JTI: 'Hasty' Decisions on the Revised EU Tobacco Products Directive Will Only Lead to Ineffective Legislation

Brussels (ots/PRNewswire) -

Numerous Measures will be Costly for Member States and Businesses

JTI (Japan Tobacco International) today commented on the agreement
reached between the European Commission, Parliament and Council on
the proposal for a revised Tobacco Products Directive (TPD).

(Logo: http://photos.prnewswire.com/prnh/20130528/617491 )

"The TPD has been negotiated hastily, pushed by political agendas,
with little consideration given to the effectiveness of the numerous
measures and the cost entailed for EU Member States and businesses.
Policies that are not supported by strong evidence and that do not
consider market dynamics are bound to fail - they do not deliver any
public health benefits", said Ben Townsend, JTI's Head of EU Affairs.

Many of the measures of the revised TPD are disproportionate and
are a threat to the internal market from an innovation, competition,
consumer choice and cross-border trade standpoint. Thousands of
businesses - wholesalers, retailers, packaging suppliers to name but
a few - will need additional time to absorb these radical changes.

Oversizing health warnings to 65% with pictures positioned at the
top of the pack and standardizing the pack shape and size (minimum of
20 cigarettes per pack and 30 grams for roll-your-own tobacco) will
not work, as people already understand the health risks associated
with smoking. Rather, these restrictions will confuse retailers and
consumers, making it difficult for them to distinguish brands.

It will also be much easier for counterfeiters to produce and sell
cheap cigarettes that are not regulated, not tested, and not taxed.
"The more complex and innovative the packaging is, the more difficult
it is to counterfeit. Simply put, these restrictions will give
counterfeiters a blueprint on how to fake a pack", added Mr.
Townsend.

Like many other measures, the proposal to ban entire product
categories such as menthol cigarettes is not based on any sound
evidence. If consumers are unable to find their preferred products
through legal channels, smugglers will make sure they are available
from the boot of their car.

As a consequence, the TPD will threaten jobs, investment and much
needed revenue in EU Member States. "While the legitimate tobacco
sector directly and indirectly employs around 1.5 million[1] people
across the EU, the illegal trade in tobacco is already costing EU
countries around EUR 12.5 billion[2] a year. This is what is at
stake", concluded Mr. Townsend.

Objections to the TPD have been raised multiple times by EU Member
States, Members of the European Parliament (MEPs) and a number of
important Parliament committees, but it appears their concerns have
fallen on deaf ears. Many of the measures still need to be carefully
considered by EU decision-makers before the Parliament and Council
come to vote for the final time on the TPD in the New Year.

JTI, a member of the Japan Tobacco Group of Companies, is a
leading international tobacco manufacturer. It markets world-renowned
brands such as Camel, Winston and Mevius (Mild Seven). Other global
brands include Benson & Hedges, Silk Cut, Sobranie, Glamour and LD.
With headquarters in Geneva, Switzerland, and about 27,000 employees
worldwide, JTI has operations in more than 120 countries. Its core
revenue in the fiscal year ended December 31, 2012, was USD 11.8
billion. For more information, visit http://www.jti.com

For further information, please contact:

Ben Townsend
JTI EU Affairs Office
Tel: +32-2-626-24-75
e-mail: ben.townsend@jti.com

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1. Nomisma report June 2012

2. Project Star report, KPMG: 16 April 2013

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ots Originaltext: JT International SA
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