TPPA and Tobacco Products: A Threat to Public Health and The Case for Excluding Tobacco Products

1. TPPA Stakeholder Forum Chicago September 10, 2011 TPPA and Tobacco Products:A Threat to Public Health and The Case for Excluding Tobacco Products Susan Liss Executive Director Campaign for Tobacco-Free Kids

2. Who is CTFK? • Over the last 15 years, CTFK has played a major role in enacting tobacco control measures at the state, federal and international levels. • In the USA, CTFK coordinated advocacy efforts that resulted in • Congress granting FDA authority to regulate tobacco products • Largest federal tobacco tax increase in history • Restrictions on distribution of cigarettes through the mail • Globally, CTFK was heavily involved in negotiations around the WHO Framework Convention on Tobacco Control, the world’s first public health treaty. • As one of five partners in the Bloomberg Initiative to Reduce Tobacco Use, CTFK has provided technical or financial assistance in 85 low- and middle-income countries.

3. CTFK Mission • Reduce Tobacco Use & Its Toll on Health by: • Preventing youth from starting to smoke, dip, chew • Helping tobacco users quit • Protecting everyone from secondhand smoke • Saving lives and healthcare dollars

4. Trade and Tobacco Control:Irreconcilable Conflict? • More consumers • More products • Lower prices Free Trade Goals Tobacco Control Goals • Fewer tobacco consumers • Fewer tobacco products • Higher tobacco prices

5. Why? • Chile • Australia • Tobacco products are uniquely hazardous and highly addictive consumer products. • Brunei • Malaysia • USA • New Zealand • Peru • Singapore

6. Tobacco Products are the only consumer products that kill when used as directed.

7. Tobacco is Addictive and Use Starts Mainly Among Children “The ability to attract new smokers and develop them into a young adult franchise is key to brand development.” 1999 Philip Morris report, "Five-Year Trends 1988-1992."

8. In the 20th Century, tobacco products killed 100 Million people worldwide.

9. In 2010, tobacco products killed nearly 6 Million people worldwide.

10. Unless government takes dramatic steps…

11. By 2030, 80% of tobacco-caused deaths will be in developing countries.

12. Without action to stop this epidemic, In the 21th Century, tobacco products will kill 1 Billion people worldwide.

13. High health-care costs • $96b: U.S. annual public and private health care expenditures caused by smoking • Tobacco-caused deaths result in lost economic opportunities because half of these deaths occur during prime productive working years. • $97b: U.S. annual productivity loss caused by smoking . Tobacco Devastates Economies

14. The world’s first public health treaty • Only treaty designed to reduce use of a consumer product • 184 countries have signed, ratified or acceded • All TPP trade partners are signatories World Reacts to the Crisis

15. Parties Obligations Under the FCTC • Requires effective measures to reduce tobacco supply and demand including: • Strong health warnings on packs • Elimination of misleading packaging and labeling that likely creates the false impression about the product’s health effects • Comprehensive ban on tobacco advertising, promotion, and sponsorship • 100% smoke-free indoor public places, indoor workplaces, and public transportation • Unanimously-adopted guidelines detailhow Parties can meet their obligations

16. Tackling global health crisis caused by increase of cancer, heart disease, lung disease and diabetes • Second time in U.N. history that the General Assembly will meet with Heads of State on an emerging health issue • WHOs Global Status Report on NCDs (Apr. 2011) lists tobacco control policies as 4 of 10 “Best Buys” • U.N. High Level Meeting • on Non-Communicable • Diseases (NCD) New York. Sept. 19-20 World Reacts to the Crisis

17. A Sample* of FCTC Protections by TPP Partners • Australia • Competition and Consumer Act (2010) • Trade Practices (Tobacco) Regulations 2004 (as amended) • Tobacco Advertising Prohibition Act (1992) • Brunei • Tobacco (Labeling) Regs. No. S 37 (2007) • Tobacco Order No. S 49 (2005) • Chile • Law 20105 (2006) • Decree No. 95 on Warnings on Packages (2006) • Malaysia • Control of Tobacco Product (Amdt.) 2008 • MoH Statement on Enforcement of Pack Size (2010) • New Zealand • Act No. 108 of 1990 on Smoke-Free Environments (as amended) (2009) • Act No. 141 of 1985 on Goods and Services Tax (as amended) (2009) • Singapore • Tobacco (Control of Advertisements and Sale) Act (Cap. 309) (as amended 2010) • Environment Public Health Act (2010) • Peru • Law No. 29517 Amending General TC Law (2010) • Ministerial Res. No. 097-2010 Establishing New Graphic Warning (2010) • United States • Family Smoking Prevention and Tobacco Control Act (2009) • State Department Directive on Tobacco Policy (2000) • Executive Order 13193 (2001) • Doggett Amendment (1997) • Vietnam • Decision No. 1315/QD-TTg on the Ratification of the plan for the Implementation of the FCTC  (2009) • Prime Minister Directive No. 12/2007/CT-TTg  (2007) *Non-exhaustive list of laws

18. Countries’ Tobacco Control Efforts are Saving Lives U.S.A. • Smoking rates in the U.S. have dropped dramatically over the past several decades, falling from 42.4% in 1965 to 19.3% in 2010. • Fewer U.S. adults are smoking, and those who do smoke are, on average, smoking less. • Reductions in smoking have helped reduce the rates of cancer, heart disease, and other illnesses. • But tobacco still kills more than 400,000 Americans each year.

19. Countries’ Tobacco Control Efforts are Saving Lives Australia Over two decades of tobacco control efforts, including advertising bans, strong graphic health warnings, and smoke-free environments

20. Countries’ Tobacco Control Efforts are Saving Lives New Zealand Daily smoking among those aged 15–64 years, 1997–2009 (age-standardised prevalence) As early as 1984, the Government instituted a tobacco control program and has consistently regulated tobacco products. Data sources: 1997 = 1996/97 New Zealand Health Survey (NZHS); 2003 = 2002/03 NZHS; 2007 = 2006/07 NZHS; 2008 = 2008 New Zealand Tobacco Use Survey (NZTUS); 2009 = 2009 NZTUS Note: Age standardised to the WHO world population.

21. Trade Challenges to Domestic Public Health Laws 1995: RJR threatens Canada under NAFTA over plain packaging 2008: PMI subsidiary v. Turkey over packaging claiming violation of Paris Convention and TRIPS 2009: PMI v. Ireland in EU over retail display ban 2010: PMI v. Uruguay under BIT over packaging 2010: Indonesia v. US under WTO over cloves 2010: PMI v. Norway in EU over retail display ban 2011: PMI threatens Australia over plain packaging

22. Trade Challenges to Domestic Public Health Laws 1995: RJR threatens Canada under NAFTA over plain packaging 2008: PMI subsidiary v. Turkey over packaging claiming violation of Paris Convention and TRIPS 2009: PMI v. Ireland in EU over retail display ban 2010: PMI v. Uruguay under BIT over packaging 2010: Indonesia v. US under WTO over cloves 2010: PMI v. Norway in EU over retail display ban 2011: PMI threatens Australia over plain packaging

23. Threats of an International Trade Dispute Create a Chilling Effect Causing countries to back away from enacting tobacco control laws.

24. The TPAA Should be the First Trade Agreement to Recognize that Controlling the Global Tobacco Epidemic Requires a Change to Trade Priorities TPPA Should Reprioritize Public Health

25. The Easiest Solution • Exclude Tobacco Products from the TPPA and Acknowledge that Public Health Goals Take Precedence over Trade Goals

26. Other Solutions Are Complicated and Less Effective • A clear exception for tobacco products • from relevant provisions • (TBT, IP, investor-state, transparency, etc) • would be a marked improvement • BUT • This approach permits second-guessing • of legitimate, good faith efforts • as being more trade restrictive than necessary • and could create new or unintended complications.

27. Exclude Tobacco Products • Anything other than • exclusion of tobacco products • may continue the chilling effect • of threatened lawsuits, • preventing countries from • enacting public health protections • for their citizens.

28. Thank You. Susan Liss Executive Director sliss@tobaccofreekids.org +1-202-296-5469 www.tobaccofreekids.org