01 Feb 2008
The EU has signed Agreements with two tobacco manufacturers on illicit trade in cigarettes, covering both smuggled and counterfeit cigarettes, firstly in 2004 with Philip Morris International (PMI), and secondly at the end of 2007 with Japan Tobacco International (JTI).
This fact sheet was drafted by The Framework Convention Alliance to answer queries raised about the status and content of these Agreements. The answers are derived from an analysis of the content of the detailed Agreements which can be found on the web.
The question addressed in the fact sheet are;
- How did the Agreements between the EU and the tobacco companies, PMI and JTI, come about?
- What are the key elements of the Agreements?
- Do the Agreements mean that the companies and their executives are immune from any more litigation so that they can no longer be taken to court for any smuggling, fraud, tax evasion or money laundering activities?
- How should these agreements be viewed in light of Article 5.3 of the FCTC?
- What is the difference in legal status between these Agreements and the Memoranda of Understanding British American Tobacco has negotiated and signed with numerous governments?
- Which parts of the Agreements might be useful precedents for a protocol on illicit trade?
- When are PMI and JTI required to make seizure payments under the Agreements?
- If the EU has these Agreements why would it want an illicit trade protocol?