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How the Tobacco Companies will use the Trans-Pacific Partnership Agreement to Block Sensible Public Health Policies Stanton A. Glantz, PhD Eric Crosbie,

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Presentation on theme: "How the Tobacco Companies will use the Trans-Pacific Partnership Agreement to Block Sensible Public Health Policies Stanton A. Glantz, PhD Eric Crosbie,"— Presentation transcript:

1 How the Tobacco Companies will use the Trans-Pacific Partnership Agreement to Block Sensible Public Health Policies Stanton A. Glantz, PhD Eric Crosbie, MA University of California, San Francisco 13 th Round of TPP Negotiations July 2, 2012

2 Tobacco Companies Sell 6 trillion cigarettes annually Kill 5.4 million annually By 2030 will kill 8 million annually 1 billion deaths expected for 21 st century 80% of smokers now live in developing world WHO Tobacco Facts: http://www.who.int/tobacco/mpower/tobacco_facts/en/index.html

3 Tobacco Control Policies Work Smokefree policies Marketing bans Increased taxes Warning labels Prevent smoking and encourage cessation Improve health – Rapid impacts on heart disease Cost multinational tobacco companies billions

4 Tobacco Companies Bigger Than Most Countries British American Tobacco – $50 billion annual sales Philip Morris International – $66 billion annual sales – Larger than 139 countries’ GDP -CIA World Factbook: https://www.cia.gov/library/publications/the-world- factbook/rankorder/2001rank.html?countryName=Australia&countryCode=as®ionCode=aus&rank=19#as -Global Tobacco Industry: http://seekingalpha.com/article/237020-global-tobacco-industry-cigarette-cos-go-their- separate-ways-in-battling-regulation

5 Preemption Eliminate authority of governments to implement sensible public health policies to protect their people Local clean indoor air Companies routinely sue claiming preemption – Even when not there – Raise cost of protecting the public – Deter action Bully governments -Nixon ML, Mahmoud L, Glantz SA. Tobacco industry litigation to deter local public health ordinances: the industry usually loses in court. Tob Control 2004;13(1):65-73. -Dearlove JV, Glantz SA. Boards of Health as venues for clean indoor air policy making. Am J Public Health 2002;92(2):257-265.

6 The tobacco companies will argue that the TPP preempts all tobacco regulation

7 Tobacco companies threaten governments even when their lawyers tell them they don’t have a case Tobacco Company Plain Pack Group July 1994 tid/mjk78a99

8 Success in Bullying Governments In 1994 threatened governments with multi- billion lawsuits for damages Governments withdrew proposals for plain packaging out of fear of losing in court – Australia (Paris Convention, WTO, TRIPS) – Canada (Paris Convention, WTO, TRIPS, NAFTA) Delayed these innovations for decades

9 Current Attacks on Public Health Domestic Tobacco Control Policies – Uruguay-Graphic Health Warning Labels covering 80% (2008) – Australia-Plain Packaging (2012) – Other governments seeking plain packaging (ex. New Zealand) PMI Bilateral Investment Treaty Challenges – Uruguay-Switzerland BIT – Australia-Hong Kong BIT -Porterfield MC. Philip Morris v. Uruguay: Will investor-State arbitration send restrictions up in smoke? http://www.iisd.org/itn/2011/07/12/philip-morris-v-uruguay-will-investor-state-arbitration-send-restrictions-on-tobacco- marketing-up-in-smoke/ -Nottage L. Investor-state Arbitration Policy and Practice after Philip Morris v Australia. http://blogs.usyd.edu.au/japaneselaw/2011/06/isa_claim.html

10 PMI involvement during TPP negotiations PMI lobbying USTR – 2010-Submitted comments for ISDS mechanism PMI searching for new avenues to block public health policies PMI lobbying TPP member countries – 2012-Sponsored a closed meeting with trade representatives from TPP member countries Violates WHO FCTC Article 5.3 -Submission of Philip Morris International in Response to Proposed Trans-Pacific Partnership Trade Agreement. 6 January 2010 Available at: http://donttradeourlivesaway.files.wordpress.com/2011/04/ustr-phillip-morris-submission.pdf. -United States Trade Representative. Free Trade Agreements: Trans-Pacific Partnership. 2012.

11 TPP Investor Rights Investor-state dispute settlement (ISDS) mechanism Allows foreign companies to “directly” sue governments Will unleash tobacco companies

12 Solution for Tobacco in TPPA Ambiguous language creates opportunities for the tobacco companies’ lawyers to exploit Simplest and best solution is complete carve out tobacco


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