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Stanton A. Glantz, PhD Eric Crosbie , MA University of California, San Francisco

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. Tobacco Companies.

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Stanton A. Glantz, PhD Eric Crosbie , MA University of California, San Francisco

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  1. HowtheTobaccoCompanieswill use theTrans-PacificPartnershipAgreementto Block Sensible PublicHealthPolicies Stanton A. Glantz, PhD Eric Crosbie, MA University of California, San Francisco 13th 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 21st 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&regionCode=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. -DearloveJV, 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/ -NottageL. 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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