Global Tobacco Industry Interference - Index 2021

Page created by Corey Perkins
 
CONTINUE READING
Global
Tobacco
Industry
Interference
Index 2021
ACKNOWLEDGEMENTS                                          Foundation and the Bill and Melinda Gates Foundation
                                                          also contributed to the development of the report.
Author: Mary Assunta                                      GGTC is a joint initiative of the School of Global Studies
                                                          at the Thammasat University and SEATCA.
Editors: E. Ulysses Dorotheo, Yodhim Dela Rosa,
Erin Sandberg                                             Design: sophieeverett.com.au
Additional editorial input: Vital Strategies              Funding: This publication is funded
and the Global Center for Good Governance                 by Bloomberg Philanthropies.
in Tobacco Control
                                                          Suggested citation: Mary Assunta. Global Tobacco
Global Tobacco Industry Interference Index                Industry Interference Index 2021. Global Center
(the Index) is a global survey on how governments         for Good Governance in Tobacco Control (GGTC).
are responding to tobacco industry interference and       Bangkok, Thailand. Nov 2021.
protecting their public health policies from commercial
and vested interests as required under the World Health   Disclaimer: This Index is based solely on publicly
Organization Framework Convention on Tobacco              available information obtained by collaborators in their
Control (WHO FCTC). The report was initiated as           respective countries. If you have information that can
a regional index by Southeast Asia Tobacco Control        strengthen this report, contact us at: info@ggtc.world
Alliance (SEATCA) in 2014. The Index is produced by
                                                          For more information visit:
the Global Center for Good Governance in Tobacco
Control (GGTC), a partner in STOP, with support from      www.exposetobacco.org
Bloomberg Philanthropies. The Thai Health Promotion       www.globaltobaccoindex.org
Contents
             02                              06                        08
          Introduction                    Key Findings          01. The tobacco industry
                                                                  interfered in policy
                                                                    development and
                                                                     implementation

            14                               17                        20
   02. The tobacco industry’s            03. The tobacco            04. Inappropriate
pandemic-related corporate social       industry received         interactions occurred
  responsibility (CSR) activities         incentives that        between governments
enhanced access to senior officials   benefitted its business        and the industry

             26                              29                        34
         05. Transparency               06. Public officials      07. Governments can
        and accountability               faced conflicts of     protect themselves from
            decreased                   interest situations       industry interference

             41                              42                        44
           Conclusion                  Recommendations              Summary Table

             56                              60
           Appendix A                       Endnotes
02   STOP

                           In a global pandemic, where
                           smoking is a risk factor
                           for severe coronavirus
                           (COVID-19) disease, the
                           tobacco industry (TI)
                           continued producing,
                           distributing and selling
            Introduction

                           its harmful products.
                           While governments have the power to tighten
                           regulations on the industry, unfortunately, the opposite
                           seems to have happened in these trying times. In
                           many countries, governments have protected and
                           even promoted the TI. Tobacco is already responsible
                           for about 8 million annual deaths globally1 and health
                           and productivity losses cost around US $1.4 trillion
                           every year.2 Yet, governments were persuaded to
                           accommodate the demands and lobbying of this harmful
                           industry and accept its charity as shown in the Global
                           Tobacco Industry Interference Index 2021 (the Index).

                           Although governments identified tobacco industry
                           interference as a main obstacle3 to their efforts to
                           implement tobacco control measures, many became
                           vulnerable to the industry’s tactics, succumbed to its
                           interference and compromised on their policies to
                           protect public health from commercial interests.

                           Several governments were persuaded by the doubletalk
                           of transnational tobacco companies such as Philip Morris
                           International (PMI), British American Tobacco (BAT)
                           and Japan Tobacco International (JTI), which offered
                           new tobacco products for approval and claimed they
                           were moving away from cigarettes. In reality, they were
                           selling more cigarettes and simultaneously obstructing
                           government regulatory efforts that would affect
                           cigarette sales.
Global Tobacco Industry Interference Index 2021   03

The TI exploited the COVID-19 pandemic with a multi-           This Index is based on publicly available information
pronged tactic to entice, persuade and coerce governments      on TI interference in countries and their respective
towards weaker public health policies. Many governments,       governments’ responses to this interference for the
made vulnerable by the pandemic, freely accepted and           period of January 2019 to March 2021 for 23 new
endorsed charity from the TI, when such donations              countries, and January 2020 to March 2021 for the 57
often come with strings attached, and compromised on           countries updating their reports. Since the information
policies. Instead of removing benefits to the industry, many   was collected during the COVID-19 pandemic, many
governments made decisions that benefited the industry,        of the key findings are directly related to pandemic
particularly in lowering or not imposing taxes and delaying    decision-making. The countries are ranked (Figure
legislation or its implementation.                             1) according to total scores provided by civil society
                                                               groups, which prepared their respective country indices.
Many government officials met with industry executives         The lower the score, the lower the overall level of
in a non-transparent manner and were persuaded to              interference, which augurs well for the country. The
allow this business to function as “essential” during the      Summary Table (p.44) provides disaggregated scores for
pandemic lockdowns. Conflict of interest situations            each country.
rendered officials vulnerable to accept proposals from the
industry and view it as a “partner” of economic recovery       This Index shows that while no country has been
rather than a burden to public health and society.             spared from TI interference, even in the most
                                                               challenging of times some governments acted boldly
This Index, the third in the series, documents the status      to address the interference. Eighteen countries
of government efforts in implementing the World                have made improvements in protecting their health
Health Organization (WHO) Framework Convention                 policies, especially in applying greater transparency, not
on Tobacco Control (FCTC) Article 5.3. Article 5.3 and         collaborating with the industry and adopting guidelines
its Guidelines outline how governments can protect             to provide a procedure for interaction with the industry.
public health policies from commercial and other
vested interest of the TI and those who further its
interests.4 Governments that followed these Guidelines
were better able to safeguard their tobacco control
efforts during the pandemic, while governments that
didn’t found their efforts being undermined, delayed or
defeated by the industry.

The first Index in 2019 reviewed 33 countries,5 the
second Index reviewed 57 countries6 and this third
Index reviews 80 countries from Africa, the Eastern
Mediterranean region, Latin and North America,
Europe, South and Southeast Asia and the Western
Pacific region. It ranks the countries using the same
questionnaire and scoring method as the ASEAN Index
developed by the Southeast Asia Tobacco Control
Alliance (SEATCA).7
04    STOP

      Figure 1: Tobacco industry
      interference overall country ranking

                                                                                                                                       96
                           15 Brune

                                                                                                                                public
                               32 U

                                30 Ne

                                                                                                                        ican Re
                                                                                                                           d 92
                                   i Dar ussala
                                    nited
                                    35

                                       w Zeal

                                                                                                                    er lan
                                        Th

                                                                                                                      83
                                          33
                                          Kingd

                                                                                                               Domin

                                                                                                                 n 88
                                           e N Mon

                                           34

                                                                                                                    0
                         39

                                                                                                                  sia
                                                                                                     R o r gia 8
                                                                                                              Switz

                                                                                                                 79
                                              Fran

                                                                                                              one
                                               eth

                                               and
                                               38 mic nya

                                               Uga ds
                                               Ira

                                                m

                                                                                                            Japa
                                                 om

                                                                                                             nia
                                                  n,

                                                   er l

                                                                                                          Ind
                                                    ce

                                                                                   0

                                                                                                            o
                                                     nda
                                                     Isla

                                                                                                         ma
                                                                                                        Ge
                                                       an

                                                                                                        78
                                                                                                 m 9
                                                                                                        7
                                                                                   10

                                                                                                                                           78 77
                                                          go .

                                                                                                   b ia
                                                           39

                                                                                                     ly
                          40
                                                            lia

                                                                                                 Ita
                                                                                   20
                                                             Re

                    41                                                                                                                   n
                                                                                                                                       a      in a
                                                                Ke

                                                                                              Za
                                                                                                                                    rd
                                                                 p

                           Th Pala                                                 30
                                                                                                                                  Jo gent 6
                             a
                                                                                                                                      A r .A 7
                                  u                                                                                                                          6
                       43 iland
                                                                                   40
                                                                                                                                                         a7
                  44 Israe                                                         50                                                      U.S ombi
                                                                                                                                                 l
            44         Ne      l                                                   60                                                        Co a 76
                 N o p al                                                                                                                           in
         45           rw                                                           70                                                           Ch           a 73
             Sri L ay                                                                                                                               a n zani
                                                                                   80                                                              T            2
          47 O ka
                    an                                                                                                                                    ey 7
                                                                                   90
                                                                                                                                                     Tur k
                  man                                                                                                                                          on 72
     48 C                                                                                                                                             Leban
                                                                               100
           osta R                                                                                                                                                  72
                    ica                                                                                                                                 Lao PDR
        4 8 G abo
                     n                                                                                                                                   Guatemala 72
      48 Maldives
                                                                                                                                                          Bangladesh 72
      48 Pakistan                                                                                                                                         Ecuador 71
     49 Cambodia                                                                                                                                         Paraguay
                                                                                                                                                                       69
                     ia                                                                                                                                 Germ
       49 Ethiop                                                                                                                                                   any 68
               uguay                                                                                                                                   Boliv
        49 Ur                                                                                                                                                  i a 67
                       na                                                                                                                             Mal
            B o tswa                                                                                                                                       aysi
                                                                                                                                                                 a 66
        50              ire                                                                                                                         U kr
              e  d’Ivo a                                                                                                                                 aine
          Cô t
                        agu
                                                                                                                                                   So
                                                                                                                                                     u           64
      50           icar an                                                                                                                      Mo th Afr
                 N
            50           Sud a                                                                                                               Ira zamb ca 64
                                                                                                                                                              i
                    51        ad                                                                                                                q
                                                                                                                                                  6      i qu
                            an ria                                                                                                       Eg
                          C                                                                                                                 yp 4              e6
                      53 Nige r u                                                                                                              t6                  4
                                  e                                                                                                               4
                                                                                   So akh

                          53 3 P
                                                                                     lom sta
                                                                                      Ka c h R
                                                          d

                                5
                                                       lan

                                                                                        z
                                                        r

                                                                                        Cz

                                                                                        o n n 63
                                           My vado
                                                     Po

                                                                                           Ven uras
                                          Sen ar

                                                                                           e

                                                                                           Isl
                           53

                                                nm

                                                                                              Ho

                                                                                              an
                                                   l
                                                  l

                                              ega
                                               Sa

                                                                                                e
                                                                                                The
                                              in

                                                                                                 ds
                                              a

                                                                                                  z
                                            ep.

                                                                                                  Pana

                                                                                                  nd

                                                                                                   e
                               El

                                          Spa

                                                                                                    uel
                                                                                                    Fiji 58

                                                                                                    63
                                      exico

                                                                                                     pu
                                                                                                     Brazil 58
                                         ile

                                                                                                      Vietnam 57
                            54

                                                                                                      India 57
                                      ea, R

                                          a
                                                                 57 Burkina Faso

                                                                                                       Phili

                                                                                                       a6

                                                                                                        b
                                56 Ghan
                                 54

                                  56 Ch
                                     54
                                     54

                                                                                                         ma 5

                                                                                                         lic
                                                                                                            0
                                 55 M

                                                                                                             5
                                                                                                             ppin

                                                                                                             61
                                  Kor

                                                                                                               9
                                                                                                                 8

                                                                                                                  es 5
                               55

                                                                                                                       8

      The lower the score,
      the better the ranking                                                            0-9      10-19   20-29   30-39   40-49   50-59     60-69   70-79   80-89   90-100
Global Tobacco Industry Interference Index 2021   05

                             LEAST INTERFERENCE

      15               30              32            33                            34
BRUNEI DARUSSALAM    NEW ZEALAND   UNITED KINGDOM    FRANCE                       UGANDA

                              MOST INTERFERENCE

      96               92              88            83                            80
DOMINICAN REPUBLIC   SWITZERLAND       JAPAN        INDONESIA                     GEORGIA
06   STOP

                           Three governments made progress
                           toward protecting their policies from
                           tobacco industry interference.
                           Botswana published its tobacco control law, which
                           limits interaction between the government and the TI and
                           prohibits partnerships with and giving incentives to the TI.
                           The Indian Health Ministry adopted a code of conduct
                           restricting the collaboration of officials with tobacco
                           industries, while in Cambodia, the Ministry of Education,
                           Youth and Sports banned all forms of partnership
            Key Findings
                           between the TI and educational facilities.

                           Health ministries, hospitals, health
                           workers and law enforcement agencies
                           in many countries were targeted by
                           increased pandemic-related corporate
                           social responsibility (CSR) activities.
                           Seven countries reported not receiving tobacco-related
                           CSR, while many others, including at least six countries
                           with bans or restrictions on tobacco-related CSR
                           activities, accepted charity from the industry during the
                           pandemic. Some departments of health, who are front-
                           liners in treating tobacco-related diseases, welcomed TI
                           donations of ventilators, personal protective equipment
                           (PPE) and funds. Agencies that enforce smoke-free and
                           illicit tobacco trade policies received donations, PPE and
                           ambulances from the TI.

                           Many governments compromised
                           on tobacco tax policies.
                           At least eleven countries that received CSR charity
                           from the industry compromised on their tax policies.
                           Governments accepted TI proposals using the
                           pandemic as a justification to apply lower taxes, provide
                           a longer period in which to pay taxes or not to increase
                           taxes on tobacco. Tax increases were defeated in
                           several countries.
Global Tobacco Industry Interference Index 2021   07

At least 10 governments deemed                                    Governments forged agreements
the tobacco industry and cigarettes                               instead of regulations.
“essential” during the pandemic.
                                                                  The TI effectively secured collaboration with
Governments, national and provincial, allowed the TI to           governments in at least eleven countries through
operate during the pandemic and some deemed cigarettes            agreements, training programs and enforcement
as essential items to be sold during lockdowns. Governments       activities, especially on illicit trade. This is contrary to
that banned tobacco production during lockdown were               the FCTC requirements to limit TI interactions to only
often challenged by “tobacco-friendly” departments to             when strictly necessary for regulation. Collaborative
reverse their decision or were even sued by the industry.         agreements to address illicit trade of tobacco were
                                                                  negotiated in Colombia, the Dominican Republic,
                                                                  Ethiopia, Italy and the Netherlands.

The TI convinced lawmakers in four
countries to treat new tobacco
                                                                  Conflicts of interest arose with
products differently and favorably.
                                                                  former government officials moving
Lawmakers in Kenya, Lebanon, Egypt and Spain                      to the TI, and TI executives moving to
were persuaded to regulate electronic nicotine delivery           policymaking.
systems (ENDS) and heated tobacco products (HTPs)
differently from conventional tobacco products and, in            Lawmakers made themselves vulnerable to industry
some cases, even reverse previous bans on them.                   interference by accepting political donations, being
                                                                  directly involved in the tobacco business or through the
                                                                  “revolving door” of former public officials joining the TI
                                                                  and vice versa. Nine countries reported revolving door
The TI sabotaged tobacco control                                  appointments. In Argentina, Colombia, Fiji, Georgia
legislation in several countries.                                 and Paraguay former tobacco company executives
                                                                  were appointed as senior public officials.
There were delays in the tabling of tobacco control legislation
in Tanzania and Zambia, while the implementation of
existing legislation, particularly prominent pictorial health
warnings (PHW), were postponed in Ethiopia and Bolivia.           Non-Parties faced high levels
Plain packaging legislation stalled in Georgia and Turkey.        of interference.
                                                                  Five countries that have remained non-Parties to the
                                                                  WHO FCTC, namely Argentina, the Dominican
Senior officials in several countries                             Republic, Indonesia, Switzerland and the U.S.A,
promoted the tobacco industry.                                    faced high levels of TI interference that has undermined
                                                                  tobacco control outcomes. These governments
Tobacco companies secured visits for inauguration
                                                                  supported tobacco businesses by providing incentives,
ceremonies at their factories from heads of state,
                                                                  sustaining industry-friendly legislation and promoting the
ministers or other high-ranking officials in Brazil, Fiji,
                                                                  TI internationally.
Germany, Kenya and Zambia. Media publicity of
these visits implies a “stamp of approval” from high offices,
which in turn is likely to compromise future regulation.
Senior officials in Pakistan, Nicaragua and Poland
participated in industry activities related to the economy.
08   STOP

            01
            The tobacco industry
            interfered in policy
            development and
            implementation
Global Tobacco Industry Interference Index 2021   09

Many countries reported their government neither
offers the TI a seat at the policy table nor accepts any
offer for assistance by or in collaboration with the
TI in setting or implementing public health policies.
However, more needs to be done.
Thailand, Kenya, Gabon and Nigeria have legislated               tax increase on tobacco products in 2020.13 There is no
this restriction. However, the TI still found ways to            explicit statement on why the additional tax was not
interfere with policy and delay legislation (see Figure 2).      imposed on tobacco; however, there is a memorandum
The industry’s main tactic was to target non-health              of understanding (MOU) between the National Tobacco
departments to elicit support. Policymakers                      Enterprise and the government to provide technical
succumbed to interference mainly related to tax policy,          assistance and capacity-building training to support the
delaying tobacco control legislation and legalizing new          control of illicit trade.14
tobacco products.
                                                                 In Paraguay the bill proposing higher taxes was
                                                                 defeated three times in five years after accepting input
DEFEATING EFFECTIVE TAX POLICIES                                 from the tobacco industry.15, 16
USING ILLICIT TRADE ARGUMENTS
                                                                 In Argentina, a non-Party to the WHO FCTC, the tax
Despite global tobacco profits, the TI defeated tax              reform law lowered the tax burden on cigarettes, from
increases in Chile, Ethiopia, Malaysia, Paraguay                 75% to 70%, resulting in cheaper cigarettes and enabling
and Tanzania. And, against the recommendations of                bigger companies (BAT and PMI) to earn higher profits.17
the World Bank,8 WHO9 and STOP,10 several other
governments succumbed to TI pressure not to increase             In Colombia, in September 2020, a Congress
tobacco taxes as a measure to support COVID                      representative submitted Bill 339 to create tax
economic recovery (“building back better”).                      benefits for PMI.18

The TI continued to effectively use illicit trade                Evidence obtained through a freedom of information
arguments to influence governments not to increase               request in Germany revealed that between 2018
tax. The industry’s rhetoric is that tobacco smuggling           and 2020, the TI had five meetings with the Ministry
is exacerbated by tax increases and results in losses            of Finance that resulted in an industry-friendly
to government revenue. For instance, BAT met with                “modernization of tobacco taxation” plan19, 20 in
Chile’s Undersecretary of Finance in June 2020 to                February 2021.
discuss “the illicit trade in cigarettes in Chile, the dangers   The TI lobbied governments to maintain inefficient,
to the population, the losses it entails to the State from       multi-tiered taxation systems in Indonesia (12 tiers21
tax evasion and measures to combat.”11 There was no              for cigarettes and kreteks) and Myanmar (four tiers for
tax increase on tobacco after this meeting. Malaysia             cigarettes and two tiers for cheroots). In Pakistan, the
also did not increase tax for the fifth consecutive year         industry was unsuccessful in persuading the government
following an aggressive media campaign by the TI on the          to revert the two-tier tax system back to three tiers.22
growing problem of illicit trade.12
                                                                 In Bangladesh the government did not reduce
In Ethiopia, while the Council of Ministers granted              taxes on bidi23 in the 2020-21 budget, even though
the Ministry of Finance authority to impose a 10% tax            10 parliamentarians called for the Finance Minister to
increase on excisable products each year, there was no           reduce taxes on bidi in September 2020.
10      STOP

        Figure 2: Tobacco industry
        interferes in policy development

                                         2B

                                         1 New Z

                                                                                                                          6
                                            r u ne

                                                                                                                        s1
                                           2T

                                                                                                                    i ne
                                                 1 Nor

                                                                                                                     9
                                                   i Da

                                                    1 Th

                                                                                                               a 18

                                                                                                                   6
                                                                                                          Japan 1
                                                     he

                                                                                                               lipp
                                                                                                              ey 1
                                                      ealand

                                                                                                      a 1 16
                                                        r us s
                                                         Ne carag au

                                                                                               Gu an 16
                                                                                                           Phi
                                                                                                         Chin
                                                          ailand
                                                           way
                                                           2K

                                                                                                            la
                                                                                                       Tur k
                                           2

                                                              the

                                                                                                          a
                                                               alam

                                                                                                         6
                                                                                                     The

                                                                                             Ge tem
                          2

                                                                 N

                                                                                    0
                                                                 eny

                                                                                                       d
                                                                  r lan
                             Un

                                                                   i

                                                                                                  Jor

                                                                                                  15
                                                                                                   a
                                                                                           Za o r g i
                                ite

                                                                      a

                                                                                    2
                                                                                                                                             5
                                                                       ds
                                                                        2

                                                                                                                                15 n d 1

                                                                                              bia
                                   d

                                                                          ua
                                                                          Pa m
                                      Kin

                                                                                    4

                                                                                             m
                         4        3                                                                                         . A       a                       15
                                                                             l

                                                                                                                                    rl         5
                                          g

                                          Su                                                                               S
                               Ca                                                                                        U. itze ia 1                    blic
                                                                               do

                                                                                    6
                                  mb dan                                                                                                            ep u
                                       od
                                                                                    8
                                                                                                                             Sw ones             nR
                   4 E 4 Eg ia                                                                                                  Ind         ic a
                                                                                                                                        min         15
                                                                                    10
                        l Sa         y
                             lva pt                                                 12                                             Do mbia
                                do                                                                                                        lo
     4 Ir                            r                                              14                                                 Co          a 14
          an, I
                slam
                            4F
                                iji                                                                                                      a n  zani
                                                                                                                                        T               3
                                                                                                                                                  ine 1
                                                                                    16
                      ic R
         4 Ko                ep                                                     18
                                                                                                                                          U kr a
                  re a , R .                                                                                                                         ay 13
                           ep.                                                                                                              Paragu
                                                                                    20
          4 Mya
                     nmar                                                                                                                     Italy 13
              4 Nepal                                                                                                                          Ecuador 13
           4 Pakistan                                                                                                                               Romania 12
           4 Senegal                                                                                                                                Malaysia 12
                                                                                                                                                    Vietnam
          4 Sri Lanka                                                                                                                                         11
                            a                                                                                                                      Venez
            4 Ugand                                                                                                                                       uela 1
                                                                                                                                                                 1
                                                                                                                                                  Per u
                     swana                                                                                                                               11
           5 Bot                                                                                                                                Pan
                          abon                                                                                                                       ama
                                                                                                                                                          11
                   5G                                                                                                                        Nig
                                es                                                                                                                 eria
                      M   aldiv                                                                                                           Lao           11
                   5             olia
                            ong n                                                                                                     Br PDR
                    5    M
                                   ma
                                                                                                                                          a
                                                                                                                                    Ba zil 1            11
                            5 O ada                                                                                                   ng          1
                                       n                                                                                        So       lad
                                  Ca Rica                                                                                          lo
                                                                                                                                     m esh
                               6
                                        sta nce                                                                                       on           10
                                                                                    Po bano an 9

                                    Co Fra                                                                                                 Is l
                                                                                      lan
                                                                                       Le
                                                               Sp e l

                                6                                                                                                              an
                                           6
                                                                                          d
                                                                      a

                                                                                                                                                 ds
                                                                                           Ka opia 9
                                                    7 A r ugu n
                                                                  Isr

                                                                                            9
                                                                   i

                                                                                                                                                    9
                                                                 a

                                                                                              Eth ia 9
                                                                                              zak
                                                               ay
                                       6

                                                                                                n9
                                                                                                Bol
                                                      erm ina

                                                                                                 hst
                                                                                                  i
                                              6

                                                                                                    Sou
                                                           any

                                                                                                     Me x i

                                                                                                     iv
                                                           nt

                                                       hana

                                                                                                       Iraq 8
                                                          as
                                              6U

                                                                                                        Czech Rep
                                                       r ge

                                                   7 India

                                                                                                         Côte d’Ivoire 8

                                                                                                         th A
                                                    bique

                                                                                                         Chile 8
                                          8 Bur kina Faso
                                                    ndur
                                                    7G

                                                                                                            co 8
                                                   7G

                                                                                                              frica
                                              7 Ho

                                          7 Mozam

                                                                                                                    8
                                                                                                                      ublic 8

        The lower the score,
        the better the ranking                                                           0-2   3-4   5-6   7-8   9-10   11-12      13-14   15-16   17-18   19-20
Global Tobacco Industry Interference Index 2021   11

DELAYING LEGISLATION AND
COMPLIANCE TO UNDERMINE EFFECTIVE
TOBACCO CONTROL MEASURES
                                                              “
                                                              The tobacco industry has
                                                              had no qualms about taking
                                                              advantage of the COVID-19
Tobacco industry interference delayed omnibus
tobacco control laws in several countries including,
                                                              pandemic, attempting to
Guatemala (2018), South Africa (2018), Tanzania               sanitize its image through
(2017) and Zambia (2016).
                                                              providing assistance
In Guatemala, the Control of Tobacco Products Bill            to governments, while
was presented to the Congress and discussed in six
meetings by Deputies of the Health Commission from            continuing to interfere
April to August 2019.24 During this period, the TI actively   with implementation of the
participated in meetings and submitted its own drafts of
the proposal with detailed comments for each article. In      WHO FCTC. Government-
August 2019, the TI was given extended time to provide        wide implementation of
additional comments. The bill has not been discussed since.
                                                              Article 5.3 of the Convention
In Zambia and Tanzania, the Tobacco Control Bills
                                                              is the remedy to protect
were not tabled in Parliament. Zambia’s Tobacco
Products Control Bill of 2016, despite a multisectoral        tobacco control policies
approach in its development, has been stalled because
                                                              from the predatory
the TI influenced several ministries to support the
growth of the industry, including the ministries of           practices of an industry that
Commerce, Trade and Industry;25 Finance;26 and                produces a product that kills

                                                                                                             ”
Agriculture.27 Tanzania neither banned tobacco
advertising nor increased tobacco tax and allowed             at least half of its users.
sales of single sticks. Though efforts to update their old
law started in 2007, the bill has not been tabled and
continues to languish. Meanwhile cigarette promotions
continue, and a new brand was launched in Tanzania            Dr. Adriana Blanco Marquizo,
in August 2020 using a popular local artist as its            Head of the Secretariat of the WHO FCTC
brand ambassador.28

While some governments accommodated these delays,
others failed to take action against companies for non-
compliance of existing legislation.

Burkina Faso’s 2015 Decree to implement pictorial
health warnings (PHW)29 was delayed for four years and
came into force finally on July 1, 2019. Imperial Brands,
which controls 80% of the local cigarette market, raised
several issues with the government including: there is no
evidence PHW will motivate consumers to quit; not all
their tobacco packs should carry these new warnings;
and they were not consulted about plain packaging as
mentioned in the Decree.30 Similarly in Lao PDR, after
12   STOP

     accommodating a delay in the implementation of the            represented PMI in its case against Uruguay,38 to obtain
     75% PHW on cigarette packs, action could not be taken         Pfizer vaccines for Uruguay. There is no publicly available
     against Imperial Brands subsidiary Lao Tobacco Limited        evidence to directly connect the approval for ESDs to
     for continued non-compliance because the draft Penalty        the meeting on vaccines, however the tobacco industry
     Decree of the Tobacco Control Law, which penalizes            stands to gain from this decision.
     companies for violating the law, is delayed.
                                                                   During the reform of the General Law for Tobacco
                                                                   Control in Mexico between January 2020 and March
     YIELDING TO LOBBYING AND ALLOWING                             2021, there were 11 proposals made through the
     ELECTRONIC SMOKING DEVICES                                    Economy Commission of Chamber of Deputies to
                                                                   weaken the regulation of ENDS. Earlier in 2019, there
     Following the U.S.A FDA’s approval of the sale of             were four initiatives with the same objective. Pro-
     IQOS in July 2020,31 PMI lobbied at a hearing by the          tobacco industry lobbying has clearly intensified with
     Knesset Economic Affairs Committee in Israel to               the Ministry of Economy39 on proposals for allowing the
     change the definition of alternative products. PMI            sales of alternative products.40
     claimed IQOS does not fall under the same category
     as cigarettes.32 The chairman of the committee rejected       In Georgia, the Business Association of Georgia
     PMI’s request by referring the company to the Ministry        (BAG), a group that represents TI interests,41 promoted
     of Health and stating that the committee would not act        PMI’s IQOS to the Parliament several times.42 PMI
     on the issue.33                                               had contributed US $37,722 to BAG to “fight against
                                                                   COVID-19 and minimize its negative effects on
     At a later hearing of the Knesset Labor, Welfare and          Georgian economy.”43 BAG wrote to the Business
     Health Committee in September 2020, a PMI consultant          Ombudsman’s Office with a legislative proposal to
     was prevented from continuing an argument for reduced         amend the tobacco control regulations to accommodate
     harm when parliamentarians and public health officials        e-cigarettes and novel products. The Ombudsman’s
     forcibly protested the granting of a right to speak by a TI   Office had regular consultations with TI representatives
     representative.34 According to the committee, the U.S.A       and then drafted and sent pro-TI legislative proposals to
     FDA’s announcement did not change the regulatory              the government and the parliament.44, 45
     status of IQOS in Israel.35 PMI’s requests to meet with
     the Ministry of Health were declined.                         In the Philippines, while the Food and Drug
                                                                   Administration (FDA) is mandated by law to regulate
     Policymakers and legislators in several other countries       ENDS and HTPs, the Congress deliberated on bills that
     were persuaded by the TI and its representatives              aimed to weaken the law and replace the FDA’s authority
     to approve electronic smoking devices (ESDs) such             to regulate these products. In Congress committee
     as HTPs and ENDS. Lobbying was often conducted                hearings, representatives of the tobacco and vaping
     with parliamentarians or took place through                   industries46 were invited to provide their opinions and
     parliamentary hearings.                                       propose amendments to the bills. The final committee
     Bolivia’s draft Law 1280 originally set out to ban            report (House Bill 9007) adopted the concept of “harm
     ESDs; however, the ban was removed in October 2019            reduction” as a state policy47 with provisions favoring the
     because tobacco companies assured lawmakers “there            industry, including: lowering the minimum age of sale from
     is still no scientific basis to corroborate that they are     21 to 18 years and allowing advertisements, promotions
     harmful.”36 In Uruguay, in March 2021, the government         and sponsorships, multiple flavors, online sales and indoor
     revised its ban on ESDs, instituted in 2009, to allow         vaping. The FDA’s authority on ENDs and HTPs was
     the marketing and sale of HTPs (such as PMI’s IQOS),          then passed to the Department of Trade and Industry.48
     while maintaining its ban on ENDS.37 This decision            Media professionals with ties to PMI promoted pro-
     was announced soon after the government had a                 harm-reduction messages following a visit to its factory in
     meeting, which involved a lawyer who had previously           Lausanne, Switzerland.49, 50
Global Tobacco Industry Interference Index 2021   13

Prior to the passage of the Vaping Bill in New Zealand
in 2020, there was strong and organized opposition
from the TI-affiliated organizations and opposition
political parties. The Parliament’s Health Select
Committee received submissions from several vaping
and tobacco companies, including BAT New Zealand, JTI,
Imperial Brands New Zealand, Nicoventures Trading Ltd
(BAT) and Juul Labs (Altria).51, 52, 53, 54 Submissions to the
Health Select Committee were made by at least four
organizations identified as having an association with
the TI. These organizations pressured the government
to halt, delay or relax the proposed vaping regulations.
While all published TI-related submissions committed to
preventing youth access to their products, the aggressive
global and local marketing and sponsorship campaigns
by the TI often targeted young people.

In Italy, the government allowed TI lobbyists to present
their company’s position on issues and new tobacco
products using technical analyses and economic data.55
Following strong opposition to a tax increase on
tobacco products by industry-friendly ministries and
parliamentarians,56 HTPs have only a quarter of the tax
of conventional cigarettes57 on the basis that they pose
lower health risks.

Lobbied by tobacco companies, the national standards
body in a few countries developed specifications to
legitimize and legalize ENDS and HTPs, bypassing
regulation by their departments of health. In Indonesia,
with the active participation of PMI subsidiary PT
HM Sampoerna, the Ministry of Industry encouraged
registration of both products under the Indonesian
National Standard to be applied to HTPs and ENDS
in 2020.58 In Vietnam, also after PMI lobbying,59
three national standards were issued by the Ministry
of Science and Technology on HTPs60 determining
nitrogen oxides content, carbon monoxide content
and general specifications.
14   STOP

            02
            The tobacco
            industry’s pandemic-
            related corporate
            social responsibility
            (CSR) activities
            enhanced access
            to senior officials
Global Tobacco Industry Interference Index 2021   15

The TI uses CSR as a corporate strategy to repair and
build its public image and divert attention away from
the harm it causes to society. These activities are a
form of promotion, which is why the FCTC Article 13
Guidelines call for their ban61 and Article 5.3 Guidelines
recommend these be de-normalized.
When governments accept charity from the tobacco              In Myanmar, despite prohibitions on TI-sponsored CSR
industry, they become compromised in their role as            activities,72 the TI contributed funds to the government
regulators of the industry. As the pandemic worsened          during the pandemic. In March 2020, the Myanmar
in 2020, the TI targeted COVID-related CSR activities         traditional cheroot producers’ association donated
at health departments (which are usually responsible          US $25,000 to the National Central Committee on
for tobacco control), hospitals and medical professionals     Prevention, Control and Treatment of Coronavirus
that were in desperate need for additional resources.         Disease (COVID-19), which was received by the
                                                              Minister of Health.73
During the pandemic there was no reported tobacco-
related CSR charity in Chile, Côte d’lvoire,                  In the Philippines, in line with a Civil Service
Ethiopia, Gabon, New Zealand, the Netherlands                 Commission (CSC)-Department of Health (DOH)
and Norway.                                                   Joint Memorandum Circular (JMC), which prohibits
                                                              government agencies from accepting donations from the
Departments of health in many countries, however,             TI, the DOH did not accept 30 ventilators sponsored
accepted and endorsed these CSR charities (see                by PMI subsidiary, Philip Morris Fortune Tobacco
Appendix A) during the pandemic, effectively giving the       Corporation (PMFTC) as part of a larger donation
TI positive publicity.                                        of 400 ventilators by a Singapore foundation. Instead
The Minister/Secretary of Health in Lebanon,62                they redirected the ventilators to private hospitals.74
Malaysia,63 Myanmar64 and Tanzania65 publicly                 Pro-industry lawmakers criticized the DOH for not
welcomed charity from tobacco companies. Tobacco              distributing these respirators to public hospitals.75 In
companies also contributed to national COVID-19               March, the DOH released Department Memorandum
funds in Kenya,66 Georgia,67 India,68 Pakistan69 and          No. 2020-0156 reiterating the CSC-DOH JMC,
Turkey.70 As these were high-profile funds and often          reminding all DOH staff that no donations or assistance
under the auspices of the head of state, contributors         from the TI can be accepted. It also required all donors
received positive publicity.                                  to submit a declaration of interest as an administrative
                                                              requirement for donations and partnerships.
In Georgia, the government publicized companies
that donated to the StopCov Fund as “organizations            Nepal’s Tobacco Product Control and Regulatory
with high social responsibility.” After protests from local   Directive 2014 prohibits tobacco manufacturers and
civil society organizations71 about the fake charity from     related parties from providing any financial, technical,
tobacco companies, the government removed the logos           material or structural assistance to educational
of BAT, PMI and JTI from the Fund’s site.                     seminaries, theaters, religious discourse or health
                                                              facilities operated by the government, non-government
16   STOP

     or private sectors. In April 2021, Surya Nepal, a            There were other non-pandemic-related TI CSR
     subsidiary of ITC Ltd, and BAT, were to sign a Rs 50         activities, which governments endorsed. PMI,86 BAT87 and
     million MOU with the state-owned Kathmandu Institute         JTI88 conducted public awareness campaigns on cigarette
     of Child Health towards the construction of a children’s     butt litter under the patronage of the Italian Ministry
     hospital. Following protests from local civil society        of Ecological Transition.
     organizations against this sponsorship from a tobacco
     company, the hospital rejected the money.76                  Egypt has yet to ban TI sponsorship of sports, and
                                                                  the Minister of Youth and Sports endorsed Eastern
     In Guatemala and Lebanon, the TI met with ministers          Company’s sponsorship of the 2021 Golden Cleopatra
     and offered to repatriate citizens stranded overseas by      International Chess Championship, which exposes young
     the pandemic. In Guatemala, one month after their            chess fans to TI brands and messaging.89
     lockdown in April 2020, PMI offered a contribution
     to the Ministry of Foreign Affairs towards helping 36        CSR activity was taken to a different level in Indonesia,
     citizens stranded in the Dominican Republic due to the       a non-Party to the WHO FCTC, with the ground-
     pandemic.77 In Lebanon, the State-run Regie Libanaise        breaking ceremony for the construction of the Kediri
     des Tabacs et Tombacs met with the Ministers of Health       International Airport sponsored by the largest local
     and Finance offering to donate US $1 million to bring        tobacco company, Gudang Garam, as part of the
     back Lebanese students from abroad. This sum also            government’s national strategic project in Kediri District,
     included the offer to buy ventilators for COVID-19           East Java.90
     patients. The donation was accepted at a Cabinet             Handing checks to the police or armed forces is
     meeting in March 2020, which Regie publicized.78             rarely done but the TI was able to use the pandemic
     In Poland, Philip Morris Polska donated medical              as a cover and disguise this type of charity as CSR
     equipment and PPE to hospitals and received approval         activities. In addition to PPE and hand sanitizers, TI
     from the Office for Registration of Medicinal Products,      charity also included ambulances and motor vehicles,
     Medical Devices and Biocidal Products to convert part        which were endorsed by army and police chiefs and
     of its cigarette factory in Kraków to produce disinfectant   promoted in mainstream and social media. Countries
     for donating to health care institutions.79 In Germany,      included: Brazil (one ambulance from Souza Cruz/
     the health authority of Berlin accepted an offer             BAT);91 China (18 ambulances co-sponsored by
     from PMI to use its cigarette factory as a COVID-19          Shanghai Tobacco Group Corp, eight ambulances from
     logistics center.80                                          Chongqing Tobacco Monopoly Bureau);92, 93 Italy
                                                                  (35 cars from BAT since 2015);94 and the Philippines
     In China, the State-owned TI donated about 456 million       (two ambulances from PMFTC).95
     yuan towards COVID-19-related CSR activities, and
     strengthened its position as a “pillar of the economy”81     Philippine Congresswoman Loren Legarda observed
     and continued to conduct more high-profile non-              that there seemed to be misleading messages about
     COVID-19 related charity around education,82 poverty         the role of tobacco in the pandemic, with tobacco
     alleviation,83 disaster relief 84 and the construction of    companies styling themselves “as a vaccine developer
     smoking rooms for a “civilized smoking environment.”85       and donor of PPE but they have, in fact, tried to get tax
     Notably, China has not implemented a national 100%           privileges and exemptions from quarantine rules for
     smoke-free policy in line with the WHO FCTC.                 their supply chains.”96
Global Tobacco Industry Interference Index 2021   17

03
The tobacco
industry received
incentives that
benefitted
its business
18   STOP

     Article 5.3 calls on countries to not give benefits to
     the TI, and several countries proved this was possible.
     However, despite the pandemic lockdowns, social
     isolation, human suffering and economic downturn,
     the TI thrived in most countries.
     The TI benefited from various tax breaks, and tobacco     maintained the removal of duties for up to 3,000 tons
     production, distribution and sales were not disrupted     of tobacco leaves exported to Vietnam per year.103 The
     as they were given permission to function through the     Dominican Republic104 eliminated taxes on locally
     pandemic. Some companies were even able to approve,       produced tobacco.105
     launch and promote new tobacco products. A few
     countries temporarily stopped tobacco production, but     In Argentina, the tax reform resulted in taxes on
     strong lobbying by the industry or its representatives    cigarettes being reduced from 75% to 70%.106 In
     often reversed the stop order.                            Norway, the real (inflation-adjusted) tax rates on
                                                               tobacco products have been virtually unchanged since
                                                               2011,107 but in 2020 the government made a decision to
     TAX BREAKS FOR THE INDUSTRY                               reduce tax on snus by 25%, effective January 1, 2021.108
     From the data collected, in several countries where TI    Lower tax rates were also applied to HTPs in several
     CSR contributions were reported, the TI appears to        countries. In the Czech Republic109 and Italy, HTPs
     have also benefitted from much sought-after tax breaks.   were taxed only a quarter that of regular cigarettes. In
     Tax breaks in several countries come in the form of a     Poland, the minimum excise duty for a pack of 20 sticks
     delay in anticipated tax increases, tax exemptions, tax   is approximately PLN 9.09, while for HTPs it is about
     reductions, lowering tax levels for new products or the   PLN 1.80 (20%).110
     allowing of late tax payments (see Appendix A).
                                                               In Germany, benefits from a tax exemption for
     Where CSR activities in Malaysia, Pakistan, Tanzania      tobacco products that manufacturers offer their
     and Zambia were reportedly intense, it was observed       employees as an in-kind allowance, amounted to €5
     that these countries did not impose any tax increases     million (US $5.65 million) in 2020.111 Value-added
     on tobacco in 2020. In Pakistan, while there was no       tax (VAT), which applies to consumer products, are
     federal excise duty imposed on tobacco, with cigarette    exempted for tobacco in Guatemala and Costa Rica.
     prices being low compared to other countries,97 there     Costa Rica loses about US $5 million a year by not
     was a withdrawal of advance tax on tobacco growers,       collecting VAT.
     which helped increase exports of tobacco.98, 99
                                                               However, some governments acted in the interest of
     The following countries also reported increased CSR       public health and treated ENDS and HTPs as tobacco
     activity in the reporting period, and further evidence    products. This means the same tax rates apply. In June
     showed that Myanmar100 gave tax exemptions to             2020, the Italian National Health Institute rejected an
     cheroots, cigars and raw tobacco for annual production    application by PMI to have its IQOS HTP classed as less
     costs not exceeding US $12,000. Cambodia101, 102          risky than smoking cigarettes.112
Global Tobacco Industry Interference Index 2021   19

HARMFUL PRODUCTS TREATED AS                                      APPROVALS OF NEW TOBACCO
“ESSENTIAL” DURING THE PANDEMIC                                  PRODUCTS DURING THE PANDEMIC
After the TI lobbied certain government agencies to              BAT registered its oral nicotine pouch product, Lyft, with
consider cigarettes “essential” products, these agencies         the Kenyan Pharmacy and Poisons Board, classifying
often acted on behalf of the industry to promote the             it as a drug to shield Lyft from being regulated as a
TI’s interests. In Bangladesh, the Ministry of Industries        tobacco product.128 However, following interventions by
granted special permissions to BAT and JTI in April 2020         tobacco control advocates in April 2021 the government
to continue manufacturing, purchasing leaf, supplying            reclassified Lyft to be regulated as a tobacco product.129
finished goods and distributing them amid a nationwide
COVID-19 shutdown.13, 14 A request from the Ministry             PMI started sales of IQOS in Lebanon in February
of Health and Family Welfare to withdraw such special            2020. In Egypt, it reported working with regulators to
permissions15 was quickly turned down.16 In Botswana,            obtain approval for sales, while the Ministry of Finance
cigarette sales and importation were banned during the           was determining the tax rate for HTPs.130, 131 BAT
lockdown in April 2020; however, the ban was lifted after        launched its Glo HTP in Spain in 2020.
pressure from the TI.117
                                                                 OTHER BENEFITS GIVEN TO THE
The Jordanian government considered tobacco
products essential and allowed distributors and retailers        TOBACCO INDUSTRY
to open up businesses during the early easing of the             The Ugandan government sought a supplementary
pandemic lockdown.118                                            budget of about UGX 11.2 billion (US $3.08 million) to
New Zealand designated a tobacco factory as an                   compensate tobacco farmers after the industry refused
“essential business” and permitted it to continue during         to pay them despite contracts with them.132 While it is
the COVID-19 lockdown.119 The Association of Brazilian           not a direct benefit given to the industry, it nevertheless
Tobacco Growers, AFUBRA, lobbied city authorities to             benefitted by not paying what was reportedly due to
allow cigarette production. In June 2020, the city mayor of      the farmers.
Venâncio Aires, where six tobacco companies are located,         The TI was endorsed in Mozambique with the
authorized the tobacco plants to function at full capacity.120   President announcing China would import 60,000 tons
The Ministry of Industry and Trade in Sudan121 deemed            of tobacco produced in Mozambique by February 2020
cigarettes essential commodities, as did the Malaysian           and expressed the need to boost production.133
Deputy Domestic Trade Minister, claiming cigarettes              Governments accommodated delays in the
could be sold during the lockdown because they were              implementation of PHW in Ethiopia134 and in
“essential to cigarette addicts.”122 New York City also          Bolivia,135 and postponed plain packaging in
deemed tobacco and e-cigarettes “essential” during               Georgia136 and Turkey.137
the pandemic.123

Cigarettes were initially listed as “essential” in Kenya
in April 2020,124 and BAT even relaunched its cigarette
brands.125 But in March 2021, through a Special Issue of the
Kenya Gazette Supplement,126 the government dropped
tobacco products from its list of essential products.

In Iraq, the Ministry of Trade distributed locally
produced Somar cigarettes together with the free
food ration program to poor families.127
20   STOP

            04
            Inappropriate
            interactions
            occurred between
            governments and
            the industry
Global Tobacco Industry Interference Index 2021   21

The COVID-19 pandemic restrictions limited gatherings
and public events in 2020; however, the TI managed to
foster relationships with and receive endorsements
from high-level officials and politicians (see Figure 3).
In several countries, the TI secured face-to-face meetings      When reported in the media, these types of visits
with heads of state or their office, ministers or other         provide additional endorsement for the companies,
high-ranking officials to seek endorsement of its business      undermining the public understanding that tobacco is a
such as inauguration ceremonies or factory visits (see          harmful and regulated product. Such visits may be seen
Table 1). For example, in Germany, the Prime Minister           as unnecessary interactions. Without a clear policy that
of Saxony endorsed PMI as a “business partner,” posting         limits TI and government interactions to “only when
pictures of his factory visit on his official Facebook138 and   strictly necessary for regulation purposes”, government
Twitter accounts.139                                            officials will continue to participate in TI sponsored
                                                                events and appear jointly on public platforms.

TABLE 1: ENDORSEMENT OF TOBACCO BUSINESSES BY OFFICIALS

 COUNTRY               OFFICIAL                                              VISITS

 Brazil                Governor of Rio Grande do Sul                         Visited PMI factory140

 Fiji                  Attorney General                                      Opened BAT’s new factory141

                       Prime Minister of Lower Saxony                        Visited Reemtsma tobacco factory142
 Germany
                       Prime Minister of Saxony                              Visited opening of PMI’s logistics center143

                                                                             Visited BAT headquarters in Nairobi
 Kenya                 National Environment Management Authority
                                                                             to mark World Environment Day 2020144

                       Acting Minister of Commerce, Trade and Industry       Visited BAT factory in Lusaka145
 Zambia
                       Former President                                      Toured premises of JTI in Chipata146
22     STOP

       Figure 3: Governments engage in unnecessary
       interaction with the tobacco industry

                                        0 Br unei

                                                                                                                                15
                                                                                                                            lic
                                                  0 C os

                                                                                                                       ia 15
                                                  Dar ussala

                                                                                                                           5

                                                                                                                        pub
                                                                                                                    DR 1

                                                                                                                      15
                                                      0M

                                                                                                                     Re
                                                                                                                      5
                                                                                                             R oman

                                                                                                                an 1
                                                         ta Rica
                                                          0 Isr

                                                                                                                 sia

                                                                                                                  5
                                                                                                                   n
                                                                                                            Lao P
                                                           ong

                                                                                                               ica
                                                                                                             ia 1
                                                                                                            one
                                                            0S
                                                             1

                                                                                                              5
                                                              m

                                                                                                          Jord
                                                              1 G Re p

                                                                                                          min
                                                                ael

                                                                                                           a1
                                                                Ko

                                                                 olia

                                                                                              Ar omb
                                                                 uda

                                                                                                       Ind

                                                                                                        14
                                                                                   0
                                                                   rea anda

                                                                                                         n
                                                                                                    Do
                         2
                                                                    abo .

                                                                                                       i
                                              1

                                                                                            Ho nt

                                                                                                    as
                                                                      n

                                                                                                     l
                                                                                   2

                                                                                                Co
                             N
                                                                       ,

                                                                                                 ge
                                                                         Ug ives

                                                                                                 ur
                                      2

                                                                         n

                                 ew
                                                                                                                                   13 3

                                                                                              nd
                                                                           M

                                                                                   4
                                      Ze
                                                                            ald

                             2                                                                                                  ly       1
                                                                                                                                     ina ia 12
                                         a   lan
                                                                                   6
                                                                                                                           It a
                                 Se                d                                                                               h
                     2             ne                                              8
                                                                                                                                  C org
                   Th
                      aila al
                             g                                                                                                                     12
                                                                                   10                                                Ge ador
                3         n                                                                                                                              1
                            d                                                                                                           Ecu am 1
           3 M Kenya
                                                                                   12
                                                                                                                                              tn
               yan                                                                 14                                                      Vie ne 11
                   m                                                                                                                              ai              11
            3 N ar                                                                 16                                                        U kr          land
                epa                                                                                                                                t z e r
         3 No       l                                                                                                                         Swi                    es 11
                                                                                   18

              rway                                                                 20                                                                e  P h  ilippin
                                                                                                                                                Th
           3 Pala                                                                                                                                                11
3 United
                  u                                                                                                                              Panama
         Kingdom                                                                                                                                  India 11
    4 Cambodia                                                                                                                                      Burkina Faso 11
           4 France                                                                                                                                 Brazil 11
            4 Ghana                                                                                                                                Solomon
                                                                                                                                                              Islands 1
                      p.                                                                                                                           Nigeri              0
           lamic Re                                                                                                                                       a 10
4 Iran, Is                                                                                                                                       Me x
                  Lanka                                                                                                                               ico 1
          4 Sri           y                                                                                                                   Japa          0
                   ugua                                                                                                                              n1
             4 Ur         ire                                                                                                               Eth         0
                                                                                                                                                  iop
                te d’Ivo ic                                                                                                               Bo         ia 1
              ô             bl                                                                                                               livi         0
         5C           epu la                                                                                                                      a
                                                                                                                                           mb 10
                    R                                                                                                                   Za
                  h            a
            C zec       a tem an                                                                                                     So        ia
         5            u
                  5 G zakhs ain
                                  t                                                                                               Ira uth A 9
                                                                                                                                     q       fric
                       K a          Sp ia                                                                                              9          a9
                    5            5       an
                                                                                        Fij Salva

                                       nz
                                                                                           i9
                                                                                            El
                                                                  ez ey

                                    Ta
                                                                       rk

                                 5
                                                                                               Par ragu
                                                    6 G swan a
                                                                      el
                                                                    Tu

                                                                                                 Nic t 8
                                                                    a
                                                                    u

                                                                                                  a
                                                                  5

                                                                                                   do
                                                                                                    gua a 8
                                                                                                    Egy
                                                              any

                                                                                                     a
                                                                n

                                                                                                      Chil
                                                           ique

                                                                                                      r9
                                                             Ve

                                                                                                       y8
                                                                                                       Cana
                                                            ds

                                                                                                        p
                                                         er m
                                                           ot

                                                                                                         Bangla
                                                          ru

                                                                                                          U.S.A 7
                                              5

                                                         nd
                                                      r lan

                                                                                                          Oman 7
                                                                                                          Pakistan 7

                                                                                                          e8
                                              7 Malaysia
                                             7 Lebanon
                                                      6B

                                                     amb

                                                   6 Pe
                                                6 Pola

                                                                                                             da 8
                                                 ethe
                                                   z

                                                                                                               desh 8
                                                  o
                                              6M
                                            he N
                                         6T

       The lower the score,
       the better the ranking                                                             0-2   3-4    5-6   7-8   9-10   11-12     13-14   15-16   17-18    19-20
Global Tobacco Industry Interference Index 2021   23

                                                              “
In Pakistan, two officials from the Prime Minister’s
office officiated the “Made in Pakistan” inauguration
ceremony of BAT’s subsidiary, Pakistan Tobacco
Company, stating the export initiative complemented
                                                              The newest edition of the
the Prime Minister’s ambition of “Making Pakistan             Index updates and broadens
business friendly.” During the event, BAT’s new tobacco
product, Velo, was launched.147
                                                              the scope of this invaluable
                                                              tool to support accelerated
In Nicaragua, unnecessary interaction with the TI was
reframed by city officials as boosting tourism. The Estelí    implementation of the WHO
cigar festival was organized in collaboration with the        FCTC. Translating Article 5.3
local government148 where the basis of the interaction
was related to cigar commercialization and promoting          and its Guidelines into
the city as a tourist destination for cigars.                 national legislation and codes
In Poland, with Philip Morris Polska (PMP) as a partner       is essential and more urgent
and speaker, the Association of Business Service Leaders
hosted an on-site and online forum, “Crisis Boosting
                                                              than ever given the tobacco
Investments,” where speakers included the Prime               industry’s insincere
Minister and Deputy Prime Minister. During the forum
                                                              ‘redemption’ narrative in
to discuss post-COVID economic recovery, PMP’s
participation in the event elevated its business profile      recent years. The industry
and provided networking opportunities.149
                                                              is proposing solutions to a
                                                              problem they have created,
COLLABORATION BETWEEN THE TI AND
GOVERNMENTS THROUGH AGREEMENTS                                and we need to go back
AND TRAINING                                                  to the basics and stop all
Article 5.3 Guidelines clarify that interactions with the     industry interference in

                                                                                                         ”
TI should be limited to only when strictly necessary. The     public health policies.
TI, however, collaborates with governments through
agreements, training programs and enforcement
activities, which effectively sustain interactions, some
of which continue for many years. The industry                Dr. Douglas W. Bettcher, Senior Advisor,
strategically focused on building agreements with             Director-General’s Office,
specific departments on illicit trade, as this enabled it     World Health Organization
to collaborate with the agencies involved in developing
tax policies, such as customs or commerce departments,
and their enforcement, such as the police.

Table 2 shows TI agreements with countries who are all
Parties to the FCTC. However, many of them have not
ratified the Protocol to Eliminate Illicit Trade in Tobacco
Products (ITP).150 Parties to the FCTC, even if not a
Party to the ITP, are bound by Article 5.3 and need to
terminate agreements with the TI. In 2020, Egypt and
the Netherlands ratified the ITP.
24   STOP

     TABLE 2: AGREEMENTS, TRAINING AND ENFORCEMENT WITH THE TOBACCO INDUSTRY

      FCTC PARTIES                ITP                             AGREEMENT/ TRAINING/ ENFORCEMENT

                                                                  The National Federation of Departments’ agreement with
      1. Colombia                 Signed in 2013, not ratified
                                                                  PMI to address illicit trade (US $500,000).151

                                                                  PMI conducted training on illicit trade for Egyptian
      2. Egypt                    Party since September 2020
                                                                  Customs Authority officials.152

                                                                  JTI/National Tobacco Enterprise MOU with Customs
      3. Ethiopia                 Not a Party                     Commission under the Ministry of Revenue to address
                                                                  illicit trade.153

                                                                  Agreement with BAT (2015–2021) provides 35 cars and
      4. Italy                    Not a Party
                                                                  addresses illicit trade.154

                                                                  TI MOU with Dutch Customs focused on combatting
      5. The Netherlands          Party since July 2020
                                                                  fraud and smuggling.155

                                                                  The Ministry of Production convened a working group
                                                                  against illicit trade comprising officials (SUNAT, Public
      6. Peru                     Not a Party
                                                                  Ministry, National Police, INDECOPI) and the Tobacco
                                                                  Committee of the National Society of Industry.156

                                                                  Enforcement and Security Service, Bureau of Customs,
      7. Philippines              Not a Party
                                                                  destroyed smuggled cigarettes witnessed by JTI.157

                                                                  JTI partnership with the Customs and Police since 2013,
      8. Romania                  Not a Party
                                                                  renewed annually.158

                                                                  BATSA collaboration with South African Police Services
      9. South Africa             Signed in 2013, not ratified    and South African Revenue Service to address illicit
                                                                  trade of tobacco.159

     Countries that partner with the TI on illicit trade issues     awareness program on the “Impact of Smuggling Before
     may be dissuaded from ratifying the ITP. El Salvador’s         and After COVID” involving the Attorney General’s
     attempt to ratify the ITP in July 2018, was thwarted           Office, Customs Department and UNODC.161 In
     after BAT intervened through the Ministry of Foreign           Malaysia, JTI presented nine cars and two motorcycles
     Affairs and claimed, “It is premature to promote that          to the Inspector General of Police for enforcement
     this ratification will be the solution to the problem that     of illicit trade, endorsed by the Japanese Ambassador
     El Salvador has today with respect to the illicit tobacco      to Malaysia.162
     trade.”160 Instead, in 2020, BAT and PMI conducted an
Global Tobacco Industry Interference Index 2021   25

TOBACCO COMPANIES BOOST THEIR                                   In the Philippines, PMFTC, through its charity program,
IMAGE WHEN GIVEN AWARDS                                         donated two ambulances to the armed forces in March
                                                                for their frontline role in managing the pandemic,171 and
Another activity that undermines Article 5.3 Guidelines         in July the Armed Forces chief awarded PMFTC the
is when senior government officials present awards to           stakeholder’s award.
tobacco companies. These trivial awards, which were
regularly received by the TI, enhance their reputation as
exemplary corporate citizens. (Table 3).

TABLE 3: AWARDS GOVERNMENTS GAVE TO TOBACCO COMPANIES

 COUNTRY              OFFICIAL/DEPARTMENT              AWARD                                         COMPANY

                      Finance Minister/Chairman        Token of appreciation
 Bangladesh                                                                                          BAT
                      National Board of Revenue        – among top tax paying companies163

                                                       Certificate of Appreciation
 Egypt                Finance Minister                                                               Philip Morris Misr
                                                       for paying tax on time164

                      Ministry for Gender,             Prime Minister Prize for
                                                                                                     KT&G
                      Equality and Family              “Family-friendly Company”165
 Korea
                                                       Presidential Prize for “Contributing
                      Ministry of Justice                                                            KT&G
                                                       to Law and Order”166

                      Armed Forces of the              Stakeholder’s Award for CSR                   Philip Morris Fortune
                      Philippines                      – Project Embrace167                          Tobacco Corp
 Philippines
                      Armed Forces of the              Kapayapaan Award for CSR                      Philip Morris Fortune
                      Philippines                      – Project Embrace168                          Tobacco Corp

                                                       “Highest investment”,
 Turkey               Minister of Commerce                                                           Philip Morris Sabanci
                                                       “Highest production”169, 170
26   STOP

            05
            Transparency
            and accountability
            decreased
Global Tobacco Industry Interference Index 2021   27

It was a challenge to assess government transparency
during COVID-19 lockdowns. Official meetings were
switched to a mostly online format and given less
visibility. Some face-to-face meetings were still
conducted with the TI, but not in a transparent
manner (see Figure 4).
Advocates used freedom of information (FOI) requests         for transparency and accountability in government
to obtain information on unreported meetings that took       dealings with the TI. However, the implementation and
place between the government and the TI. In 2020, it         enforcement of the provisions of the Act and Regulations
was only upon inquiry through parliamentary requests         violated this when state and federal government officials
for information that advocates discovered at least five      allegedly held meetings and interacted with the TI without
meetings that occurred between the TI and high-level         divulging the details to the public.
government officials in Germany.172, 173 Similarly in the
Ukraine, the Access to Public Information law174 made        The importance of transparency and registering
it possible to obtain information such as the protocols      lobbyists is exemplified in New Zealand’s experience.
of government meetings, agendas and participants             The NZ Taxpayers Union and the NZ Initiative, two
lists. In Argentina, despite there being a government        lobby groups with TI support, were regular contributors
website for meetings, not every meeting with the TI was      to public debate and government submissions. Both
reported.175, 176                                            groups previously opposed plain packaging laws, tobacco
                                                             tax increases and vaping regulations.179, 180 In another
In Bangladesh, the National Board of Revenue                 case, a former BAT employee-turned-PR lobbyist was
conducted a pre-budget meeting with various industries,      paid to anonymously attack anyone who proposed
including the Bangladesh Cigarette Manufacturers             policy opposed by his tobacco, sugar and alcohol
Association, which proposed no increase in tax in the        clients.181 This was revealed in a defamation suit filed by
coming financial year.177                                    three public health experts against him and the Food
                                                             and Grocery Council.182
In the Dominican Republic, the President held a
closed-door meeting with representatives of the TI and
senior government officials. During the meeting the
President assured them of the government’s protection
of the TI and the participation of a committee of
tobacco producers in promoting the industry.178

Nigeria’s National Tobacco Control Act stipulates that
all meetings involving the government and the industry
should be conducted in a transparent manner and the
details made readily available to the public (Section 25).
National Tobacco Control Regulations 2019 provide
28       STOP

           Figure 4: Lack of transparency

                                         3 El Salva

                                                                                                                    10
                                                                                                                a 10

                                                                                                                 10
                                                                                                              zuela
                                             3T

                                              3H

                                                                                                                0
                                               3 Fra

                                                                                                   Sud y 10
                                                                                                         Zambi

                                                                                                           guay

                                                                                                             s1
                                                 he

                                                  ond

                                                                                                            0
                                                   3 Fiji

                                                                                                        Vene

                                                                                                           10

                                                                                                 l 1 land
                                                   d or

                                                                                                          a1
                                                    Phi

                                                                                                         ke
                                                                                                      Ur u
                                                     nce
                                                     3P
                                                      u r as

                                                                                                       an

                                                                                                         s
                                                                                           So ank
                                                        lipp nd

                                                                                                     Tur

                                                                                                      nI
                                                                              0
                                                          3 P iopi

                                                           e

                                                                                                    0
                                                                                         Se omo
                                         4

                                                            ru

                                                                                                    L
                                                                                                                           10
                                                             ine

                                                                              1
                                                              o

                     4

                                                                                               Sr i
                                                               Eth eny

                                                                la

                                                                                              ga
                                                                                                                      ia
                                                                 s

                  Un

                                                                                               l
                                                                                                                    an     0
                                      4

                                                                              2

                                                                                           ne
                     ite        4                                                                                  m ay 1
                                                                   K

                         d
                           Kin Spa
                                                                     a

                5
                                                                              3                                   o
                                                                                                                R     rw    0             0
                                                                                                                    No pal 1 que 1
                  Bu
                                                                       a

                     r ki     g d in                                          4
                         n a om                                                                                                  i
                  5 C Faso
                                                                              5                                       Ne amb
                                                                                                                          z             0
                       ana                                                    6                                         Mo ives 1
                  5 C da                                                                                                 Ma
                                                                                                                            l d             10
                                                                              7
                                                                                                                                    , R ep.
                        hile                                                                                                    e a
              5G                                                              8                                            Kor              n 10
        5N         abo                                                                                                               khsta
           ew Z          n                                                    9
                                                                                                                             Kaza
                ealan                                                                                                                    0
                       d                                                                                                       Iraq 1
                                                                           10
         5 Nic
               aragua                                                                                                                         ic Rep. 10
                                                                                                                                Iran, Islam
            5 Oman                                                                                                               Indonesia 10
            5 Palau                                                                                                                 India 10
             5 U.S.A                                                                                                                Georgia 10
             6 Brazil                                                                                                               Dominic
                                                                                                                                           an Repub
                                                                                                                                    C              lic 10
                    lam                                                                                                                zech R
         i Dar ussa                                                                                                                            epubli
6 Br une                a                                                                                                         Côte                c 10
               6 Chin                                                                                                                     d’Ivo
                                                                                                                                                 i
                                                                                                                                Cos               re 10
                       ana                                                                                                             ta R
                6 Gh o                                                                                                        Sw            ica 1
                      exic                                                                                                         itz             0
                 6M            ia                                                                                          My er land
                      N iger                                                                                             Mo nmar
                                                                                                                                a              9
                   6          am
                                  a                                                                                          n           9
                          a n                                                                                         Le       go
                                      a                                                                                           lia
                      6 P zani                                                                                           b
                                                                                                                    Gu ano            9
                           Ta  n        da                                                                            at       n9
                        6           gan e                                                                               em
                                  U          in
                                                                                  Ge ypt 9 ia 9

                              6           ra                                                                               ala
                                        k
                                                                                    rm

                                                                                                                               9
                                                                                    Eg
                                                                          m

                                      U
                                                           Ca etna

                                   6
                                                                                       an
                                                                                       Co via 9
                                                                       ia

                                                                                         y9
                                                       7 E bod

                                                                                          Bo
                                                                   or

                                                                                           l
                                                                    Vi

                                                                                            o
                                                                                             Ban

                                                                                             mb
                                                                  l
                                                                ad

                                                                                              li
                                                                m

                                                              rae
                                    6

                                                                                                 Lao
                                                               a
                                                            cu

                                                                                                  Jorda
                                                              i
                                                           ds

                                                                                                   glad
                                                        lays
                                                            s

                                                                                                    Japan 8
                                                  kistan
                                                       7I

                                                                                                     Italy 8
                                                  guay
                                                    r la n
                                        7

                                                                                                      Botswana 8
                                                  frica

                                                                                                      Argentina 8
                                           7 Thailand

                                                                                                       PDR
                                                   Ma

                                                                                                        esh
                                                                                                         n8
                                               ethe

                                            7 Para
                                        7 South A
                                             7 Pa
                                                7

                                                                                                            9
                                                                                                            8
                                          he N
                                       7T

           The lower the score,
           the better the ranking                                                    1       2    3    4   5    6          7    8       9      10
Global Tobacco Industry Interference Index 2021   29

06
Public officials
faced conflicts of
interest situations
30   STOP

     Article 5.3 Guidelines recommend avoiding conflicts of
     interest for government officials and enacting rules
     to protect public health policies from TI interference.
     In many countries, lawmakers have made themselves
     vulnerable to industry interference by accepting
     political donations from the TI, being involved in a
     tobacco business or through a revolving door between
     the TI and the government (see Table 4).
     A revolving door of retiring senior government officials      from the TI.188, 189 While such donations are permitted,
     joining tobacco companies or industry executives taking       Article 5.3 Guidelines state, “Payments, gifts and services,
     up senior government positions creates opportunities for      monetary or in-kind, and research funding offered by the
     undue industry influence on tobacco control policies. Table   tobacco industry to government institutions, officials or
     4 shows a sample of countries with this type of career        employees can create conflicts of interest.”190
     movement of former officials and industry executives.
                                                                   Ukraine law prohibits all forms of financial or other
     Uruguay’s Decree 284/008 prohibits all forms                  support by the TI for events, activities, individuals,
     of sponsorship of tobacco companies, including                or groups, including political parties or politicians,
     donations.183 Despite this, the largest tobacco company       sportsmen or sports teams, artists or artist groups,
     in Uruguay, Monte Paz, contributed US $13,000184, 185         and educational institutions of any form or ownership.
     towards the election campaign of the President’s party.       The law also prohibits the TI from providing financial
                                                                   support to educational campaigns or events for the
     A former President of Paraguay (2013-2018) is                 public, including youth smoking prevention programs.191
     the majority shareholder of Tabacalera del Este S.A.          Nigeria’s National Tobacco Control Act disallows
     (TABESA), the largest tobacco company in Paraguay.            funding of political parties by the TI,192 but it is a
     Since TABESA is a major contributor to Paraguayan tax         challenge to ascertain any breach of this law as funding
     revenues186 and owned by a politician who is also one of      of political parties in Nigeria is not transparent.
     the country’s wealthiest businessmen, he has influence in
     determining tax policy.                                       The importance of separating legislators from the TI is
                                                                   illustrated in Pakistan, where a senator, who is also a
     In the United Kingdom, although there is no                   local cigarette manufacturer, distributed cigarette packs
     legislation specifically prohibiting the TI from donating     illegally carrying the monogram of the Senate and
     to political parties, candidates or campaigns, there          without the legally required health warning or other
     are general rules regulating political contributions          packaging requirements in the parliament house.193
     and the disclosure of such contributions. Donations
     worth over GBP 7,500 to national political parties
     must be declared.187 Several politicians who are senior
     government officials have a history of receiving money
You can also read