Tobacco Asia

Volume 19, Number 3

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14 tobaccoasia FRONT PAGE NEWS 卷首新闻 reduction in incidence of illicit tobacco products in Nigeria, with a reduction from about 80% share of the market when we first came in, to less than 20% as of 2015, thereby supporting the reclaiming of government revenue lost through illegal tobacco marketing channels," said Messanvi. Canada Big Three Fight Ruling Three major tobacco companies will appeal against a decision by a Canadian court demanding that they pay C$15.5 billion (US$12.5 billion) in damages to smokers in Quebec, following a 17-year legal battle. The decision came at the climax of two class-action lawsuits originally brought in 1998 against Imperial Tobacco Canada, owned by British American Tobacco; Rothmans, Benson & Hedges (RBH), owned by Philip Morris Interna- tional (PMI); and Japan Tobacco's JTI-MacDonald. The cases only went to trial in 2012. One was launched by smokers who said they had been unable to quit, the other by a group who became seriously ill as a result of smoking. Heard together, the two lawsuits comprised what was described as the biggest civil case in Canada's history. The individual awards range from C$100,000 for any plaintiff with cancer who started smoking before January 1976, to approxi- mately C$130 for any of the almost one million Quebec smokers who claim they were incapable of quitting. The three firms immediately an- nounced they would appeal against the decision, arguing that Canadians have had a "high awareness" of the health risks of smoking for several decades. "That awareness has been reinforced by the health warnings printed on every legal cigarette package for more than 40 years," JTI-Macdonald said in a statement. Commenting on today's ruling, RBH spokesperson Anne Edwards said: "These cases are far from over. We will vigorously appeal this lower court's judgment, and believe that we have very strong legal grounds to overturn the Most illegal tobacco is from First Nation reserves, many of which have opposed legislative attempts to crack down on the trade. They argue smoke shops provide employment on reserves, where work is often hard to find. What's more, they say trading tobacco is within their rights because they were using it long before the commercial manufacturing of cigarettes. Canadian and provincial laws reflect this, to a degree. Ontario's Tobacco Tax Act gives First Nations the right to sell cigarettes, allocated from government- approved wholesale providers, tax-free on reserves, but they can only be sold to First Nations people for personal use. Thailand Bill to Raise Cig Age The minimum age to buy cigarettes would be raised to 20 and other tougher controls would be enacted under a tobacco-control bill endorsed by the Thai cabinet. The cabinet recently approved legislation that would also outlaw the sale of individual cigarettes, requiring people to buy them by the pack. The bill would also ban manufacturers and importers from sponsoring social activities, and models promoting their products would be prohibited. Deputy government spokesman Maj Gen Sansern Kaewkumnerd said the draft would be sent to the council of state to double-check it adheres to guidelines issued by the World Health Organization. The Action on Smoking and Health Foundation expressed no concerns about the decision to allow the state legal-advisory agency to review the draft, saying it was only procedural. Dr Prakit Vateesatokij, executive secretary of the foundation, said raising the age of buyers will deter youths from smoking due to the increased difficultly of accessing smokes. Thailand has 11.5 million smokers and sees 100,000 new young smokers start every year. If approved, the bill will replace current tobacco-control and health protection laws on the books since 1992. judgment in its entirety. Plaintiffs sought money for over a million people but not a single class member, in nearly three years of trial, testified under oath. Not one showed up to say that he or she was unaware of the risks of smoking. The evidence at trial, including the government's own polling and state- ments, demonstrated that the Canadian public has been aware of the risks of smoking for many decades. The trial court explicitly acknowledged this but nonetheless held RBH liable to those who chose to smoke in light of these well-known risks." For decades, RBH has operated under one of the most comprehensive sets of regulations in the world. Federal and provincial governments have long recognized the serious health risks of smoking and have strictly regulated the manufacture, sale and marketing of the product. RBH's parent company, PMI is not a party to these cases and is not liable for any portion of the judgment. Ontario in Illigal Tobacco Sales According to a recent KPMG study, Ontario is second only to Panama when it comes to selling illegal tobacco in the Americas. The KPMG report found that 31% of tobacco sold in Ontario is illegal, putting the province on par with El Salvador. In Panama, 60% of tobacco sales are illegal. The report also says 12% of illegal tobacco products sold in Mexico now come from Canada. Imperial Tobacco says the Canadian government loses $2 billion a year in unpaid tobacco taxes. Caroline Ferland, vice-president of corporate and regulatory affairs for Imperial Tobacco Canada commented: "The sale of illegal cigarettes in Ontario has not only continued to infiltrate communities across the country, but the criminals who produce these illegal products have expanded into new markets throughout the Americas." The police say the illegal trade has been linked to human trafficking and drug and arms trading, and that illegal cigarettes are often sold to minors.

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