Mechanisms for influencing marketing initiatives
Health(c): Marketing and Youth Conference
World Health Organization - Noncommunicable Diseases and Mental Health
April 17-19 2002
Fabrica, Treviso, Italy
Prakit Vathesatogkit M.D. ABIM. FRCP.
Mahidol University
ASH Thailand
Thai Health Promotion Foundation
deanra@mahidol.ac.th
Click here to download the original power point presentation from the WHO site.
The Relationship between cigarette consumption and global trade.
Reduce trade barriers had
- A large and significant impact on cigarette consumption in low-income countries
- A small but significant impact in middle-income countries
- No significant impact on high-income counties
Bettcher & Yach 2000
Existing Bilateral & Multilateral Trade Agreement
National
- US Trade Act. Section 301
Regional
- Asean Free Trade Area (AFTA)
- North American Free Trade Area (NAFTA)
Global
- World Trade Organization (WTO)
- General Agreement on Tariffs and Trade (GATT)
- Trade-Related Aspects of Intellectual Property Rights (TRIPS)
- Agreement on Technical Barriers to Trade (TBT)
- General Agreement on Trade in Services (GATS)
Why special rules in international trade should be applied for tobacco products:
- Tobacco products harm public health and the global economy
- Liberalization of trade in tobacco products stimulate tobacco consumption and harms public health.
- Major multilateral trade agreements do not adequately protect tobacco control measures from trade-based challenges.
- There is precedent in other international agreements for provision to restrict trade in particularly harmful products such as tobacco.
Campaign for Tobacco-Free Kids
1989
USCEA's petition to USTR to negotiate for the opening of Thailand cigarette market under Section 301 of the US Trade Act (1974) Demanded Thailand to
- Lift the import ban on foreign cigarettes
- Removal of discriminatory taxes
- Allow free distribution system
- Repeal of law banning cigarette advertising.
USTR's position
- Thailand's ban of import was unfair to US products.
Thailand's position
- Import ban was necessary to prevent competition & increased consumption.
1990
- GATT adjudication and ruling
- Thailand's import ban was contrary to GATT charter
- the advertising ban was justified under Article XX(b)
Thai government prepared to open the cigarette market to avoid trade retaliation by the US
The Tactic of using “Moral counter claim” to shape policy on “demerit” goods
1988 Thai Cabinet
- approved plan to modernize TTM's cigarette producing machines
“Counter Claim”
- ban of cigarette advertising
1990 Thai Cabinet:
- lifted the import ban
“Counter Claim”
Approved
- the Tobacco Product Control Bill
- setting up tobacco control office in MOPH
1993 lobby for “Tax for Health” policy
A 10% increase in the real price of tobacco through taxation in Thailand
....would lead to a 10% decrease in adolescent smoking, This would mean that 75 400 more of current (15-19 year-olds) would never start to smoke, .... and 9425 future deaths of today's Thai adolescents would be prevented.
1994 the ASEAN Free Trade Area (AFTA)
Objectives :
- liberalizing trade
- competitiveness of ASEAN products
the CEPT scheme : a tariff reduction scheme for trade within the region will reduce tariff rates to 0-5% by 2003
Import Tax from non-ASEAN countries = 60%
Results :
- Migration of Transnational Tobacco Companies to ASEAN countries
- Price war between TTM & TTCs
“Counter Claim”
Exclude tobacco from
- AFTA trade list
- Duty free shops
Survey of 1,360 female high school and vocational students in Bangkok (1997)
- Smoking rate = 4.9%
(National rate = 0.3%) - Foreign brands as brand of choice = 80%
- Marlboro as brand of choice = 66.7%
[Young female preferred foreign brand more than young male]
Dear Minister Sudarat :
Philip Morris (Thailand) Limited wishes to express its strong support for programs that address the issue of underage smoking. ..... We believe it is important that our position is made clear .... We don't want kids to smoke
- Paul R. Dillman, Jr.
1995-2002
Thailand's Cigarette Ingredient Disclosure dispute.
Ministerial Regulation requiring cigarette manufacturer to disclose their cigarette ingredients in 1998
Result:
- the ingredient submitted by cigarette companies have to be kept secret and can not be disclosed to the public.
MOPH:
- Foreign cigarette companies claim “violation of TRIPS”
- Evade to answer the question why Canada can do it
the International Monetary Fund (IMF)'s pressure on the Thai Government to privatize the Thailand Tobacco Monopoly as one condition for loans to rescue Thailand's economic crisis.
“Counter Claim”
- Exclude tobacco monopoly from privatization list
- Plain packaging (2001)
Achieving a dedicated tax for Health Promotion
1999
Thai Cabinet :
- liberalize the alcohol market
- direct the MOF to find ways to reduce the impact of market liberalization.
“Counter Claim”
- approved setting up a Health Promotion Office (2000)
- approved the Health Promotion Bill
2002
The National Committee for the Control of Tobacco Use backed down on tobacco control advocate's proposal for regulation on “generic packaging” on tobacco products. “do not want confrontation with the US Trade Representative and do not want to go to WTO for dispute settlement, it's not worthwhile”
Lessons Learned
Tobacco control advocates should be vigilant to opportunities to make “counter claims” when any issue related to tobacco is being debated and issue of balance considered.
In lobbying for legislation & tax increases, it should be stressed that the objective is to prevent youth from becoming addicted to tobacco.
Any policy initiative which may effect marketing mechanisms of goods could be challenged for it's legitimacy under WTO's jurisdiction
The most challenging issue is to convince policy makers to exclude tobacco from international trade laws
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