The World Health Organization (WHO) African Region (AFRO) covers 47 countries.¹ Of these, 44 countries ² are Parties to the WHO Framework Convention on Tobacco Control, 20 countries have ratified the Protocol to Eliminate Illicit Trade in Tobacco Products.³

Smoking in AFRO Region

Smoking prevalence in the AFRO region remains the lowest among all WHO regions (an average prevalence rate of 18.5% in 2020) and this rate is narrowing towards 11.2% in 2025. According to the AFRO region WHO office, countries in the African Region are experiencing an increasing rate of tobacco use. The fast growth of the population in Africa and an increase in consumer purchasing power is leading to larger and more accessible markets. ³ The Tobacco Atlas has also documented a significant increase in smoking prevalence in some African countries too, over the last few years, notably Congo, Lesotho, Niger and Mauritania. ⁴

As the Tobacco Atlas stated in 2018: “With its rapidly-growing populations and rising life expectancy, an increase in the number of smokers along with population aging is likely to make Africa suffer the most from future smoking-related burden.”⁵

Adult daily smoking prevalence

Source: World Health Organization report on the global tobacco epidemic 2021 ⁶

Tobacco Production in AFRO

From 2012 to 2018, the area under tobacco cultivation decreased globally by 15.66%, whilst on the African continent it increased by 3.40%⁷. East Africa alone accounts for 90.43% of tobacco leaf production in Africa. ⁷ The member states of the WHO African Region account for 18.2% of the global area under tobacco cultivation and 11.4% of tobacco leaf growing in the world. The five top tobacco growing countries are: Zimbabwe (25.9% of total output), Zambia (16.4%), United Republic of Tanzania (14.4%), Malawi (13.3%) and Mozambique (12.9%).⁷ Other countries have small tobacco growing areas, usually for local consumption.

Who dominates the market?

In the AFRO region, the main production hubs are located in Algeria, Kenya, Nigeria and South Africa. In 2018, South Africa was the leading cigarette producer in the Afro region ⁸

Transnational Tobacco Companies (TTCs)

Major tobacco manufacturers include British American Tobacco (BAT), Imperial Brands, Philip Morris International (PMI), and Japan Tobacco International (JTI). For years, BAT has had the largest market share in two-thirds of countries across Africa, and a virtual monopoly in a number of these, including 51.7% in Uganda,78.8% in Kenya,71.4% in South Africa and 79% in Nigeria. ⁹

As of the fourth quarter 2021, BAT had production facilities in Kenya, Nigeria, South Africa and Zimbabwe, while PMI had such facilities in Algeria, Senegal and South Africa. JTI on the other hand, was present in Ethiopia, Malawi, Nigeria, South Africa, Tanzania and Zambia.

Other than its representations in Cote d’Ivoire and South Africa, Imperial Brands had a more subtle presence in Africa, through affiliates in countries like Cote d’Ivoire (Société ivoirienne de tabac – SITAB), Central African Republic (Société centrafricaine de cigarettes – SOCACIG), Burkina Faso (Manufacture burkinabe de cigarettes – MABUCIG), Chad (Manufacture des cigarettes du Tchad), Senegal (Manufacture des tabacs de l’Ouest Africain – MTOA), Madagascar (Société anonyme de cigarettes mélia à Madagascar – SACIMEM SA) and Mali (Société nationale de tabacs et allumettes du Mali – SONATAM).¹⁰

 Other tobacco companies

Several countries, including Botswana, South Africa, Zimbabwe, Kenya, Angola, Mozambique, Malawi, Zambia, Seychelles, Uganda, Ethiopia, and Cape Verde have privately own companies.⁸

Roadmap to tobacco control

Few African countries meet the standards of the individual WHO FCTC articles with regard to comprehensive implementation. Africa has lower rates of tobacco taxation, weaker smoke-free policies and fewer restrictions on tobacco advertising compared with other world regions.¹¹ However, the WHO report on the global tobacco epidemic 2021 highlighted the progress on WHO FCTC implementation from Ethiopia, Nigeria, Côte d’Ivoire, Niger, Madagascar, among others, especially on adopting smoke-free laws, large graphic pack warnings and introducing comprehensive bans on tobacco advertising, promotion and sponsorship, including at point-of-sale. ⁶

Up to date information on tobacco control legislation around the world can be found on the Tobacco Control Laws website (published by the Campaign for Tobacco Free Kids). You can search litigation by country, tobacco control measure, or type of legal action. The website also contains analysis and assessment of FCTC compliance, and policy factsheets. Parties to the WHO FCTC submit regular FCTC COP reports detailing their progress in implementing the treaty, which are presented in the FCTC Implementation database. Further information on countries’ progress in implementing the WHO recommended MPOWER measures can be found in the WHO reports on the global tobacco epidemic, a serious of biennial reports detailing status and compliance.

Industry Interference

In Africa, the tobacco industry has a history of using several tactics to interfere in tobacco control and to delay legislation. Major interference tactics include amongst others, Corporate Social Responsibility (CSR) activities, lobbying, litigation, the use of third parties, alleged bribery and espionage, and using arguments on illicit trade as well as unnecessary interactions with governments ¹²

Extensive research published in 2021 by the Tobacco Control Research Group at the University of Bath, a partner in STOP, in conjunction with BBC’s Panorama, The Bureau of Investigative Journalism as well as the Organized Crime and Corruption Reporting Project uncovered multiple instances of British American Tobacco seeking to frustrate tobacco control measures and undermine competitors in Africa. For more details visit The BAT Files on TobaccoTactics.

Examples of tobacco industry interference include British American Tobacco (BAT) sending a letter to the Minister of Trade in Uganda in 2020,  to share inputs on the draft tobacco control regulations received from the said Minister’s office. However, this document was the official custody of the Ministry or Health, meaning that an informant at the Ministry of Trade had provided the document to BAT.¹³

In 2017, in Ethiopia, during the privatization process of National Tobacco Enterprise (NTE), an agreement was undertaken between Japan Tobacco International (JTI), the majority shareholder of the NTE and the Government, which allowed JTI to comment before any tobacco-related law was processed. Due to this, the tobacco industry has been able to exert pressure on public health laws. ¹⁴

Evidence also suggests that the tobacco industry has interfered with policy development in Nigeria: prior to the approval of the National Tobacco Control Regulation 2019, the industry submitted memoranda, made submissions and sent a delegation to the public hearing at the National Assembly.¹⁵

Litigation

The tobacco industry also has a history of employing legal challenges to intimidate African governments and tobacco control stakeholders in order to either stall the adoption or implementation of a tobacco control policy, or to weaken it. In Kenya and Uganda, for example, British American Tobacco (BAT) has used litigation to attempt to block government attempts to adopt regulations that limit the harm caused by smoking. BAT and other multinational tobacco companies have also sent threatening letters to governments in Namibia, Togo, Gabon, Democratic Republic of Congo, Ethiopia and Burkina Faso accusing them of breaching their own laws and international trade agreements and warning of damage to the economy.¹⁶

 Third parties and tobacco industry allies.

The tobacco industry has used  front groups, allies and third parties to serve its interests. A study published in September 2021 in Nigeria¹⁷, Uganda¹⁸ and Zambia¹⁹ by the African Tobacco Control Alliance (ATCA) and local partners, documented a series of instances where tobacco multinationals used intermediaries to foster their efforts to undermine implementation of the WHO FCTC. For example, in June 2019, the Chamber of Commerce and Industry of Zambia (ZACCI) made a series of presentations to ministries opposing measures proposed in the Zambia Tobacco and Nicotine Products Control Bill 2018. British American Tobacco is one of the corporate members of ZACCI. ¹⁹

Corporate Social Responsibility (CSR) activities

The tobacco industry uses CSR as a strategy to build support for policy positions that favour tobacco industry interests, weaken opposition and improve its reputation. There are several cases of tobacco industry CSR activities in the African continent, but the most recent wave of such activities are donations to “support” COVID-19 response efforts in Uganda²⁰ and Zambia²¹ amongst other countries. For more examples on CSR during the COVID 19 Pandemic, go to the COVID-19 monitoring database on Tobacco Tactics.

Tobacco Tactics Resources

• The BAT Files
• Zambia
• United Republic of Tanzania
• Malawi
• Comoros
• South Africa
• Democratic Republic of Congo
• Kenya
• Burundi
• Sudan
• South Sudan
• Rwanda
• Ghana
• Uganda

References

The post African region appeared first on TobaccoTactics.

The Western Pacific region includes 37 countries and territories and hosts nearly 1.9 billion people. ²²  The countries are Australia, Brunei Darussalam, Cambodia, China, Cook Islands, Fiji, Japan, Kiribati, Lao People’s Democratic Republic, Malaysia, Marshall Islands, Federated States of Micronesia (Micronesia), Mongolia, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Philippines, Republic of Korea (Korea), Samoa, Singapore, Solomon Islands, Tonga, Tuvalu, Vanuatu and Viet Nam.²³²² China, the largest country in the region, hosting 73% of its total population (1.39 billion), is home to approximately 20% of the world’s population.²⁴²⁵

Eleven countries (Nauru, Tuvalu, Marshall Islands, Palau, Micronesia (Federated States of), Singapore, Tonga, Kiribati, Samoa, Vanuatu and Fiji) in the WPR are among the 50 smallest countries in the world. ²⁶

Smoking in WPR

According to the WHO tobacco trends report, the prevalence of tobacco use reported in WPR in 2020 was 25.7% and it was the second highest prevalence following the South East Asian region (SEAR).²⁷

In 2020, the average prevalence of tobacco use among males and females reported were 47.9% and 3.6% respectively. Compared to other regions, male’s prevalence rate is the highest of a region, and the female prevalence rate was the lowest. ²⁷

The global highest prevalence of smoking among people aged >15years reported in 2020 in the WPR and it was 23.3% (384 million people). The average smoking prevalence among males and females reported in 2020 were 44% (361 million) and 2.6% (23 million) respectively.²⁷

According to the WHO estimates, the tobacco smoking prevalence across different countries in the region varies from 14.1% in Australia to 52% in Kiribati. The highest tobacco smoking prevalence among males was recorded in Kiribati (68.6%) and the lowest was recorded in Australia and New Zealand (16.1%). Among the female population, the highest and lowest prevalence of smoking was recorded in Nauru (46%) in Malaysia (1%) respectively.²⁷

With regards to the number of smokers aged >15years in the region, China records the highest with 306.2 million, which accounts for nearly 80% of total smokers in the WPR (386.5 million).²⁷

Tobacco Production in WPR

China is the largest tobacco producer in the WPR as well as in the world, with a production of 2.61 million metric tons in 2019.²⁸It accounts for nearly 40% of world’s tobacco production in 2019.²⁹

According to the Taxation office of the Australian Government, a license is required to grow and/ or manufacture tobacco in Australia; and there have been no license holders since 2006. ³⁰

Brunei Darussalam, Cook Islands, Kiribati, Marshall Islands, Micronesia, Mongolia, New Zealand, Niue, Palau, Samoa, Singapore, and Tuvalu do not grow tobacco. ³¹In Solomon Islands and in Vanuatu, tobacco is growing small scale for personal use and sales. ³¹

Table 1:  Summary of farming and production of tobacco in the WPR ³²³³

*Information not available for Nauru and Papua New Guinea. Tobacco production, cultivation and cigarette manufacturing is not reported in Brunei Darussalam, Cook Islands, Marshall Islands, Micronesia, Niue, Samoa, Singapore and Tuvalu.

**N/A = Information Not available

Who dominates the market?

The tobacco products that destroy so many people’s lives are the result of the activities of a number of companies around the world. The Tobacco Supply Chain Database enables tobacco control researchers and advocates to understand what the supply chain is, where it is located and who is involved. For more information, access the database here.

British American Tobacco (BAT) dominated the Australian and Malaysian markets with 47.6% and 68% of the market shares respectively. ³⁴³⁵Philip Morris International dominates the cigarette market in Philippines (70.5%)and Singapore (47%) ³⁶³⁷

The state owned tobacco monopoly in China (China National Tobacco Corporation (CNTC)) and in Japan(Japan Tobacco International (JTI)) lead the cigarettes market in the respective counties.³⁸³⁹In Lao, 72.3% of the tobacco market is owned by the Lao Tobacco Limited (LTL) since 2001, with placed joint venture with the government.⁴⁰

Local companies dominate in certain other countries, too, in the WPR: The Mongol Tobacco company (40%) in Mongolia, The Korea Tomorrow & Global Corporation (KT&G) (63.1% ) in  Korea,  and the Vietnam National Tobacco Corporation (VINATABA) (60.5% )in Viet Nam.⁴¹⁴²⁴³

Table 2: Countries with the most sold cigarette brand owned by an international/ multinational company.^{444535414246474849505152}

*Only countries in which data is available are mentioned in the table.

Presence of Transnational Tobacco Companies (TTCs)

Table 3 summarises the presence of ‘big tobacco’, the transnational tobacco companies (TTCs), in WPR. These companies are present in the region by way of having either manufacturing facilities, full/partial ownership in local entities or distribution rights. Philip Morris International (PMI), British American Tobacco (BAT), Imperial Brands and Japan Tobacco International (JTI) are present in the WPR. BAT is present in fifteen countries in the region, followed by PMI in twelve, Imperial brands in eleven and JTI in nine (Table 3). The presences of all four ‘big’ TTCs are seen in eight countries in the region, namely, Cambodia, China, Japan, Malaysia, Mongolia, Philippines, Singapore and Vietnam. Though tobacco cultivation and cigarettes manufacturing is absent in Mongolia and Singapore, the presence of all four TTCs in these countries is notable.

Table 3: Presence of ‘big’ transnational tobacco companies in WPR ^5354555643

*Presence of transnationals are not formally reported in Brunei Darussalam, Cook Islands, Kiribati, Marshall Islands, Micronesia (Fed. Sts), Nauru, Niue, Palau, Solomon Islands, Tonga, Tuvalu and Vanuatu.

Links to government

Tobacco industry recruits retired higher ranking government officials aiming to facilitate the lobbying process. There are examples in WPR of senior government officials taking up leadership positions in tobacco companies, highlighting the ‘revolving door´phenomenon. As of 2021, Yasutake Tango, who served as the Director General of Financial Bureau, Ministry of Finance, Deputy Vice Minister and Special Advisor to the Cabinet in Japan, is the Chairman of JTI. ⁵⁷Similar incidents were reported from Malaysia and Vietnam.⁵⁸

In Malaysia, the new Chairman of BAT Malaysia appointed in January 2017 was the former Secretary General of the Ministry of Home Affairs. He is active in service to sports as the Trustee and Chairman of the Football Association of Malaysia.⁵⁹

*Please see our page on TPD: Revolving Door Cases for more information on similar cases in the world.

There are state owned tobacco enterprises in the region such as the State Tobacco Monopoly Administration (STMA) in China who owns China National Tobacco Corporation (CNTC), and Vietnam National Tobacco Corporation (Vinataba) in Vietnam. The government of Japan holds 33% of the shares of Japan Tobacco Group and the government of Lao PDR maintains a joint venture with Imperial brands (Lao Tobacco Limited). ^{57 58}

 Participation of Industry on Policy/Decision Making Processes

The Tobacco Regulation Act 2003 in Philippines allowed a seat for an industry representative in the Inter-Agency Committee -Tobacco (IAC-T), established to implement the act. Representatives of the tobacco industry including Philippine Tobacco Institute (PTI), a retailers’ association and a farmers’ group were invited as resource persons for the Committee to discuss increasing tobacco taxes in 2018to the House of Representatives.⁵⁷National Kenaf and Tobacco Board (LKTN) and Border Security Agency (AKSEM) in Malaysia, which are responsible for licensing tobacco retailers and enforcement activities on illicit trade respectively, are represented by the JTI.⁵⁸ Active interference from the industry in developing national policies and tobacco control measures were reported from China, Japan, Lao PDR and Vietnam.⁵⁷⁵⁸

Lobbying government officials

A report published by the Health Justice Philippines illustrated the role of industry in influencing the policy formation for Electronic Nicotine Delivery System (ENDS). The Joint Committees of Health and Trade at the House of Representatives proposed nine bills related to ENDS. Six out of nine bills proposed were oriented to adopting ENDS; and the other three showed the involvement of PMI.⁵⁷ In Vietnam, the Ministry of Science and Technology promoted ENDS as a safer alternative following a meeting with PMI.⁵⁸

 Getting benefits/image promotion via CSR activities

Sponsorships from tobacco industry are allowed for poverty alleviation and disaster relief projects in Vietnam. Sponsorships by the Vietnam National Tobacco Corporation (Vinataba) in the fields of medical purposes, women empowerment, labour welfare, and scholarships are reported. Sponsorships in similar fields were reported from China and Republic of Korea, funded by the State Tobacco Monopoly Administration (STMA) and KT&G respectively. ⁵⁸

Many incidents of donations and CSR activities have been reported during COVID 19 pandemic. LT group, a company involved in tobacco and alcohol industry, and Japan Tobacco International (JTI) donated face masks to two hospitals in Philippines.^{60 61} Collapsible hospital beds were donated to Subic Bay Metropolitan Authority (SBMA) in Philippines by Philip Morris Fortune Tobacco Corp Inc, a joint venture between Philip Morris Philippines Manufacturing Inc. (PMPMI) and Fortune Tobacco Corporation (FTC).⁶² Japan Tobacco International (JTI) Malaysia donated money to supply food for low income families.⁶³ Vietnam National Tobacco Corporation (VINATABA) in Viet Nam donated money, protective cloths and disinfection chambers to Bach Mai hospital.⁶⁴

 Good practices related FCTC Article 5.3

Civil Service Commission and Department of Health in Philippines issued a Joint Memorandum Circular in 2010, which provides a code of conduct consisting with the guidelines of the WHO FCTC Article 5.3, for all government officials. Some government departments enacted institute specific code of conducts or regulations complaint with the Circular.⁶⁵ Similarly, Lao PDR introduced a Code of Conduct for the employees of the Ministry of Health in 2018.⁵⁷

The Government of Australia prohibited the acceptance of donations from the tobacco industry. New South Wales Electoral Commission, Australian Labour Party and Liberal Party banned the donations from the tobacco industry as well.⁶⁵

In 2008, The Government of Australia started to maintain a Register of Lobbyists and a code of conduct for lobbying to make sure the transparency of dealings between the government representatives and the tobacco industry.⁶⁵ Since 2011, the Ministry of Health in New Zealand maintained an online register with all the details of the meetings conducted with the industry which is made accessible to the public.⁶⁵

 Roadmap to tobacco control

All countries in WPR are parties to the WHO Framework Convention on Tobacco Control (WHO FCTC) treaty.³¹

Three countries (Fiji, Mongolia and Samoa) are Parties and another two countries (China and Republic of Korea) are Signatories to the  Protocol to Eliminate Illicit Trade in Tobacco Products. This protocol is an international treaty negotiated by Parties to the FCTC with the objective of eliminating all forms of illicit trade in tobacco products through cooperation of countries.⁶⁶

As of 2020, all countries in WPR have national level tobacco control laws in place.³¹ WHO introduced MPOWER measures comprising the essential six elements (Monitor use and control measures, Protect from tobacco smoke, Offer help to quit, Warn against negative consequences, Enforce ban on advertisements and promotions and Raise tax) to implement FCTC effectively at country level. ⁶⁷ However, the 2019 WHO report on the tobacco epidemic shows that WPR has a considerable gap in achieving complete implementation of policies as per the FCTC directive thus maintaining compliance. Policy areas such as Monitoring tobacco use, Comprehensive cessation services and implementation of Graphical Health warning are well developed in most countries in the region. The compliance scores for each policy area suggest the existing gap between definition and enforcement of the control policies. For example, none of the countries have reached “fully compliant” (i.e. score of 10) in terms of comprehensive smoke-free legislation as per the FCTC directive. Some countries in the region have reached the score of 10 as fully compliant in terms of tobacco advertising, promotion and sponsorships. ⁶⁷

The following table shows a summary of implementation of MPOWER strategies in each country in the WPR (Table 4).A level above zero is considered as implementation.

Table 4: Summary of implementation of MPOWER policies in the WPR ⁶⁷

Lao People’s Democratic Republic is the only country in WPR that has completely banned the tobacco related CSR activities. Department of Education in Philippines issued a Department Order (No. 48 s. 2016) prohibiting tobacco industry sponsorships including CSR activities for both public and private schools.⁶⁵

All countries in WPR, except Japan, Kiribati, Marshall Island, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Tonga and Tuvalu, have implemented Graphic Health Warning Labels (GHWL) on cigarette packs.⁶⁸

Australia and New Zealand have completed the implementation of plain packaging while Singapore has it under consideration.⁶⁹

In November 2017, Viet Nam became the first country in Asia to adopt a policy to stop cooperating with the PMI-funded Foundation for a Smoke-Free World (FSFW). ⁵⁹

Some countries in the region have either banned or regulated electronic nicotine delivery systems (ENDS).Brunei Darussalam, Cambodia, Lao DPR and Singapore are the countries which have banned all types of e-cigarette sales in WPR. Australia and Japan have banned the sale of e-cigarettes with nicotine. ⁷⁰

McCabe Centre for Law and Cancer, a non government institute in Australia, hosts the WHO FCTC Secretariat’s Knowledge Hub on Legal Challenges.This is a one the seven and the first WHO FCTC Secretariat’s Knowledge Hubs established in the world. The aim of establishing Knowledge Hubs is to assist the Parties to implement the articles of FCTC. ⁷¹

As part of WHO FCTC ratification, all countries in WPR have established a FCTC focal point for tobacco control and a National Coordination Mechanism (NCM) except for Fiji, Marshall Islands, Mongolia, Niue, Papua New Guinea, Tuvalu and Vanuatu. FCTC focal points in general are responsible for facilitating the establishment of NCM for FCTC implementation and serve as coordinating hubs for national and international stake holders.⁷²³¹

Industry interference

Tobacco industry (TI) has been ambitious about the Western Pacific region as the region hosts 1.9 billion of the world’s population, and the largest tobacco producer in the world.²²²⁸ Therefore the TI has been using multiple tactics to penetrate and expand the markets in the region.

The following are a selection of themes and examples of tobacco industry interference in the region:

Delaying enforcement of tobacco control laws through litigation

Australian Parliament passed world’s first Plain Packaging legislation on 21 November 2011 to be enforced from 1 December 2012. All four big tobacco companies, British American Tobacco, Philip Morris, Imperial Tobacco, and Japan Tobacco International, brought legal challenges against this legislation. Philip Morris Asia initiated legal proceedings under the Arbitration Rules of the United Nations Commission on International Trade Law 2010, claiming the legislation on plain packaging did not comply with The Australia – Hong Kong Bilateral Investment Treaty. This legislation was also challenged at the World Trade Organization (WTO) by a few countries. Additional legal action was filed at the Australian High Court against the legislation by PMI, BAT, Imperial Tobacco and JTI arguing the new legislation is an acquisition of property by the government.

*For more information on plain packaging and campaigning by tobacco industry against plain packaging laws in Australia, see our pages Plain Packaging, Australia: Challenging Legislation and Plain Packaging in Australia.

Interfering the development and implementation of tobacco control measures

In Japan, when implementing GHWL on cigarette packs, the proposal was dismissed by a committee under the Ministry of Finance which was reported as industry friendly. There was no GHWL displayed in China till 2015 owing to the influence of State Tobacco Monopoly Administration.⁵⁷ PMI and BAT continue their Heated Tobacco Products (HTP) sale without prescribed GHWL amidst the unresolved classification on HTPs in Malaysia. ⁵⁸

With industry interference, China was unable to implement the national-level smoke-free policy. Japan remains with text-only GHWL on the package of tobacco products. Korea is unable to enforce the policies to prohibit the advertising including point of sale advertising and sponsorships. ⁵⁸

The government of Lao PDR made a joint agreement with Imperial Brands, which allows industry preferred tax rates depending on the production. This agreement caused to extinguish about USD 144 million to the government in tax revenues for the period of year 2002-2017.⁵⁷  Cambodia waived off the tax on tobacco leaves exported to Vietnam. ⁵⁷

Aggressive expansion of multinational companies in the region

TTCs are aggressively seeking to expand their markets in this region through acquisitions and mergers. TTCs have also capitalised on countries with weaker economies to enforce unreasonable conditions to favour them when making investments. When Imperial Tobacco acquired Lao Tobacco Limited in 2001, they negotiated a 25-year agreement with the government to charge only a 15% tax on cigarettes. It is estimated as of 2014, Laos have lost more than US$ 79 million in 13 years and will lose more than US$ 72 million in the next 12 years due to this agreement.⁷³

Expansion plans have brought rival companies together on some occasions. South Korea’s leading tobacco company KT&G established a strategic alliance with Philip Morris International in January, 2020 to expand the market worldwide for its heat-not-burn cigarette brand ‘lil’. This partnership have potentially secured a global distribution network for KT&G which had remained domestic predominantly.⁷⁴

 Pressuring governments to open their markets in the name of free trade

Tobacco companies have been able to capitalise on free trade agreements in the region to open the markets. During the 1980s, the US Cigarette Export Association, consisting of Philip Morris International, R.J. Reynolds and Brown and Williamson, petitioned against South Korean and Japan governments under the General Agreement on Trade and Tariffs (GATT) for not opening their markets to foreign cigarette manufacturers. As a result of the GATT ruling, Japan and Republic of Korea had to open its market to US cigarettes in 1990s.⁷⁵

 Interference on tobacco control measures through front groups and business councils

The International Tobacco Growers Association (ITGA) is a well-known global front group of the tobacco industry. Members in the region include the China Tobacco Society in China, Korean Tobacco Growers Organization in Korea, Phil Tobacco Growers Association in Philippines and Vietnam National Tobacco Corporation (VINATABA) in Viet Nam ^{76 7778} ITGA is alleged for smearing WHO and FCTC reports on tobacco control, providing false information about farmers and conflicting statistics, and creating fears among farmers, for example in Philippines and Vietnam. ⁷⁹

Most countries in WPR have American Chamber of Commerce (AmCham) country chapters, namely, Australia, Cambodia, China (China, Hong Kong, Shanghai, South China and Macau), Fiji, Japan (Japan, Okinawa), Malaysia, Mongolia, New Zealand, Philippines, Singapore, South Korea and Vietnam.⁸⁰Senior managers from tobacco industries have served in AmCham leadership positions and both AmCham and US Chamber of Commerce have become platforms for tobacco industry representatives to associate with senior government officials. In 2009, Chris Nelson served as the chairman of PMI Philippines and later he served as the Director of AmCham Board and Trustee of the
AmCham foundation in Philippines.⁸¹ Similarly,  the Board of Governors of the AmCham was represented by the higher positions of tobacco companies in China, Malaysia and Singapore.⁸¹

AmCham contributes to promotion of the image of tobacco industry via CSR activities, Graduate Trainee Programs and different events.⁸¹⁵⁸

US-ASEAN Business Council, which includes a board member from PMI, held a dinner reception collaborating with the US Chamber of Commerce during the 74^thUN General Assembly in New York in 2019. ⁵⁸

* For more detail on the activities and movements of front groups in the region and across the globe, see our pages on Front Groups, Think Tanks and the US Chamber of Commerce.

Funding research institutes and think tanks on advocacy for tobacco industry

The tobacco industry’s usage of research and policy forums to promote its own agenda is a well-known strategy used to influence policymaking. From 2012 to 2015, Philip Morris International (PMI) funded US and UK-based think tanks International Tax and Investment Center (ITIC) and Oxford Economics Ltd, to conduct studies on the illicit trade in the ASEAN region.⁸²

There are instances where industry-funded think tanks directly interfered in tobacco control. In Australia, industry funded think tanks, consultancies and independent experts campaigned against implementation of plain packaging and undermined Australian government efforts, even after the implementation. Read more on this at Australia: Funding Think Tanks and Hiring Independent Experts. In Malaysia, when the Ministry of Health announced plans for plain packaging in 2016, Institute for Democracy and Economic Affairs (IDEAS), a Malaysian think tank, opposed it. IDEAS received funds from JTI and PMI in 2015 and 2016. Since 2015,IDEAS has been actively opposing tobacco control measures, especially plain packaging and tax increase.⁸³

The Foundation for a Smoke-Free World (FSFW) is a Phillip Morris International-funded organisation. In 2019, when Hong Kong government was considering a ban on next generation tobacco products, both FSFW and PMI submitted their arguments against it.

In WPR, FSFW have funded institutes in China and New Zealand,  to conduct tobacco smoking related research since 2018.⁸⁴

There are also examples of TTCs funding organisations to advocate on new generation tobacco products in the region. Factasia.org, a non-governmental organization based in Hong Kong, funded by Philip Morris International and Tobacco Vapor Electronic Cigarette Association (TVECA),is an example.⁸⁵

* Read more about the Foundation and the projects it funds on our pages Foundation for a Smoke-Free World and Foundation for a Smoke-Free World Grantees.

Sponsorships and Involvement in Sports

The government of Japan allows JTI to sponsor volleyball, chess, and golf teams and tournaments and getting media coverage as Japan has not banned the tobacco sponsorships.⁵⁸

*For more information on tobacco industry involvement in sponsoring sports events, see our Motorsport Sponsorship and Gudang Garam and sports endorsement.

Corporate Social Responsibility (CSR) activities

Corporate Social Responsibility(CSR) is a strategy used by the tobacco industry to build their reputation in the eye of the public, to gain sympathies from the governments and as a platform to interact with public officials.

Industry involves government officials during these CSR activities in order to get their endorsements and help for tobacco companies to gain acceptance in the community. Government officials from the Ministry of Industry and Trade have joined to distribute gifts to flood victims sponsored by Vietnam National Tobacco Corporation (Vintaba); and local authorities joined to distribute gifts to poor households at the inauguration ceremony of a bridge constructed sponsored by BAT. In Malaysia, the Minister of Domestic Trade, Cooperatives and Consumerism, whose ministry has a new responsibility to regulate electronic cigarettes, officiated at a Philip Morris-sponsored “Back to School” programme organised by the Salam Foundation, a regular recipient of PMI’s CSR grants.⁵⁹

CSR activities in Japan is oriented towards public education promoting “good manners” in smoking, such as smoking in designated ‘smoking spaces’, aiming to maintain a facade of reconciliation with non-smokers. Japan Tobacco International has established 943 locations as ‘smoking spaces’ with the partnership of 212 Municipalities in Japan. Similarly, in China, guidance was issued by Chinese National Bureau to develop “Beautiful China” with ‘civilised smoking environment’, which operates at national and sub national levels.⁵⁷

In 2017, Shanghai Tobacco Company donated RMB 10 million (USD 1.5 million) to the Shanghai Charity Foundation for education. Charity Award for outstanding corporate social responsibility in China was awarded to Shanghai Tobacco Company by China Charity Foundation.⁵⁷

Philip Morris Fortune Tobacco Corporation (PMFTC) conducts CSR activities through its CSR arm called “Embrace” in Philippines. ⁵⁸

*Read more about the CSR strategies by tobacco industries on our page CSR Strategy.

Illicit trade of Cigarettes (Tobacco Smuggling)

Studies based on industry documents have revealed that TTCs have allowed Tobacco Smuggling as a marketing strategy in several Asian countries with examples in China and Vietnam.⁸⁶ One such study reveals, when China opened its tobacco market for international brands in 1979, BAT initially established its brands such as State Express 555 through smuggling. And BAT has tried to establish a legal presence only when risks for contraband sales were amplified.⁸⁶ Another study reveals that one of the strategies adopted by BAT was to set up the contraband trade to gain access to tobacco market in Vietnam when the Vietnamese government banned importing of cigarettes in 1990. ⁸⁶

* Refer to our pages Tobacco Smuggling and BAT Involvement in Tobacco Smuggling for more information.

 Lobbying for less regulation of next generation products

With increasing controlling laws on traditional smoking products, tobacco industry has focused on developing Next Generation Products (NGPs). Some common NGPs are electronic nicotine delivery systems (ENDS) which also referred to as e-cigarettes and Heated Tobacco Products.

Around the globe and in Asia the industry is lobbying governments for leniency in regulation, which would allow the companies to promote these products or be treated less restrictively than combustible tobacco products. One study shows that in Philippines in 2018, from the nine bills proposing ENDS regulation in Congress, six were oriented to adopting industry positions in relation to ENDS. Three bills, two in the House of Representatives and one in the Senate, showed the involvement of PMI. The Philippines E-Cigarette Industry Association (PECIA) and Vapers Philippines were vocal during the meetings, arguing that regulation should be assigned to the Department of Trade and Industry, promoting the harm reduction argument, and claiming that e-cigarettes are an effective smoking cessation tool.⁸⁷

* Read more about new tobacco industry products and strategies here on Next Generation Products and Harm Reduction

Tobacco tactics resources

*Japan Tobacco International

* US-ASEAN Business Council

*China National Tobacco Corporation

*South East Asian region

* Tobacco Smuggling

* CSR Strategy

* Foundation for a Smoke-Free World Grantees

References

The post Western Pacific Region appeared first on TobaccoTactics.

The South East Asian Region (SEAR) includes eleven countries and hosts more than a quarter of the world’s population.⁸⁸ The region includes one of the largest countries (India), and one of the smallest (Maldives).⁸⁹⁹⁰ The full list of countries included in SEAR are Bangladesh, Bhutan, Democratic People’s Republic of Korea (DPR Korea), India, Indonesia, Maldives, Myanmar, Nepal, Sri Lanka, Thailand and Timor-Leste. ⁹¹

Smoking in SEAR

In 2020, the highest prevalence of tobacco use in the world, was reported in SEAR and it was around 27.9%.²⁷ The average prevalence of tobacco use among males and females reported in SEAR was 46% and 9.7%, respectively.²⁷ Based on the declining trend of the prevalence rates in all regions, World Health Organization expects the prevalence of tobacco use in SEAR to decrease to 25.1% by 2025.²⁷

The 2019 WHO tobacco trends report estimated the population of people aged >15years in SEAR smoking tobacco to be 241 million (15.9% of total population) in 2020. The same report projected the smoking prevalence among males and females in 2020 to be 30.5% (231 million people) and 1.3% (10 million people), respectively.²⁷

The tobacco smoking prevalence indifferent countries in the region varies from 11.8% in India to 38.2% in Timor-Leste. According to the same estimates, the highest and lowest smoking prevalence among males were seen in the same two countries(Timor-Leste 63.3% and India – 21.7%). However, when the number of smokers is considered, the pattern reverses, with the highest number of smokers in India (115.8 million people) and the lowest in Timor-Leste (0.3 million people).²⁷

With regards to use of smokeless tobacco, it is estimated that 81% of the world’s smokeless tobacco users are in SEAR.⁹²Pan masala (mixture of ingredients wrapped in a betel leaf or pre-packaged in foil), gutkha (industrially manufactured product), khaini (dry tobacco leaves and lime), and chewing tobacco mixed with areca nuts are the common varieties of smokeless tobacco products used in the region.^{93 94}

Tobacco Production in SEAR

All countries in the region, except Bhutan and Maldives, cultivate tobacco and manufacture tobacco products. India, Indonesia, Bangladesh and Thailand are among the largest tobacco producers in the world. India is the largest tobacco grower in SEAR and the second largest in the world while Indonesia and Bangladesh are in the 6^th and 8^th places.⁹⁵⁹⁶⁹⁷ It is reported that small-scale household production of ‘Bidi’ and sheesha still happens in Maldives, despite the cultivation and manufacturing ban.⁹⁸ The number of imported cigarettes contain tobacco was 465,597,841 in Maldives in 2018.⁹⁹

Dozens of domestic companies in DPR Korea are involved in the tobacco industry and some involved in export and import. There are allegations of large scale counterfeit cigarette production without a prominent presence of transnational companies.^100101102103

An accelerated cigarette production was reported despite the declining trend of production of raw tobacco in Myanmar.¹⁰⁴

The following table shows a summary of cultivation and production of tobacco in all countries in the SEAR (Table 1).

Table 1: Summary of farming and production of tobacco in the SEAR ^{105106107108109}.¹¹⁰

*N/A = Information not available

Who dominates the market?

The tobacco products that destroy so many people’s lives are the result of the activities of a number of companies around the world. The Tobacco Supply Chain Database enables tobacco control researchers and advocates to understand what the supply chain is, where it is located and who is involved. For more information, access the database here.

In majority of countries, markets are dominated by subsidiaries of transnationals. In Bangladesh, British American Tobacco (BAT) dominates the market and Japan Tobacco International (JTI) also owns a share via the Dhaka Tobacco Industries (DTI).¹¹¹¹¹² In India, tobacco market is dominated by the Indian Tobacco Company (ITC) Limited India, established as a subsidiary of British American Tobacco (BAT). Government of India holds 27.84% of ITC shares.¹¹³¹¹⁴ In Indonesia, market is led by Philip Morris International (PMI) and British American Tobacco (BAT), amidst the presence of over 5,000 local manufacturers.¹¹⁵¹¹⁶ Surya Nepal Pvt Ltd, the key manufacturer of tobacco in Nepal, is a collaboration of the ITC and the BAT.¹¹⁷ Ceylon Tobacco Company PLC (CTC), a subsidiary of BAT, holds the monopoly of cigarette manufacturing and trade in Sri Lanka.¹¹⁸

Myanmar and DPR Korea markets are dominated by local companies. Local companies produce around 30 types of cigarettes in DPR Korea. Ryongsung, Sungcheon and Koksan are the factories that lead the cigarette production. ¹⁰²¹⁰¹ A local company, ‘Rothmans of Pall Mall Myanmar’, dominates the cigarette market in Myanmar with a 50% share. ‘Japan Tobacco Myanmar’, a subsidiary of Japan Tobacco International and BAT also owns market shares.¹⁰⁴

Thailand market is dominated by the state-owned Tobacco Authority of Thailand (TOAT), formerly known as Thailand Tobacco Monopoly (TTM). Philip Morris International also has a significant market share (39.4%).¹¹⁹ According to a survey conducted in 2018, Marlboro is the most smoked brand in Thailand with Winston and Camel following closely.¹²⁰

In Bhutan, the market depends on the cigarette brands imported by the individuals, mainly from India.¹²¹ As it’s prohibited to produce tobacco products by the tobacco control laws in Maldives, tobacco industry comprises of the importers, distributors and wholesalers only. CGT Pvt Ltd, Grape Expectations and Ocean City Cigars are the main distributors of tobacco products.¹²²

The following table shows a summary of most sold cigarette brands and the owning companies in the SEAR (table 2).

Table 2: summary of most sold cigarette brands and the owned companies in the SEAR ^{12311296124102101113125 126127128 129116130 122104 131132 109119 120133134}

*N/A – Information not available

 Presence of Transnational Tobacco Companies (TTCs)

Table 3 summarises the presence of ‘big tobacco’- transnational tobacco companies (TTCs) in SEAR. These companies are present in the region through having either manufacturing facilities, full/partial ownership in local entities or distribution rights. Philip Morris International (PMI), British American Tobacco (BAT) and Japan Tobacco International (JTI) are present in SEAR. BAT is present in eight countries in the region, followed byPMI in seven and JTI in six (Table 3). Even though Maldives has banned tobacco cultivation and production, all three ‘big’ transnationals in the region have a presence there. The presences of all three ‘big’ TTCs are only seen in two other countries in the region – Bangladesh and India.

Table 3: Presence of ‘big’ transnational tobacco companies in SEAR^{11213511311612210413610911912096}

Links to the government

There are examples in SEAR of senior government officials taking up leadership positions in tobacco companies, examples of the Revolving Door phenomenon. It is observed that those positions act as lobbyists or consultants to the industry and take the advantage of existing contacts with the government/ officials to stop or delay the tobacco control measures. In Bangladesh, the former Senior Secretary of the Ministry of Agriculture (2016) and the former Secretary of the Ministry of Industries (since 2012) are both Independent Directors of British American Tobacco – Bangladesh (BATB).⁸⁷Similar incidents were reported from India, Indonesia, Sri Lanka and Thailand.^{13713887139140}

*Please see our page on TPD: Revolving Door Cases for more information on similar cases in the world.

Tobacco Authority of Thailand (TOAT), is a state-owned tobacco enterprise involved in tobacco production and distribution under the jurisdiction of Ministry of Finance in Thailand. As of 2018, TOAT had 55.4% of the cigarette market share.¹⁴¹¹¹⁹

The state has a share in the tobacco industry in both Bangladesh and India. The Indian government owns 27.84% of the Indian Tobacco Company Limited (ITC), through government-owned financial institutions.¹⁴² The Bangladesh government holds a 10.85% shares in BAT Bangladesh (BATB). ¹³⁹ Bangladesh government holds a 10.85% shares in BAT Bangladesh.

Participation of Industry on Policy/Decision Making Processes

The industry is known to lobby the government or higher ranked officials in decision-making processes, especially in policy development and implementation. For example, it was reported that the National Board of Revenues (NBR) in Bangladesh requested the Ministry of Health and Family Welfare to consider the industry opinion in finalising National Tobacco Control Policy in 2019. This was made following a request from the Bangladeshi Cigarette Manufacturers’ Association.¹⁴³

Two transnational industries operating in Bangladesh, BAT and JTI lobbied the Ministry of Industries to continue manufacturing and trade of tobacco products during the COVID 19 pandemic, via letters highlighting the exaggerated contribution to the national economy.¹⁴⁴

Participation of industry in policy making processes also reported in India, Indonesia and Myanmar.¹⁴⁵¹⁴⁶

Getting benefits/image promotion via CSR activities

Representatives of BAT Bangladesh donated money to Bangladesh Labour Welfare Foundation. Acceptance of the cheque by the State Minister for Labour and Employment received publicity including through the official social media channel of the Ministry.¹⁴³

ITC launched a CSR program in schools to raise awareness on waste segregation and management. The program was supported by the Ministry of Urban Development and Greater Hyderabad Municipal Corporation in India.¹⁴⁶

In Indonesia, PT Djarum company sponsored Badminton sporting activities continuously with the blessings of The Minister of Youth and Sport.¹⁴⁵

Many similar incidents of CSR activities were reported from Nepal, Myanmar, Sri Lanka and Thailand.^{145 87139}Some countries in SEAR, Myanmar, Nepal and Thailand, have completely banned the CSR activities of the tobacco industry. ⁸⁷

During COVID 19, ITC Limited India donated money for the COVID contingency fund.¹⁴⁷ Health Hygiene brand of ITC, Savlon, sponsored Kerala government’s COVID-19 awareness programmes and hand washing booths.¹⁴⁸ Philip Morris International (PMI) donated an Ambulance to Indonesian Red Cross and a tobacco manufacturer (Djarum) donated Personal Protection Equipment (PPE) to Pamekasan Regional Hospital  in Indonesia.¹⁴⁹¹⁵⁰

*Please see our pages on CSR Strategy and Covid 19 for more information on similar cases in the region.

Examples of good practices:

Bhutan has prohibited cultivation, manufacture, distribution and sale of tobacco products (both smoked and smokeless forms) within the country.¹⁵¹ The Maldives has also banned cultivation of tobacco and manufacturing of tobacco products.¹⁵²

In 2010, India prohibited foreign direct investments (FDI) from cigarette companies to prevent foreign funded expansion of the industry.¹⁵³ India has also issued a complete ban on e-cigarettes in September 2019, citing the potential risk they posed to India’s youth.¹⁵⁴

Maldives has banned the sale of single sticks in2019.¹⁵⁵

Nepal, Maldives and Thailand have complete bans on advertising, promotions and corporate social responsibility activities (CSR).¹⁵⁶

It is prohibited to give or accept gifts or reward from any tobacco industry under Rule 48 of Article 5 of Tobacco Products Control and Regulation Directive 2071 in Nepal. ¹⁵⁷

In Thailand, it is banned to carry out any tobacco related CSR activities under the Tobacco Product Control Act 2017, though the industry is owned by the government. ¹⁴⁰Thailand is the first country in Asia that implemented plain packaging in December 2018.⁶⁷

Roadmap to tobacco control

All countries in SEAR except Indonesia, are parties to the WHO Framework Convention on Tobacco Control (WHO FCTC) treaty.¹⁵⁸ Three countries, India, Myanmar and Sri Lanka, are additionally Parties to the “Protocol to Eliminate Illicit Trade in Tobacco Products (The Protocol) which is an international treaty negotiated by Parties to the FCTC with the objective of eliminating all forms of illicit trade in tobacco products through cooperation of countries. Sri Lanka was the first be a party to “The Protocol” from the region.¹⁵⁹¹⁶⁰

Cultivation of tobacco and manufacture of products are banned by the national tobacco control laws in Bhutan and Maldives. In 2004, Royal government of Bhutan banned cultivation, production and sales of tobacco and related products.¹⁶¹ In Bhutan, importing a defined quantity of tobacco products are allowed for personal consumption and 57,096 of cigarette sticks were imported in 2019.^{151 162} Import, export and sales of tobacco products are regulated in Maldives.¹⁵²

Bhutan, Indonesia, Maldives, Myanmar and Thailand comprehensively prohibited sponsorships for the government from the tobacco industry or any entity representing them. Countries like Sri Lanka and Timor-Leste have some restrictions on sponsorships.¹⁶³¹⁶⁴

As of 2020, all countries in SEAR have national level tobacco control laws in place.¹⁶⁵WHO introduced MPOWER measures comprise the essential six elements (Monitor use and control measures, Protect from tobacco smoke, Offer help to quit, Warn against negative consequences, Enforce ban on advertisements and promotions and Raise tax) to implement FCTC effectively at country level.⁶⁷However, the 2019 WHO report on the tobacco epidemic shows that SEAR has a considerable gap in achieving complete implementation of policies as per the FCTC directive thus maintaining compliance. Except for health warnings, other policy areas are less well-developed in most countries. The compliance scores for each policy area suggest that there is a considerable gap between definition and enforcement of the control policies. For example, none of the countries have reached “fully compliant” (i.e. score of 10) in terms of implementing taxation policies as per the FCTC directive.⁶⁷

The following table shows a summary of implementation of MPOWER strategies in each country in the SEAR (Table 4).A level above zero is considered as implementation.

Table 4: Summary of implementation of MPOWER policies in the SEAR ^6715831

Two out of seven WHO FCTC Secretariat’s Knowledge Hubs to assist the Parties to implement FCTC are established in the SEAR. National Institute of Cancer Prevention and Research, a government institute in India hosts the WHO FCTC Secretariat’s Knowledge Hub on Smokeless Tobacco. WHO FCTC Secretariat’s Knowledge Hub for Article 5.3 is hosted by the Global Center for Good Governance in Tobacco Control (GGTC) at Thammas at University, Thailand.⁷¹

The region also hosts one of the three WHO-FCTC Secretariat’s tobacco industry monitoring observatories that were established to monitor tobacco industry interference and implementation of the WHO FCTC Article 5.3. The Centre for Combating Tobacco (CCT), is the observatory thus established in Sri Lanka with a mandate to work in the South Asian Region with its networking agencies, South Asian Regional Consortium Centre for Combating Tobacco (SARC-CCT).⁷¹

All countries which have ratified FCTC in SEAR except Timor-Leste have established a National Coordination Mechanism (NCM) and a FCTC focal point for tobacco control. Timor-Leste has only a focal point for tobacco control.¹⁶⁶³¹

Industry Interference

Transnational Tobacco Companies (TTCs) have either manufacturing or distribution facilities in ten of eleven countries in SEAR. The industry has employed aggressive marketing techniques: digital and social media advertising, promotion, sponsorships, introducing flavoured products and CSR activities in the region to establish and sustain the trade.¹⁶⁷

The following are a selection of themes and examples of tobacco industry interference in the region:

Delaying tobacco control measures through litigation

Litigation has been a commonly used strategy by the industry to block and delay tobacco control measures. In India, front groups and associations representing both cigarette and bidi companies filed lawsuits in 2007 against the effective implementation of graphic health warning labels (GHWL). GHWL was delayed until 2009.¹⁶⁸ Similarly, Implementation of GHWL got delayed in Bangladesh, Maldives, Nepal and Sri Lanka owing to industry interference. ^169146145139

Interference with tobacco control measures through front groups and trade associations

The International Tobacco Growers Association (ITGA) is a well-known global front group for the tobacco industry. Members in the region include the Tobacco Institute of India Tobacco Board.^170171172 In India and Bangladesh, implementation of GHWL has been delayed due to interference of  organisations including Tobacco Institute of India, All India Bidi Federation, Federation of Andhra Pradesh Tobacco Farmers and following a review petition by Bangladesh Cigarette Manufacturers’ Association respectively¹⁴⁶¹⁶⁸

The American Chamber of Commerce (AmCham) has country chapters in the SEAR, namely, in Bangladesh, Bhutan, India, Indonesia, Myanmar, Nepal, Sri Lanka and Thailand.¹⁷³ Senior managers from tobacco industries have served in AmCham leadership positions across the region.¹⁷⁴ In Nepal, when the Ministry of Health and Population proposed to increase graphic warnings from 75% to 90%, the US Chamber of Commerce sent a letter to the deputy prime minister threatening to take legal action. ^175176177 Other than AmCham, some trade associations such as Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Federation of Bangladesh Chamber of Commerce & Industries (FBCCI) in Bangladesh have interfered with tobacco control measures. ¹⁷⁸

*For more details on front groups and trade associations in the region and across the globe, see our pages on Front Groups, Trade Associations and the US Chamber of Commerce.

Linking to illicit trade in tobacco products

Studies based on industry documents have found that illicit trade is used by the tobacco industry as a strategy to enter into closed markets, undermine regulation and reap higher profits in many regions.^179180181

It is revealed how BAT used its distributors and international hotel chains for non-legal sales in South-East Asia/Indian sub-continent and evaded tax by smuggling billions of cigarettes in Asia.^{182 183}

*For more information on tobacco industry involvement in smuggling CSR, see our Tobacco Smuggling and BAT Involvement in Tobacco Smuggling pages.

Conducting Corporate Social Responsibility (CSR) activities

Only Nepal, Maldives and Thailand have a complete ban on CSR activities by tobacco industry. The combination of not banning CSR activities and a lack of compliance with tobacco control policy in SEAR has given space for tobacco companies to conduct social responsibility activities in communities in order to build their public image and promote their brands. In Bangladesh, the Agriculture Secretary, Labour Secretary and Additional Secretary of the government’s Finance Division are members of BAT’s CSR Committee and participated in their activities.¹⁸⁴ Similarly, government participation in CSR activities are reported from India and Sri Lanka ¹⁸⁵⁸⁷

* For more information on tobacco industry and CSR, see our CSR Strategy page.

Funding research institutes and think tanks

The tobacco industry’s usage of research and policy forums to promote its own agenda is a well-known strategy used to influence policy making processes. The Foundation for a Smoke-Free World (FSFW) is a Phillip Morris International-funded organization. In SEAR, FSFW have funded institutes in Bangladesh, India, Indonesia and Maldives to conduct tobacco smoking related research beginning since 2018. ¹⁸⁶¹⁸⁷

*Read more about the Foundation and the projects it funds on our pages Foundation for a Smoke-Free World and Foundation for a Smoke-Free World Grantees.

Tobacco tactics resources

* Tobacco Smuggling

* CSR Strategy

* Foundation for a Smoke-Free World Grantees

* Think Tanks

* Trade Associations

* Associated Chambers of Commerce and Industry of India

* US-ASEAN Business Council

*Sri Lanka- Country Profile

*UK Diplomats Lobbying for BAT: Bangladesh

References

The post South East Asian Region appeared first on TobaccoTactics.

Latin America and the Caribbean is composed of 33 countries, covering the territory from Mexico to Argentina, including the Caribbean islands.¹⁸⁸ The region includes some of the countries with the highest population in the world, such as Mexico and Brazil. In 2018, the total population for the region was more than 641 million people, according to World Bank statistics.

Despite its economic growth and being a “biodiversity superpower”¹⁸⁹, one of the main challenges faced by Latin America and the Caribbean remains the high levels of economic inequality.¹⁹⁰ According to a report from the United Nations Development Programme, the richest 10% in the region have a higher share of salary than in any other region (37%) and the poorest 40% receive the smallest share (13%). This equates to one of the highest levels of inequality in the world.¹⁹¹

Smoking in the Latin American and Caribbean Region

Smoking prevalence in the region has been reduced in the last few decades as a result of the regional tobacco control efforts. The Pan-American Health Organization, which is the Americas regional office of the World Health Organization (WHO), estimates that “between 2007 and 2015, the prevalence of tobacco smoking dropped from 22.1% to 17.4%, a greater drop than that recorded globally”.¹⁹² This trend is expected to continue, with the region being the “only WHO region expected to achieve a 30% relative reduction in the prevalence of current tobacco use by 2025.”¹⁹²

Despite the achievements on tobacco control, according to the Tobacco Atlas, “nearly 70 million smokers in Latin America are at risk of tobacco-related deaths and diseases”¹⁹³.  Bolivia and Chile have the highest smoking prevalence in the region, with 40% and 38.7%, respectively, followed by Cuba with 35.9%, Suriname with 26.2%, and Argentina with 22.5%. In contrast Ecuador (7.4%) and Panama (6.6%) have the lowest prevalence in the region. ¹⁹⁴

A gender perspective on smoking in the region

Men have a higher consumption rate compared to women, despite the tobacco industry’s long term efforts to target women in its marketing and advertising strategies.¹⁹⁵ Even so, Latin America and the Caribbean are ranked second by the WHO, regarding higher rates of female tobacco consumption, following Europe.¹⁹⁵ Chile, Uruguay, and Argentina have the highest rates of consumption among women (see the graph showing tobacco consumption in the general population by gender and country, with data in blue being for men and data in orange for women). ¹⁹⁶

Figure 1: Smoking prevalence in LAC region. (Source: Organization of American States, smoking prevalence¹⁹⁶)

Tobacco use among youth (10- to 15-year-olds) in the region

Jamaica has the highest rate in youth consumption in the region, with 28.7%, followed by Colombia with 22% and Chile with 19.7%. Brazil has the lowest rate of tobacco consumption amongst the youth, as a result of the efforts of the country to introduce tobacco control measures as advertising ban, health warnings, and flavouring ban ¹⁹⁵.

Most countries in the region have a strict ban on the sale of tobacco products to minors, however, there is evidence to suggest tobacco use initiation starts between 10-13 years old, with those in Caribbean countries starting to smoke at a younger age on average than the rest of the region.¹⁹⁵

Figure 2: Tobacco and heated tobacco consumption in LAC region (Source: reproduction based on data from PAHO, 2007-2017)¹⁹⁵

The consumption of newer nitcotine and tobacco products among the young population has increased in the region. However, conventional cigarette remains the highest consumed tobacco product. The following graph shows the consumption of tobacco products and next-generation products, by country. Jamaica also leads the consumption of next-generation products, followed by Dominica and Saint Vincent and the Grenadines. ¹⁹⁵

Tobacco production in the Latin American and Caribbean Region

Several countries in the region are major tobacco leaves growers and suppliers at a global level. Brazil has 75% of the regional tobacco production, followed by Argentina, Colombia, Guatemala, and Cuba representing 18.4% of the production collectively. However, the area of land dedicated to tobacco farming in the region has decreased from 668,890 hectares in 2006 to 556,372 hectares of land in 2014.¹⁹⁷

Brazil is the second-largest tobacco-growing country in the world, after China.¹⁹⁸ Tobacco farming in Latin America represents almost 16% of the global production. Moreover, the cultivated area in the region reaches 13.55% of the global land dedicated to tobacco farming worldwide ¹⁹⁹ Central American countries such as Nicaragua, Cuba, Dominican Republic, and Honduras are the main global producers of cigars. ²⁰⁰

Who dominates the market?

The tobacco products that destroy so many people’s lives are the result of the activities of a number of companies around the world. The Tobacco Supply Chain Database enables tobacco control researchers and advocates to understand what the supply chain is, where it is located and who is involved. For more information, access the database here.

The tobacco market in Latin America and the Caribbean is dominated by Philip Morris International (PMI) and British American Tobacco (BAT). In the 1990s, BAT had 60% of the tobacco market, with PMI making up the majority of the remaining 40%, and some minor presence from Japan International Tobacco in Bolivia.²⁰¹ However, in the late 2000s, Philip Morris started buying local manufacturers and tobacco brands. ²⁰²

Since 2015, British American Tobacco and Philip Morris International control the tobacco market in Latin America and the Caribbean, with BAT controlling 51.4% of the market. ²⁰³. In 2018, the company shares of cigarettes in Latin America showed BAT with 40.0% and PMI with a very close 39.5%, as shown in the following graph:

Figure 3: Company shares of cigarettes in Latin America (Source: Euromonitor 2020²⁰⁴)

The most popular brand of cigarettes in the region in 2018 was Marlboro, by Philip Morris International, followed by Pall Mall, produced by the British American Tobacco. The following graph illustrates the brand shares of cigarettes in Latin America:

Figure 4: Brand shares of cigarettes in Latin America (Source: Euromonitor 2020²⁰⁵)

Table 1. Countries with most sold cigarette brand owned by international and multinational companies, in the most populated countries of Latin America and the Caribbean

Links to the government

Latin America and the Caribbean has been a leader on tobacco control at the global level for decades. ^{215 216} The region has a world-renowned reputation for its tobacco control efforts, including the design and implementation of effective evidence-based policies. As a consequence, the tobacco industry has attempted numerous times to undermine those efforts. As described by regional tobacco control experts: “The tobacco industry, with enormous resources and possibilities, is on high alert and giving a fierce and intelligent fight. What is visible, at least in the Americas Region, is that they continue to rely on the old tactics (albeit more aggressively): lobbying directly, especially in finance ministries and also at higher levels of government, to oppose tobacco tax increases, advertising bans or neutral packaging.”¹⁹⁵

Latin American and Caribbean government representatives have long recognised the pressures they are under from the tobacco industry. An expert committee from the Pan-American Health Organization was convened in the year 2000 to evaluate the industry interference in the region. ²¹⁷

In 2010, PAHO convened a meeting for Ministers of Health to discuss the issue. Delegates pledged to counteract efforts by the tobacco industry or its allies.²¹⁷ After this meeting, the Executive Council of PAHO met in October 2010, to keep discussing the industry interference through lobbying of decision-makers, threatening litigation and influencing the political discussion around tobacco regulation in the region.

Aznar lobbying for PMI in Chile and Peru

A tactic that the industry often uses in the region is hiring high-level lobbyists to influence government officials. Such is the case of José María Aznar, the former Spanish Prime Minister and President.²¹⁸ Since 2018, it has been widely reported by the international media that Aznar has taken a position as a lobbyist for PMI in Latin America. ^219220221

Chile

According to public records from the Government of Chile, Aznar met with the Chilean Minister of Finance, Felipe Larrain Bascuñan, and the Chief of Staff of the Ministry of Finance, Francisco Matte Risopatrón, on 8 May 2018.²²² The next day, on 9 May 2018, as stated in the public records, Chilean Minister Felipe Larrain Bascuñan met for an hour with several lobbyists from different multinational corporations, including two lobbyists for PMI.²²³

Peru

In January 2019, the Congress of the Republic of Peru, began discussions on stricter tobacco product regulations, including a ban on tobacco advertising.²²⁴ At the same time, a group of congress representatives from Fuerza Popular, one of the main right-wing parties of Peru, submitted the 3833 bills ²²⁵ to replace the current tobacco control law 27805 with less restrictive regulations. These proposed amendments would allow the introduction of e-cigarettes (also known as electronic delivery systems, or ENDS) in Peru.²²⁶

Several newspapers and media outlets reported that Aznar travelled to Peru, in February 2019 on a similar mission to the one in Chile, lobbying for the tobacco industry.^{227 228} Allegedly, Aznar made an appointment to meet with the Minister of Health but did not attend this meeting in the end. ²²⁸

Montepaz lobbies for change to the law in Uruguay

On 2 September 2022, President Luis Lacalle Pou signed a decree to modify Uruguay’s plain packaging law. It would have reintroduced soft cigarette packs; removed the requirements for the inside of the pack to be plain white in colour and for packs to be lined with metallic foil; and abolished the prohibition on logos or branding on the cigarettes themselves.²²⁹ Lacalle Pou argued the reforms were necessary to fight illicit trade, and said that the decree was a response to a request from Montepaz, Uruguay’s largest tobacco company:²³⁰

“Is this to benefit the company Montepaz? No, it was a chewing gum factory who asked for it!” he said sarcastically, adding: “Who manufactures cigarettes in Uruguay? Montepaz. Who was it who asked the Ministry of Industry for this change? Montepaz. Now, if anyone believes that we just bow to pressure, they don’t know us, that’s disrespectful.”²³¹

In February 2020, following publication of the 2019 election campaign finances by the Uruguayan Electoral Court, the newspaper El Observador reported that Montepaz had donated around $13,000 to the campaign of Lacalle Pou and his running mate Beatriz Argimón.²³² In local currency, the amount reported is 552,180 pesos, as per the published document.²³³ In September 2022, following the decision to modify the plain packaging law, The Tobacco Epidemic Research Centre (CIET), a Uruguayan NGO, highlighted that political contributions by tobacco companies are illegal under both the WHO FCTC and Uruguayan law.²³⁴

It also emerged that in April 2022, Montepaz had hosted Nicolás Martinelli, then an advisor to President Lacalle Pou, at company headquarters. Martinelli published photos of the visit on his Instagram, alongside comments publicising Montepaz’s creation of employment.²³⁵

In October 2022, responding to an appeal by the Uruguayan Tobacco Control Society, the courts suspended the decree, on the grounds that it violated the right of children and adolescents to protection from inducement to tobacco use.²³⁶

Roadmap to tobacco control

Latin America has had an important role in the negotiations on global tobacco control policies. An example is the WHO FCTC negotiations and diplomatic processes, where the region was represented by Brazil. The Brazilian ambassadors were chosen to be the two first consecutive chairs of the intergovernmental negotiations. Chile also stood out, by later becoming chair of the negotiations towards the Protocol to Eliminate Illicit Trade in Tobacco Products. ²³⁷ Latin American leadership on tobacco control has also been shown by the important roles carried out by Latin American women in the Framework Convention on Tobacco Control Secretariat. Dr. Vera Luiza da Costa e Silva from Brazil was head of the WHO FCTC Secretariat for six years (2014-2020). Additionally, the former PAHO Tobacco control diplomat from Uruguay, Dr Adriana Blanco, was appointed in 2019 as the new head of the Secretariat until 2024. ²³⁸

In the road to achieving tobacco control in the region, civil society has also had an important role and continues to do so. Beatriz Champagne, Latin-American tobacco control expert, argues that “Civil society has been the engine that has permitted many of the accomplishments seen in tobacco control in Latin America and the Caribbean. However, as civil society efforts frequently involve work behind the scenes, results may merge with those of other institutions and might be not recognized”²³⁹

Framework Convention on Tobacco Control and MPOWER in Latin America and the Caribbean

Most countries in the region have signed and ratified the WHO FCTC, as the following map illustrates. The exceptions are Argentina, Cuba, Haiti and the Dominican Republic. The most recent countries to ratify the Convention from the region are El Salvador and St. Vincent and the Grenadines, in 2014 and 2011 respectively. ²⁴⁰

Figure 5: FCTC parties in Latin America and Caribbean region. (Source: TobaccoTactics own production)

In terms of implementation of the WHO FCTC and the MPOWER program of six policies designed to reduce the global tobacco epidemic, the following progress has been achieved by 2019. Out of the 19 signatories’ countries that have provided data to PAHO:

• 13 countries are implementing and complying with article 8 on protection from exposure to tobacco smoke ²⁴¹
• 13 countries are implementing and complying with article 11 on health communication and packaging regulations for tobacco products. ²⁴¹
• 13 countries are implementing policies recommended by WHO in MPOWER on warning people about the dangers of tobacco. ²⁴¹
• seven countries (Brazil, Chile, Costa Rica, Ecuador, Panama, Peru, and Uruguay) are implementing recommendations by WHO in MPOWER on monitoring tobacco use and prevention policies²⁴¹
•  Only four countries (Brazil, Colombia, Panama, and Uruguay) are implementing and complying with article 13 on tobacco advertising, promotion, and sponsorship. ²⁴¹
• Only four countries (Argentina, Brazil, Chile, and Colombia) are implementing and complying with a 75% or higher tax to tobacco products. ²⁴¹
• Only four countries (Brazil, Colombia, Panama, and Uruguay) are implementing recommendations by WHO in MPOWER on enforcing bans on tobacco advertising, promotion and sponsorship ²⁴¹
• Only three countries (Brazil, El Salvador, and Mexico) are implementing recommendations by WHO in MPOWER on offering help to quit tobacco use²⁴¹

Even though these results might not be achieving the goals set by the region to reduce the global tobacco epidemic, the scenario has improved remarkably in the last 20 years, especially with implantation of the FCTC. The difference between the implementation levels in the region between 1999 and 2019, is substantial.

The map illustrates the status of tobacco control policies implementation in Latin American and Caribbean countries in 2019, from right to left in the map, on Protection from exposure to tobacco smoke (art.8), Packaging and labelling of Tobacco Products (art. 11) and ban of tobacco advertising, promotion, and sponsorship (art.13). In red, the countries that have not implemented the different articles and in yellow and green the countries that are on the path to implementation.

Figure 6: Adherence to WHO FCTC articles in the Americas. (Source: reproduction from data provided by Adriana Blanco, PAHO, 2019²⁴¹)

As can be observed, the scenario has improved drastically despite the tobacco industry efforts to prevent regulations to pass in the region. Some successful cases of preventing tobacco industry to interference in the discussions and passing of tobacco regulations are:

• the case of Panama in 2008, which was the first Latin American country to instate advertising, promotion and sponsorship ban, complying with the WHO FCTC recommendations. BAT and PMI tried in three different legal stances, to counter these effective measures. The Panamanian Supreme Court ruled in favour on the Ministry of Health and the health prevention measures, supporting the country´s efforts to end the tobacco use epidemic²⁴²
•  the case of Guatemala in 2008, when the country was able to prevent the interference of the tobacco industry during the passing of the national law towards the implementation of 100% smoke-free environments. As reported by the InterAmerican Heart Foundation, “The Supreme Court dismissed the public action for unconstitutionality filed by the tobacco industry through the Chamber of Commerce with the objective of preventing the adoption of such measure” ²⁴³
•  the case of Honduras in 2010, where during the debates towards the Special Tobacco Control Act 2010, the National Congress decided not to allow the participation of tobacco industry representatives. The Congress acted, despite the persistent request of the Honduran Council of Private Corporations and other congressional representatives.  Honduran law explicitly prohibits “all interference from commercial or other vested interests of the tobacco industry”.²⁴³
• the case of Peru in 2010, during discussion of the tobacco control bill at the parliamentary commissions, where the participation of representatives of the tobacco industry was not allowed. The industry interference was prevented mainly thanks to an active engagement of the tobacco control civil society. ²⁴³
• the case of Brazil in 2019,  where the Office of the Attorney-General of Brazil filed a lawsuit at the Federal Court of Rio Grande do Sul against the big tobacco corporations in Brazil and their parent companies abroad, “to seek recovery of healthcare costs related to the treatment of tobacco-induced diseases. The claim covers costs generated in the Brazilian healthcare system for the treatment of patients suffering from 26 diseases linked to the consumption of tobacco products and exposure to tobacco smoke, and foresees proportional compensation for future spending, and collective moral damages, as a consequence of the tobacco public health burden.²⁴⁴

Industry interference

Challenging legislation

The tobacco industry has a history of challenging legislation, tobacco control programmes and regulation that affects its sales. It does through this direct lobbying, using third parties and legal threats.

Research conducted by PAHO in the region²⁴⁵ shows that one of the key tactics that the industry often uses is to offer “self-regulation” deals, that involve the drafting of their regulations for the Latin American and Caribbean countries. According to PAHO: “The industry’s legislative  proposals,  like its voluntary codes,  typically  contain  minor  concessions  that  the industry  believes  will  not  significantly  impact  tobacco sales,  and  are  intended  solely  to  build  corporate  image and, most importantly, block or at least delay meaningful regulation.”²⁴⁵

An historical record of this tactic is illustrated in a quote obtained from the leaked industry documents about Nicaragua in 1992, when the Central American country was trying to pass tobacco regulations. This message came from TANIC, one of BAT´s subsidiaries in Nicaragua: “Experience elsewhere has shown that it is desirable to be ahead of the game and try to contain legislation rather than repair damage after the event. … TANIC must be in a position to influence … legislation to protect or promote its interests.”²⁴⁵

In the region, several cases serve as example of how the industry seeks to undermine public health efforts via this tactic:

Tobacco tax raise in Colombia

In 2015, the price of cigarettes in Colombia was one of the lowest in the region, at approximately US$2 per 20 cigarette pack. According to data from the Ministry of Health of Colombia, “The direct cost to the Colombian health system attributable to smoking for the same year was over US$ 1 billion equivalent to 0.6% of the Gross Domestic Product.” ²⁴⁶. Colombia, Party to the Framework Convention on Tobacco Control, decided to move towards the implementation of the WHO´s recommendation of at least 75% tax of retail price of tobacco products.²⁴⁷ Colombia´s government decided to increase progressively, starting from their baseline of 49.4%.²⁴⁸

Implementation of the 2016 tobacco tax reform placed Colombia as a regional leader in tobacco control. In the first year of implementation it helped reduce the number of smokers by close to 400,000 while increasing tobacco tax revenues by 46%.²⁴⁹With more than 32,000 people dying from the tobacco-caused disease in Colombia every year²⁵⁰ it is vital to protect and sustain the tax. Philip Morris International, the leading seller of cigarettes in Colombia, has a long history of aggressive opposition to tobacco control measures. For more information, see the Tobacco Tactics web page on Philip Morris International.

In 2019 PMI campaigned to intimidate policymakers, infiltrate the policy process and undermine Colombian legislation. For example, PMI blamed factory closures on tobacco control measures,²⁵¹ co-opted anti-smuggling programs,²⁵² and attempted to discredit the success of the tobacco tax at a congressional hearing.²⁵³ Its dubious claims linking increased tobacco tax to increased illicit trade purposefully ignored the fiscal and public health benefits gained, as supported by independent investigations in Colombia ²⁵⁴²⁵⁵and by the World Bank ²⁵⁶

Interference in newer products regulations in Chile

Electronic cigarette consumption in Chile has grown from 3.6% in 2014 to 6.5% in 2016 amongst those aged 12-65. ²⁵⁷ The highest prevalence of electronic cigarette consumption has been consistently observed in younger age groups (15-24 years) particularly in area around the capital Santiago where the consumption of electronic cigarettes among those aged 13-15 years was 12.1% in 2016.²⁵⁸

The Institute of Public Health regulates e-cigarettes as a pharmacological product. The National Agency of Medicines, as the governing body of the certification of medicines in Chile, authorized some of these products to be marketed as pharmaceutical products, when it could have been regulated by existing regulations on tobacco.²⁵⁹ In September 2019, a new bill was sent to Parliament proposing to regulate e-cigarettes and heated tobacco products as tobacco products. Under this proposed bill, these newer would be regulated by the tobacco law enacted in 2013, resulting in a ban on advertising and promotion, the sale to minors, and smoking or vaping in enclosed spaces and they would need to include health warnings like conventional cigarettes. ²⁶⁰ However, the discussions around this bill were delayed due to the political complications that the country faced at the end of 2019.

Standardised packaging: Uruguay vs Philip Morris

Uruguay has some of the most progressive tobacco control policies in the world. In October 2017, Uruguayan President Tabare Vázquez announced that his government would introduce plain packaging legislation, becoming the seventh country to do so, following Australia, UK, Ireland, France, Norway, and Hungary.²⁶¹²⁶²

In February 2010, PMI (represented by law firm LALIVE) challenged Uruguay using the World Bank’s International Center for Settlement of Investment Disputes. It sought damages under the Switzerland-Uruguay Bilateral Investment Treaty (BIT) for tobacco control regulations.²⁶³²⁶⁴

The company claimed that Uruguay’s regulatory measures violated the investment protection agreement signed in 1991 between Uruguay and Switzerland, where PMI is headquartered.²⁶⁵ PMI claimed that the case was about trademark protection and called the design of some of the six health warning messages “repulsive and shocking”. It said: “We do not oppose the use of graphic health warnings but believe that images should accurately depict the health effects of smoking… We have a powerful case, and in the absence of any change to these excessive regulations we will continue with our claim.” ²⁶⁶

In July 2016 The World Bank’s Court dismissed all claims that Uruguay had breached the 1991 BIT, stating that Uruguay had “the right to continue its anti-cigarette campaign”, and ordered the company to reimburse the state’s legal expenses.²⁶⁷

Uruguay is not the only country that has been taken to court by the tobacco industry over tobacco control measures. For an overview of some of the tobacco industry’s legal challenges across the world, go to Tobacco Tactics page on Legal Claims.

Influencing science

The tobacco industry has a long history of influencing the scientific debate on smoking and health. Tens of thousands of internal industry documents, released through litigation, reveal that the industry knew for decades that its products caused cancer and were highly addictive and yet it refused to acknowledge this publicly. The tobacco industry continues to influence the science around smoking and tobacco in an effort to frustrate regulation and protect profits.

Latin America and the Caribbean have not been exempted from the influence of these tobacco industry tactics. Tobacco control researchers from the region have been pressured by the tobacco industry not to publish their results and to alter the content of their research findings. The Pan-American Health Organization (PAHO) published a report on tobacco industry influencing science in 2002, going over thousands of leaked documents from the tobacco industry, mainly from British American Tobacco and Philip Morris International. The report revealed that the tobacco industry had hired scientists across the region seeking to distort scientific findings linking passive exposure to cigarette smoke with serious disease. Furthermore, the tobacco industry failed to disclose any connection or involvement with these scientists and researchers. ²⁶⁸

One historical example was the Environmental Tobacco Smoke (ETS) consultancy program, described as “the core industry strategy to undermine efforts to reduce second-hand exposure, was jointly financed by PM and British American Tobacco, and coordinated by the Washington, D.C. law firm of Covington and Burling.” ²⁴⁵ This program began as a global strategy in 1987, hiring experts from other countries to work in Latin America. Later, in 1991, Latin American experts from Argentina, Brazil, Chile, Costa Rica, Ecuador, Guatemala and Venezuela, were hired for this program.²⁴⁵

Information uncovered from the leaked documents analysed by PAHO in this report had quotes from the industry said:

“Unlike many other regional ETS consultant programs sponsored by the industry, the Latin project was initiated in anticipation, rather than in reaction to, the full-force arrival of the ETS issue to Central and South America… Critical to the success of the Latin Project is the generation and promotion of solid scientific data not only concerning ETS specifically but also concerning the full range of potential indoor and outdoor air contaminants. This approach encourages government agencies and media in Central and South America both to resist pressure from anti-smoking groups and to assign ETS its proper place among the many potential indoor and outdoor air contaminants found in these regions.”²⁴⁵

Further examples are the PMI Impact funded projects in Argentina, Paraguay and Brazil,  which, as describe in the PMI website, seek to develop models on illicit trade in the triple-border area, as well as in Central American countries as Honduras and El Salvador. ²⁶⁹

The industry has always pushed for its funded projects to be perceived as “independent”. The leaked documents uncovered in PAHO´s report show that fabricating independency of these research centres is part of the industry´s strategies. A quote from a BAT executive in Costa Rica, regarding the collaboration program between BAT and PMI to influence science in the region, says : “I cannot stress strongly enough the absolute necessity for the industry to have no direct contact with these scientists [the consultants] that are part of the program. … If one scientist in the group is perceived by anyone to be associated with the industry, then we run the risk, by association, of this happening for the rest of the group and the whole exercise will become pointless. All contact, as previously explained, must be carried out through Covington & Burling.”²⁴⁵

The region still faces many challenges in identifying industry-funded data, uncovering the academic and scientific organizations collaborating with the industry and countering the pressure on tobacco control researchers aiming at publishing evidence-based papers and reports.

Political contributions to political parties in Latin America

Another tactic that the tobacco industry uses in Latin America and the Caribbean, is lobbying decision-makers through financial political contributions to political parties. PMI has been making these financial political contributions to political parties in Latin America for years. ²⁷⁰

Since 2010, Philip Morris International official records show that this tobacco company has contributed to:

• Dominican Republic political parties in 2016: US$ 66,803 in 2016 ²⁷¹
• El Salvador political parties in 2015: US$ 10,000 ²⁷²
• Brazil political parties in 2014: US$ 520,059 ²⁷³
• El Salvador political parties in 2012: US$ 9,000 ²⁷⁴
• Dominican Republic parties in 2011: US$ 4,887 ²⁷⁵
• Brazil political parties in 2010: US$ 567,860 ²⁷⁶

British American Tobacco does not declare political contributions to political parties in the region, however, it does contribute extensively in the United States and Europe. ²⁷⁷

The challenges ahead for the region are directly influenced by the constant pressure that the governments experience by the tobacco industry and its tactics.

Tobacco Tactics Resources

• Philip Morris International
• British American Tobacco
• Influencing Science
• Challenging Legislation
• Legal claims
• Chile-Country profile
• Plain packaging: Uruguay vs Philip Morris

References

The post Latin America and Caribbean Region appeared first on TobaccoTactics.

This is one of six geographic regions of the World Health Organization (WHO). This region includes 22 countries, with a total population of nearly 679 million people.²⁷⁸

Smoking in the Eastern Mediterranean Region

The latest WHO tobacco trends report, 2019, projects a smoking rate (properly called tobacco prevalence) of 18.6% in the EMR in 2020. The report expects a tobacco prevalence decrease in the region from the estimated 20.5% in 2015 to 17% in 2025. This decrease will however mean an increase in numbers of tobacco users from the estimated 90 million in 2015 to 94 million in 2025 because of population growth.²⁷⁹

The report also shows a huge difference in tobacco prevalence according to gender with 33.3% tobacco prevalence among males but just 3.9% among females. Another remarkable difference is the tobacco prevalence across different countries in the region. It starts at 9.6% in Oman and reaches 42.6% in Lebanon.²⁷⁹
The EMR has the highest waterpipe use as compared to any other region. Waterpipes are a particular method of consuming tobacco with it heated and drawn through water in inhaled via a pipe., It is estimated that schoolchildren aged 13–15 use waterpipes more frequently than cigarettes.²⁸⁰ Studies indicate mean prevalence estimate of ever use of waterpipe of 31.9% among adults in the EMR.²⁸¹

Tobacco in the Eastern Mediterranean Region

Out of the 22 countries of this region, at least 14 countries grow tobacco and at least seven countries manufacture it. The following table shows a summary of agriculture and production of tobacco in the EMR (table 1). This table is based on fact sheets prepared jointly by WHO and the United Nations Conference on Trade and Development in 2015. However it is believed that both agriculture and production are much higher now.²⁸²

Table on agriculture and production of tobacco in the EMR

Who dominates the market?

The tobacco products that destroy so many people’s lives are the result of the activities of a number of companies around the world. The Tobacco Supply Chain Database enables tobacco control researchers and advocates to understand what the supply chain is, where it is located and who is involved. For more information, access the database here.

The cigarette market in the EMRO region is dominated by international and multinational companies, with their brands being the most sold cigarette in at least 12 countries. Locally produced cigarette brands are still the highest sellers in at least four countries. The waterpipe market shows a growing presence from multinational companies.²⁸³²⁸⁴

Table showing countries with most sold cigarette brand owned by international and multinational companies

Table showing the countries with most sold cigarette brand owned by local companies

Table giving examples of the dominant brands of waterpipe in the region

Links to governments

The industry aims to make sure it is well-represented

The industry has an established strategy in the region to lobby political figures and governments to serve its benefits. This strategy indicates links between tobacco industry and senior officials in the region trying to influence their decision making process.²⁹⁶
It is reported that the tobacco industry used corporate social responsibility activities as a strategy to access officials in Egypt, Jordan, Lebanon, Morocco, Pakistan, Tunisia and the United Arab Emirates. An example of the industry lobbying in the EMR is in trying to influence the countries’ selection of their representatives to the Conference of Parties (COP) of the WHO Framework Convention on Tobacco Control (WHO FCTC). Tobacco industries have pushed countries to send representatives from non-health sectors, who may see tobacco as a business rather than a health hazard.²⁹⁷

There are state-owned and state-supported companies in number of EMR countries such as the Eastern Company in Egypt, Iran Tobacco Company in Iran, National Tobacco and Matches Corporation in Tunisia, Regie Libanaise des Tabacs et Tombacs in Lebanon, Régie des Tabacs in Morocco, and Kamaran Industry and Investment in Yemen. Most of these companies are a monopoly in charge of production, importing, and exporting tobacco products.²⁹⁸

Examples of good practice

Iran, one of the leading tobacco control countries in the region, is reported to be a successful country in resisting tobacco industry interferences by adherence to the WHO FCTC Article 5.3 guidelines. Iran bans corporate social responsibility activities by the tobacco industry and does not accept any support from or presence of the representatives of the Iranian Tobacco Company, a state monopoly, in its tobacco control policy making process.²⁹⁹

Saudi Arabia, another leading tobacco control country in the region, has issued a policy to regulate communication and interaction, if required, between the government officials and tobacco industry. The policy reflects the principles and recommendations of Article 5.3 of the WHO FCTC. ³⁰⁰

Roadmap to tobacco control

Most countries of the EMR are parties to WHO FCTC with 19 out of 22 countries have ratified joining the treaty.³⁰¹ Additionally, six countries of the region are parties to the Protocol to Eliminate Illicit Trade in Tobacco Products.³⁰² Most countries of the EMR have tobacco control laws.³⁰³ However, the strength of such laws varies dramatically from a country to another.³⁰⁴

The WHO Report on Global Tobacco Epidemic 2019 shows that out of the 22 EMR countries there are six countries that have recent, representative and periodic data on tobacco prevalence for both adults and youth; seven countries that have legislation banning smoking in all public places; three countries that have national quit line and both nicotine replacement therapy and some cessation services cost-covered; five countries that have large pictorial warnings on tobacco packages; four countries that have conducted national tobacco control campaign aired on television and/or radio; ten countries that have legislation banning all forms of direct and indirect advertising; and three countries that have a tax on retail price on the most popular brand of cigarettes higher than 75%.³⁰⁵

Although the number of countries having such powerful tobacco control measures is not high, most of the EMR countries have at least some tobacco control measures. Most have implemented measures that puts them in the middle of their way to meet the comprehensive and recommended measures of tobacco control by the WHO FCTC. The report also shows that despite the existence of tobacco control laws, the compliance to such laws is challenging. For example, the report puts only one country in high compliance category out of the seven countries that have legislation banning smoking in all public places, and puts only five countries in high compliance category out of the ten countries that have legislation banning all forms of direct and indirect advertising. This compliance assessment highlights a huge gap in enforcement of existing legislation.³⁰⁴

Stakeholders of tobacco control in the EMR includes governments, international intergovernmental organizations, non-governmental organizations, and academic institutes. Most countries of the EMR have a tobacco control unit within their ministries of health. Most international intergovernmental organizations that are accredited as observers to the COP are present in the EMR including the Arab League that 19 of the EMR countries are included in its members.³⁰⁶ However the presence of non-governmental organizations accredited as observers to the COP is less noted in the EMR.³⁰⁷³⁰⁸

Some academics in the region work in the field of tobacco control research with an example of the American University in Beirut hosting the Knowledge hub of FCTC on waterpipe.³⁰⁹ The WHO is present in the region through the Tobacco Free Initiative Unit in their office for the EMR, in addition to tobacco control focal point in the organization’s country offices.³¹⁰

Industry interference

Published literature shows that the EMR has been suffering from tobacco industry interferences for many decades. Such interferences undermine efforts of tobacco control in the region leading to continuous high prevalence of tobacco use. ³¹¹ The following are themes and examples of tobacco interferences in the EMR.

Illicit trade

The tobacco industry claims to combat illicit trade but that contradicts their overproduction in some markets and oversupplying to others and in the knowledge that excess tobacco will end up on the illicit market. In the region, the tobacco industry continued to supply the contraband trade despite appeals by the government to cease undermining its revenues.³¹² The magnitude of illicit trade in both cigarettes and waterpipes is huge within the EMR with studies referring to the tobacco industry involvement either through the producers or the distributers of tobacco, using various routes to, from and across the region. ^{313314315316317318}

Hijacking public health policies

The industry aims to undermine tobacco control efforts through their links to governments in the EMR.²⁹⁶ For example the tobacco industry manoeuvrings to hijack the track and tracing systems of tobacco products in the EMR. Although, as discussed earlier, the links between the tobacco industry and illicit trade are studied and observed, there is still an ongoing process of signing memorandums of understanding between them and the governments in many of the EMR allowing the industry to have links with customs and giving them the opportunity to influence the new track and tracing systems.³¹⁹

Influencing taxation policies

Internal documents of the tobacco industry show their efforts in delaying the establishment of unified tax increases across the Gulf Cooperation Council’s countries that consists of six of the EMR countries; Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.³²⁰ An internal Philip Morris memo showed how they work strategically to influence the tobacco taxing system in Egypt through range of interferences including lobbying at all levels of the authorities.³²¹ In Pakistan, the tobacco industry did changes in cigarette prices at their advantage by shifting some of their most sold brands to the lowest tax slab allowing itself to manipulate the market by price setting.³²²

Expanding of multinational companies

The expansion of multinational companies in the region as part of the industry’s strategy to shift from developed markets, where tobacco control policies are strong and smoking prevalence is declining, to emerging markets where demand for tobacco is higher and tobacco control legislations are weaker. Additionally, local companies such as Eastern Company in Egypt are expanding as well.³²³ A prominent example for the expansion of multinational companies in the EMR is the increasing investments of Japan Tobacco International in the region. The company bought two major tobacco manufactures in the EMR: the Egyptian waterpipe company Nakhla and the Sudanese cigarette manufacturer Haggar, which gives Japan Tobacco access to export its products to 85 countries, mainly in the EMR and Africa.³²⁴³²⁵

Promoting Next Generation Products

The tobacco industry is aggressively promoting electronic nicotine/ non-nicotine delivery systems and heated tobacco products in the region and has already launched them in number of countries such as Kuwait.³²⁶ It is also expected that an international “vaping expo”, first of its kind, will be held in the United Arab Emirates in 2020 to frame the future of such products connecting manufacturers, distributors, and users of the products.³²⁷ Although these products are being promoted globally by the industry, the case in the EMR is unique as electronic cigarettes were already banned in 11 out of the 22 countries of the region in 2017.³²⁸ However, the situation is dramatically changing with Saudi Arabia, one of the leading tobacco control countries in the region, reverting its legislation and allowing electronic cigarettes, raising fears that a domino effect will take place allowing the product in the rest of EMR.³²⁹ The industry is using number of interferences to promote these products such as lobbying policy makers and targeting youth with false information and by adding favourable flavours to its products.³³⁰

Corporate social responsibility activities

Tobacco industry maneuvers to manipulate public opinion to gain the appearance of respectability happen across the countries in the EMR. For example, funding the education of women from Afghanistan in western universities by British American Tobacco;³³¹ donating to cancer screening and treatment hospital in Egypt by Eastern Company for Tobacco;³³² and funding projects for education in Pakistan, Jordan, Lebanon, Morocco, and Palestine by Philip Morris International.³³³ Additionally, the industry sponsor popular sports such as the Egyptian Eastern Company for Tobacco sponsoring a football team carrying its name and playing in the Egyptian football league.³³⁴Multinational companies also sponsor sport teams to brand their products such as British American Tobacco branding their electronic cigarette on McLaren cars (motorsports team) in the Bahrain Grand Prix, and Philip Morris International using Ducati (motorcycle team) for branding at the Qatar MotoGP.³³⁵

Use of influencers and allies

A clear example of this well-practiced tactic is the visit of prominent doctors from number of Egyptian medical schools to a Philip Morris International factory in Switzerland, and then posting on social media about the visit claiming that it was supported by the WHO to check a new product of the company that has no side effects. The WHO issued a press release to condemn the incident and to deny any support to such tobacco industry maneuvers. The doctors removed the post from social media after the WHO press release.³³⁶The industry is also active in approaching universities to keep its presence among youth and to recruit best qualified graduates in the region to keep growing. For example, British American Tobacco is listed as partner to the American University in Cairo in conducting employment fairs, After conducting such meetings, BAT publish news about it, which gives the impression that they are linked somehow to this prestigious university.³³⁷²⁸⁴

Generating industry-funded science

The tobacco industry use of research and policy forums is a well-known strategy to influence policy-making processes. In the EMR there is an example of funding research institute in Pakistan with thousands of dollars to conduct studies in the field of tobacco. This fund from the Foundation for a Smoke-Free World, which is a Philip Morris International funded organization. There are also examples of think tanks in the EMR that are allied with the tobacco industry which are the Egyptian Center for Public Policy Studies and the Pakistani Policy Research Institute of Market Economy. Both think tanks opposed plain packaging of tobacco products despite the fact that it is an evidence based public health tobacco control intervention.³³⁸

Benefiting from emergencies and political instability

Tobacco industries look to use political instability as an opportunity to increase illicit trade and shape tobacco control policies in their favour. A number of countries in the region requested that tobacco control in protracted complex emergency situations should be an item for discussion during the COP of the WHO FCTC.³³⁹ As a result of such discussion, the COP made a specific decision in this regard aiming to providing technical and financial assistance to countries in protracted complex emergency situations, and requesting countries to pay special attention to Article 5.3 of the WHO FCTC and related Guideline.³⁴⁰

Tobacco Tactics resources

• JTI Involvement in Smuggling
• Gallaher Versus its Cypriot Distributor
• CSR Strategy
• Motorsport Sponsorship
• Foundation for a Smoke-Free World
• Think Tanks

References

The post Eastern Mediterranean Region appeared first on TobaccoTactics.