Morris has threatened to abandon its international
headquarters in Switzerland if the country does not back down on plans to
toughen its cigarette manufacture rules. "If we can no longer produce in
Switzerland, we will go elsewhere," Philip Morris International chief
executive Andre Calantzopoulos told the Swiss French-language daily Le
Temps.

Philip Morris, which is owned by the parent company Altria, is the
producer of the world's best-selling cigarettes, Marlboro, and 24 other
top global brands. It has based its international headquarters in Lausanne
since 1964. Switzerland has drafted a reform to its tobacco laws in line
with European Union rules, which would lower the accepted levels of tar
and nicotine in cigarettes produced in Switzerland and exported outside
the EU.

Mr Calantzopoulos says the reduced levels would not be a problem for
cigarettes made and sold in Switzerland, but for those exported outside
the country. "Our factory is very heavily export-oriented", he said.

He approves taxes imposed on cigarettes to pay for public health costs
associated with smoking, saying that "levying a tax helps to reduce the
hazardous effects of smoking to health". "In principle, I cannot argue
(against it)."

However, he warns that higher cigarette prices could lead to trafficking
and counterfeit and lead to "loss of state tax revenue". Mr Calantzopoulos
says his company is pursuing "excellent dialogue" with the Swiss
Government.