Moratorium Septemer2009

8/10/2019 Moratorium Septemer2009

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Tobaccoindustryinnovation:

coolnewwaystoanearlygrave

WhyweneedaMoratoriumonnewtobaccoproducts

FloryDoucas

September200

Physiciansfor Smoke-Free Canada

1226AWellingtonStreet Ottawa,Ontario,K1Y3A1

www.smokefree.ca [email protected]


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Manufacturersdoallthattheycantoretaintheircustomers.Publicly,thisappearstoincludeportraying

newproductsassimpleimprovementsofcurrentproducts,perhapstoreassurealreadywaryusers.

DespitewhatImperialTobaccoCanada(ITC)tellsretailersandsmokers,BritishAmericanTobacco(BAT),

itsparentcompany,likeBrown&Williamson,alsoacknowledgedthatevensimplechangesmadeto

currentproductstransformthemintonewones.A1990workplanofthecompanydetailsdevelopment

ofnewproducts,manyofwhichonly

involvemodificationstoconventional

cigarettepackaging,imageryandtaste.2

PhilipMorris/Altria(currentownerof

CanadasRothmansBenson&Hedges)

1997reporttitledNewProduct

LaunchesandLineExtensionsdescribes

NewProductsLaunchesaroundthe

world,butallproductsbeingdescribed

areeithernewcigarettebrandsornew

brandextensions.3Thesamereportshowsthatfromthe

businessperspective,thelaunchofnewproductsandbrand

extensionsisviewedasasingleactivity.4

AndwordsfromtheBrown&Williamsonringtruer35years

later,astheenvisionednonmentholmentholcigarettes

productideafrom1974makesitsdebutintheUSandJapan.5

2.Whynewproductsareb dforpublichealth

Theyoutsm rtregulators

Manufacturers

find

loopholes

in

legislation

and

develop

new

products

and

pro

tobacco

marketing

accordingly.Inmanyinstances,newproductshaveenabledmanufacturerstocircumventorovercome

existingregulationsandrequirements.Forexample,manyoftherecentlyintroducednewcigarette

packagesdistortorminimizetheimpactandreadabilityofthehealthwarningsthatgovernment

developedtosuittheproductsastheyappeared10yearsago.Newproductshavealsoallowed

manufacturerstooffsethealthconcernsthatsmokersandothershave,andthatareknowntopromote

Philip Morris,1997.


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quitattempts.Marketershavedevelopednewphrasesandcolouringschemestoevokesomeformof

wholesomenessorreducedrisk(100%naturaltobacco,carbonfilter,smooth,etc.).

Thankstoinnovativethinking,manufacturerstransformedcigarettesintosmallcigars,acategorythatis

lessregulatedthancigarettes.Thishasallowedwhatareessentiallybrowncigarettestobesoldinsingle

sticks(asopposedtopackof20or25)andwithoutanyhealthwarningwhatsoever.Moreover,manyof

todaysnewproductsdistancethemselvesfromthosethepublichasbeencautionedagainst;especially

sincemanypeoplemistakenlybelievenewproductsareapprovedbyauthorities.Infact,marketersare

sowickedlycreativethattheabundanceofnewkeepsConvenienceStoreMagazinesmilingabout

thetobaccocategory,andthisdespitediscussionsoncategorykillinglegislationandothertobacco

controlmeasures.6

Theygener teinterest

Innovationisintegraltothemarketing

oftobacco.Theintroductionofnew

productsenablesmanufacturersto

reinventandmodernizetobacco

productsandtheimagesassociated

withtobaccouse,especiallytoattract

newsusers.Accordingtoadocument

updatingBATmarketingstrategy,

innovationisthedrivingforcebehind

premiumbrandsandthecreationof

newmarkets.7

Beitthroughnewpackaging,new

flavours,newbrandnamesor

technologicalinnovations,new

productsaredevelopedtokeepusers

interestedandprovidethemwithalternatives,8especiallyasnewproductsappeartobemore

appealingandconvenientthanthosepreviouslyonthemarket.

Furthermore,todaysnewproductscomeatatimewhenmostgovernmentsarereducingthechannels

tobaccomarketerscanusetopromotetheirproducts,butnewproductsprovideapretexttoreachout

legitimately.Duringtherecentlaunchofanewdesignerstylesuperslimcigarette,HeadofGlobal

CustomerStrategy,Planning,Insights&DevelopmentforBATexplainedthatVogue,andinparticular

British American Tobacco, ca. 2005


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linessuchasEphemre,isallaboutmovingbeyondtobaccotowardsthekindofmerchandisingthathas

servedperfumes&cosmeticswell,anditsaboutnewwaysofengagingwithconsumers.9

Theyincre se sales

Interestoftenleadstotrial.Thesustainedeffortswithwhichtobaccomanufacturersimprovetheir

productsandtheirmarketingundeniablyservestoenhancethesaleanduseoftobaccoproducts.In

recentyears,bothPhilipMorrisInternationalandBATsCanadianaffiliate,ImperialTobacco,have

acknowledgedthatpackagingredesignledtoincreasedsales.10,11

Inmanycases,newtobaccoproductstargetandrecruitnewusers.InQubec,youthsmokingrates

wereindeclineuntilsinglestickandtrialpackflavouredcigarillosmadetheredebutonthemarket.12

Therewerenoadvertisingcampaigns,promotionofcigarilloswasonlyatpointofsaleandcenteredon

theproducts

characteristics

(trial

size

and

flavour).

Similarly,

the

availability

of

multi

flavoured

chew

tobaccocoincideswithincreasedusedandtrialbyyoungCanadians.13IntheU.S.,themarketingof

variousnewmentholatedbrandsisknowntohaveincreasedsmokingratesamongBlackAmericans.14,15

3.An overview of recent int roduct ions

newgimmicks,samedeceptions

Inthelast5years,tobaccomanufacturershaveintroducedhundredsofnewproductstotheCanadian

market.

Products based on technological changes andinnovations

Somenewproductsarepresentedasbeingtheresultofa

technologicalbreakthroughsthatmakethem,inonewayor

another,lessharmfulor,atleast,lessproblematicthanolder

products.The

market

launch

of

cigarette

brands

VitaCig,

AzurandMiragewithitsLessSmokeSmelltechnologyare

illustrativeexamplesofthisploy.VitaCigwithitsvitaminC,

AzurewithitsspinachextractsandMiragewithitsvanilla

pelletfalselyreassuresmokerswhoareconcernedaboutthehealtheffectsofsmokingorsecondhand

smoke,inthecaseofMirage,bysuggestingthatlessharmfulcigarettebrandsareoutthereandcould

beanalternativetoquitting.


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Similarly,ImperialTobaccopromotedthelaunchof

charcoal(activatedcarbon)filterstoitswhitepackage,

FineduMaurierbrand.Carbonfiltersconjureimproved

filtration/purificationcapacities,whichmaymislead

many

to

believe

that

smoke

from

these

cigarettes

is

free

ofmanyharmfulchemicals.Whilecarbonfiltersfilterto

variousdegreessemivolatileandvolatileorganic

compoundsfoundincigarettesmoke,16theirimpactonmanynonvolatilecarcinogeniccompounds

(TSNAsandaromaticamines)isquitelimitedifnotinsignificant17.

Inspring2009,ImperialTobaccoadvertisednewecofriendlycardboardpackagingforsomeduMaurier

cigarettesbysayingthatSmallstepsmakethedifference.18Makingenvironmentalchangesthefocus

ofadvertisingcampaigndownplaysthedestructiveimpactsofcigarettesonhealthandwellbeing.

ImperialTobacco

new

gimmick

may

lull

some

to

consider

the

smoking

of

some

cigarettes

as

compatible

withamodernenvironmentalsoundlifestylechoiceorasbloggerfromEcofriendlyPromos Product

andPromotionsforaGreenerWorldwebsiteputsit: ifyouareacurrentsmokeranddonthaveany

planstoquit,thenitmightbeworthwhiletolightupthesecigarettes...itssortofthelesseroftwo

evils.19

New water-pipe products

Smokingwaterpipes,whichusedtobefoundonlyinshopsand

foodstoresthatspecializedinMiddleEasterngoods,arenow

availableinavarietyofshops,especiallyinQuebec.Merchants

presentwaterpipesmokingasapleasant,exoticandnatural

experience.Thetobaccosoldisamoistblendisusuallyoffered

inavarietyofaromaticfruitflavours(grape,peach,strawberry,

etc.).SomeproductsaresoldasHerbalHookahandcarry

NicotinefreeandTarfreelabels.AccordingtoHealth

Canada data(2006),24%ofwaterpipesmokersmistakenly

believethatthesmokeisfilteredbywaterandisthereforeless

harmfulthancigarettesmoke.20


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New smokeless tobacco products

Widespreadsmokingbansmeansmokershavefewer

opportunitiestolightup.Manufacturersofsmokelessororal

tobaccoproductshaveaggressivelypromotedflavouredandre

packagedchew

tobacco

amean

for

smokers

to

obtain

tobacco

satisfaction.

Moreover,companieshaveextendedmajorbrandlinesto

includesmokelessproductswithleadingcigarettebrandnames.

In2007,ImperialTobaccointroducedregularandmintflavoured

Swedishstylesnusasareducedharmproduct,becauseofits

lownitrosaminecontent.IntheUSandSouthAfrica,wheresnus

hasbeenintroducedwithcigarettebrandnames(Camel,Lucky

Strike)useofsmokelessproductsisontherise,butdoesnotappeartobeproducingdeclinesof

smokingrates.21,22,23,24

New properties (flavours, super slims)

FLAVOURS

Thesale(inpacksorindividually)ofcigarillosskyrocketedin

recentyearsfrom53millionunitsin2001toover403million

unitsin2007.25Cigarillosareparticularlypopularamongyoung

Canadians.26

Increased

consumption

coincides

with

manufacturerslaunchingnumerousfruitandcandyvarieties,

whicharesoldinamusingpackagingthatshowcasestheir

flavour. Thesamecamecanbesaidforchewtobacco

(smokelesstobacco),whereconsumptionofchewingtobacco

risen,reversingasteady7yeardeclinedatingbackto1998.27

Theadditionofsweetnotesandmenthol totobaccoproductsisknowntoimprovethetasteoftobacco

productsandmasktheharshnessofthesmoke,makinginitialexperienceswithtobaccomore

enjoyable.28,29,30


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(a) (b)

(c) (d)

Fromlefttoright:

littlecigarillo,

cigarilloand

conventionalcigarette.

NEWLENGTHS

Manufacturershaveintroducedavarietyofnewwidthsand

lengthsforcigaretteandcigars.Slimcigaretteshave

historicallybeenseenaselegantandsofterfeminine

products.

31

While

many

of

the

recently

introduced

extra

andultraslimproductsstillbareromanticstylelettering,

femininecoloursanddaintierpackaging(a&b),marketers

havealsolaunchedsomelessgenderspecificproducts.

Thankstoinnovativestylepackagingandboldcleanlines,

RBHssuperslimsbrand(c)resemblethetrendyiPodMP3

player.Asgenderbarriersbecomeathingofthepast,

marketersupdateimagerytogobeyondgenderbarriers(d).

Orasonetobaccoindustryanalystcommentsthemounting

popularityof

slim

cigarettes

among

men

in

Russia:

Ultra

slimischic,portrayswealthandacosmopolitanattitude.32

Manynewbrandsandvarietiesoflittlecigarscomeinsizes

comparabletothoseofcigarettes,andinsomecases,areeven

shorterthanregularcigarettes.Cigarshavehistoricallybeenless

regulatedthancigarettes,andhaveoftenbeenperceivedasbeing

occasionallyusedproducts,thatarenotasaddictiveascigarettes.

Manufacturersinundatedthemarketwithcigarettesthatcouldbe

soldas

cigars

that

is

cigarettes

rolled

in

reconstituted

tobacco

as

opposedtopaperandsoldinassinglesticksorininexpensivesmallpacks,

enticingtonewusers. Moreover,anecdotalreportssuggestindoor

smokingbansmaymakeshortercigarettesandcigarsmoreconvenientas

theycanbesmokedmorequicklythanregularandkingsizecigarettes.33,34

Smallerversionsoflargerproductscouldalsobeseenaslessoffensive,less

addictiveandmorekidfriendlythanconventionalcigarettes.

New flavoured rolling papers

Hollowtubeliketobaccowrappersaresoldasdevicesfor

smokingvarioussubstances,includingmarijuana.In1999,

federalgovernmentauthoritiesintheU.S.documentedthe

phenomenonofblunting,wherebyacigarillorodisemptied

ofitscontentsandfilledwithvarioussubstances,mainly


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cannabis.35

Sincethen,manufacturershavedevelopedflavouredrollingpapersandbluntwrappersin

candy,alcoholandfoodssuchaspeanutbutterandjellyorbrownappleBetty

New package shapes, sizes, designs and colours

Restrictionson

tobacco

promotion

and

the

ban

on

sponsorshipanddisplaysatpointofsale,especially,have

deprivedindustryofeasilyrenewedlifestyleimagerythe

longtimebuildingblockfortobaccomarketing.The

industrysnowusesthepackagingofitsproductsto

communicatebrandpersonalityandattributes.

Packagingisfarlessregulatedthanothermediumsof

communication,yetpacksareincreasingactinglikemobile

littlebillboards.

Throughnewpackshapes,designsandopeningsaswellas

revampedstyledgraphics,cigarettepacksaremodernizedandmadetolookliketrendypopulartechno

gadgets(iPods,BlackBerrys,cellphones,etc.).Newdesignsandnewproductcharacteristicsbecomethe

focus(orpretext)ofadvertisingcampaigns,emphasizingtheinnovativeandnovelspiritofthepacks

andtheirproducts.

Brandsperceivedtobeforoldersmokers,aremadetoappealingtoyoungercrowds,thankstographics

andcolours.Manynewpackdesignsconvenientlydistortandminimizetheappearanceofhealth

warninglabels.

New

designs

have

also

enabled

the

industry

to

perpetuate

the

myth

that

light

and

mildcigarettevarietiesdeliverandlowertarandnicotinethanregularcigarettes,despitethe

descriptorwordslightandmildbeingbanned.Newdescriptorwords(smooth,silver,etc.)and

colourgradationschemescontinuetomisleadsmokersintobelievingthatsomecigarettebrandsare

lessharmful(havelowerhealthrisks)thanothers.36

4. Moratoriumdesignandviability

Itisclearthatgovernmentshaveforthemostpartbeenplayingcatchupwiththeindustrysnever

endingabilitytorejuvenateandrenewitsdeadlyproducts.Authoritiescanrespondtoproduct

innovationinseveralways.Thetobaccoindustryissuretolobbyagainstanymeasurethatwould

depriveitofitsformidableabilitytoadaptitselfanditsproductstoongoingregulationandsocialtides.

Someoptionsarelessvulnerabletoindustrychallenges.Itisthereforeimportanttoexaminepotential

responsesintermsoftheirabilitytomeetpublichealthobjectivesandtowithstandthetestof

challengesthatindustrywilllikelyunleash.


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Option A: The status quo

ThefactthatCanadahasbeenbesetbynewproductsclearlydemonstratesthatpublichealthobjectives

cannotbeattainedwiththestatusquo.Newflavoursandpackagingforcigarillosandchewtobacco

havereversedprogressivedownwardtrendsintobaccoconsumptionamongyoungpeople.37,

Industry

couldstill

launch

new

products

to

overcome

new

regulatory

and

legislative

measures,

which

would

only

leadtofurtherunderminingofpublichealthlaw.

Option B: A ban on all tobacco products

Thegovernmentmayeventuallyreachitsobjectivebyprohibitingtheproductionandsaleoftobacco

products.Eventhoughamajorityofsmokerswishtoquitsmoking,thisisadifficultthingforthemtodo.

Amoratoriumonalltobaccoproductswouldmakeaccesstotobaccodifficultandhazardous.The

suddendisappearanceoftobaccoproductswouldnotmakethedemandforthemdisappearsince

smokersare

physiologically

addicted

or

may

not

be

ready

to

quit.

Many

smokers

would

turn

to

illicit

productstoensuretheirsupplyoftobaccoproducts.Currently,contrabandaccountsforapproximately

30%ofthemarketbutwithacompleteban,thatpercentagewouldsoarto100.

Option C: A moratorium on new tobacco products wit hout an exempt i on prov ision

Amoratoriumonallnewtobaccoproductswouldtargetonlyproductsthatarenot(yet)soldinCanada.

Themoratoriumwouldnotofitselfprovokecontractionofthecurrentmarketforlocalandforeign

manufacturersasonlythemoratoriumwouldonlybarentrytoproductnotasyetsoldinCanada.A

moratoriumonnewtobaccoproductswouldprovideregulatorstimeforreflectionandfordevelopinga

moreeffectiveframeworkfornewproducts,whilenotallowingthesituationtoworsen.Specific

measurestomanagetherisksassociatedwithnewproductscouldbedevelopedanimplemented.

Option D: A moratorium on new tobacco products wit h an exempt i on prov ision

Ascomparedwithamoratoriumwithnoexemptionprovision,amoratoriumthatwouldallowan

exemptionprovisionwouldbe,intheory,lessrestrictivetocommerce.Ifnewproductsarebarredfrom

marketentrygiventheirnegativeeffectonpublichealth,productswithapositiveimpactshouldbe

allowedonthemarket.Themoratoriumshouldincludeamechanismorprocessallowingexempted

productsto

enter

the

market.

Such

amechanism

would

confirm

the

moratoriums

health

goal

and

refuteitsopponentsclaimofprotectionism,apower.

Fromaprecautionaryperspective,conditionsofexemptionsshouldbeasfollows:


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Furthermore,thegovernmentshouldseektomitigatetheeconomiclossesensuingfromamoratorium

onnewproductsbygrantingareasonabledelaybetweenthemoratoriumsintroductionandits

application.Thiswouldenablemanufacturerswhohavebegunmarketingnewproductstocomplete

theseinitiativesbeforethemoratoriumcomesintoforce.Theywouldhaveanopportunitytorecover

(or

earn

a

profit

from)

amounts

already

invested

in

the

development

of

these

products.

A

six

month

delaywouldbereasonable.Manufacturersmayberequiredtosubmitevidencethatsuchproduct

developmentwasalreadyunderwayandfairlyadvanced.

5.Precedents

Authoritieshaveprimarilyestablishedmoratoriumstodealwithsituationswhererisksare

undetermined,irreversibleorlikelytoworsenhumanandenvironmentheath.Inmanycases,thehave

affordedregulatorsthetimeneededtodevelopaproperresponse,whilenotallowingriskstoamplify.

Thefollowing

section

outlines

several

well

document

moratoriums,

some

were

in

force

for

short

time

periods,othersforyearsandsomeappeartobepermanent.

1) Therapeuticuse.AtobaccoproductthatreceivesanoticeofComplianceandaDrugIdentification

Number(DIN)fromtheTherapeuticDrugsDirectorateofHealthCanadashouldbeallowedonthemarket.

Whiletherewouldnotnecessarilybepublichealthbenefit,thiswouldguaranteethataproductreceiving

thisexemptionhadmetthesamesafety,efficacyandqualitystandardsthatweexpectofother

therapeuticdrugproducts.Infact,promotionforsuchproductsisinmanycaseslessregulatedthanitis

fortobaccoproducts.

2) ProductsacceptedbytheMinisterofHealth.Anytobaccoproductforwhichclearevidence,acceptedby

theMinisterofHealth,demonstratessubstantialpublichealthbenefitinalargehumanpopulationshould

alsobeallowedonthemarket.Manufacturerswouldhavetodemonstratethatsuchproductswere:

I. wereinuseformorethantwoyearsinahumanpopulationofmorethantwomillionpeople;

II. result,inthehandsoftheuser,inareductionofpersonalriskforusersascomparedwithcurrent

tobacco;

III. leadtoareductiontobaccorelatedmorbidityandmortality,meaningoveralldecreasein

tobaccocausedharminthepopulation;

IV. causeslesssofharmfultobaccoproductsinthepopulation;

V. notincite,eitherdirectlyorindirectly,apersonwhoisnotaddictedtonicotinetotrythenew

productand

that

its

availability

on

the

market

should

not

encourage

the

use

of

other

tobacco

products.

3) Productsmodifiedbylaw.Productswhicharenewbecauseofrequirementsstemmingfromhealth,

safetyandotherlawsandregulations.Legalrequirementsaffectinghealthwarnings,taxmarkings,

packagingstandards,etc.wouldbedefinitionalsomodifyexistingproductsintonewproducts.Such

productsshouldalsobeallowedonthemarket.

4) Productswhicharenewbecauseoftheoriginofthetobacco.(Discussedlater)


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Pig farming

Quebecimposedamoratoriumonswineproductionfrom2003to2005.38Aspartofthemoratorium,

thegovernmentallowednonewpigfarmingtooccur,limitingactivitiestothosethatwerealreadyin

place.Themoratoriumallowedauthoritiestodevelopamoreeffectiveframeworkforoverseeingagri

foodactivities

which,

until

then,

had

attracted

several

complaints,

including

health

concerns

related

to

airandwatercontaminationfromthespreadingofpigmanure.Themoratoriumwasliftedin2005,once

governmentannouncedtighterrestrictionsovermanurespreadingandlimitedthenumberofpigsthat

canberaisedincertainregions.

Spraying of certain cosmetic herbicides

In2006,QuebecbecamethefirstjurisdictioninNorthAmericatobanthesaleanduseofmost

herbicidesusedforresidentiallawncare.Over200productswerepulledfromtheshelves.Herbicides

containingactive

ingredients

2,4

D,

MCPA

and

Mecoprop,

were

prohibited

until

such

time

as

recognized

agenciesreevaluatedtheirtoxicity.39Inotherwords,severalherbicideswerebannedandthesaleof

otherswassuspendeduntilindependentauthoritiesfoundthemtobesafe.InAugust2008,Dow

AgroSciences,amajormanufacturerofherbicidesfilednoticeseekingcompensationforover2million

dollars,allegingthattheQuebecbanwasinviolationofNorthAmericanFreeTradeAgreement(NAFTA)

becauseitwaswithoutscientificmeritandtantamounttoacompletebanofherbicidesinQuebec.40

Ultraviolet (UV) waste-water treatment

In2006,amoratoriumwasestablisheduntilJune30,2007ontheinstallationofwastewatertreatment

systemsusingultraviolet(UV)rays.Themoratoriumwasextendedforanotheryear,41butliftedonce

newcriteriaandguidelinescameintoforceinOctober2008.Forthemostpart,residentialuseofsuch

technologyhasbeenlimitedtomunicipalities,withothershavingtocedetheirequipmentto

municipalities.42

Inefficient light bulbs

InApril2007,theGovernmentofCanadalaunchedaprocessaimedatphasingouttheuseofinefficient

incandescentlightbulbspriortotheircompletebanin2011.43Theeliminationoflowefficiencylighting

issupported

by

regulation

and

standards

established

as

part

of

Canadas

Energy

Efficiency

Act.

This

phasingoutofaproductandestablishmentofstandardsistantamounttoamoratoriumthatwillpermit

fewerandfewerexemptionsoverthecourseoftime.


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Analog TV transmission

TheFederalgovernmentwillprohibitanalogTVtransmissionasofAugust31,2011,44withthepossible

exceptionofbroadcastinginnorthernandremotecommunities.Itisbelievedthatthisprohibitionwill

furtherencouragehighdefinitiondigitalproductionandbroadcasting.Governmentwillalsoprohibit

simultaneousanalog

and

digital

transmission,

making

older

televisions

(sets

older

than

approximately

15

years)obsolete.Whilenotamoratoriumperse,thismeasureshowshowgovernmentscanshape

markets,bydirectingwhatmanufacturerscanandcantproduce.

The regulation of asbestos in Canada

Aftergraduallycuttingbackthemarketentryofnewasbestosproducts,theFederalgovernment

completelybannedthesaleofconsumerproductscontainingCrocidolitefibers(atypeofasbestos).In

November2007,anamendmenttotheHazardousProductsRegulations(CrocidoliteAsbestos)banned

(withafew

exceptions)

the

import

and

advertising

of

products

containing

Crocidolite

asbestos

fibres

in

partorinwhole.45ItcanbesaidthatamoratoriumwasfirstimposedonthesaleofCrocidoliteasbestos

toindividualsbutnowitalsoextendstoitsimports,saleanduse(bygeneralortrainedusers).

Meanwhile,thesaleofothertypesofasbestosremainspermissiblebylaw.46

Shops specializing in tobacco products

ThemoratoriumconceptisimplicitlyimplementedinQuebecstobaccolegislation.Ineffect,only

specializedshopsandcigarsalonsthatexistedin2005,andwhichabidedbycertainrestrictions,are

allowedtocontinuetheiroperations(withoutexpandingtonewlocations).47Theopeningofnew

establishmentsofthistypeisprohibited.

New types of products containing nicotine or tobacco

Theconceptoflimitingthemarkettocurrentlyavailabletobaccoproductsisnotnew.Asearlyas1989,

Norwayenactedaregulationthatprohibitedthesaleofallnewtobaccoornicotinecontaining

products.48Theregulationtargetedthesaleoftobaccoproductsotherthancigarettesandchewing

tobacco,butomittedtoincludenewproductbrands.

Section

3.

DefinitionsIn these regulations, the term new types of tobacco and nicotine-containing products

means all products containing tobacco or nicotine, with the exception of the products which,

by tradition, are or have been sold in Norway (cigarettes, cigars, cigarillos, smoking tobacco,

chewing tobacco and snuff).

MinistryofHealthandCareServices,Norway, 1989


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Sweet, candy, and liquor-flavoured tobacco products

Theprohibitionincertainjurisdictionsoftobaccoproductswithsweetorcandyflavours(withthe

exceptionofmentholflavouredproducts)isaquasimoratorium.Generallyspeaking,themarketingof

tobaccoproductsflavouringwithfruit,sweetandcandyaromasisarecentphenomenon,makingsuch

productsrather

new.

The

state

governments

of

South

Australia,49

New

South

Wales50

and

the

AustralianCapitalTerritory,havebannedthesaleoffruitscentedcigarettes,withTasmania51extending

thebantoalltobaccoproductsandrollingpapers.IntheU.S.,Maine52banstheimportandsaleof

cigarettesandcigarsthatcontainaconstituentthatimpartsacharacterizingflavorotherthanthoseof

tobacco,menthol,clovecoffee,nutsorpeppers,exceptforthosethatwereonthemarketpriorto

1985.Thus,olderbrandsofmentholatedandflavouredcigarettesorcigarsremainlegal.

Oral tobacco products

Oraltobacco

products,

commonly

referred

to

as

smokeless

tobacco

products

(including

the

Swedish

inspiredSnus),areprohibitedinthememberstatesoftheEuropeanCommunityotherthanSweden,

NewZealand,Australia,HongKong,Japan,Switzerland,andIsrael.53Theseproductsareprohibitedeven

ifthelaunchofnewbrandsofcigarettes,waterpipes,andothercombustibletobaccoproductsis

permitted.

TheprohibitioninEuropehasbeenchallengedinthecourts,notablybySwedishMatch,the

manufacturerofSnusinSweden.In2004,theEuropeanCourtofJustice,theEUshighesttribunal,

upheldtheEuropeanbanonoraltobaccoproducts.54Thecourtstatedthateventhoughoraltobacco

productsare

not

fundamentally

different

in

their

composition

or

use

from

products

that

are

not

banned,

theywerenotinthesamesituationasthelatterwhenthebanlegislationwasadopted.55Thesewere

newproductsontheEuropeanmarket,whichmakesthemdifferentandjustifiesthedifferenceinthe

wayoraltobaccoproductsaremanaged.

Bottled water containing nicotine

Finally,itisworthnotingthattheUnitedStatesprohibitsthesaleofbottledwatercontainingnicotineas

wellasnicotinelacedlollipops.56Theseproductsappearedonthemarketaftercigarettes,cigarsand

smokelessproducts.


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6.Canadianandinternationallegalframework

Federal Tobacco Act

Cigarettemanufacturershavenevercontestedsection5ofthefederalTobaccoAct,whichgivesthe

governmentthepowertoprohibitallorcertaintobaccoproducts:

5. No person shall manufacture a tobacco product that does not conform with the standards

established by the regulations.

Thereiscurrentlynojurisprudencecitingsection5.

Canadian Charter

Therightsandlibertiesacknowledgedbythechartersarenotabsolute.57Thesemaybelimitedwhenit

isdeemed

necessary

and

justified

to

so

do.

Neither

of

the

charters

provides

for

rights

to

property,

which

isnotarightbutaprivilege.Therefore,theCanadianGovernmentisnotboundtojustifythe

moratoriumonnewtobaccoproductsunderanyrequirementsstemmingfromtheCanadianCharterof

RightsandFreedoms.Morespecifically,theCharterdoesnotpreventauthoritiesfrombanningproducts

whicharetheresultoftechnologicalinnovationsandproductinnovations. Shouldnewtobacco

productsbeapprovedasamedication(i.e.astherapeuticsupporttoquitsmoking),theywouldbe

exemptedfromthemoratorium.SuchproductswouldthenbegovernedbytheCanadasFoodand

DrugsAct,andtheirpromotionwould,forbetterorforworse,besubjecttoregulationsgoverning

drugs.

Modifications to illustrations, packaging and trademarks

Thepackaging,illustrationsandgraphicsthatoftenaccompanytrademarksarewidelyconsideredaform

ofexpression.Accordingly,manufacturersmayarguethatthemoratoriumpreventsthemfrom

upgrading,expressingand/orbenefitingfromtheirtrademarks,whichintheoryareprotectedbythe

CanadianCharter.Theindustrysclaimsmaynotbeallthatviablegiventhatinitdecisioninsupportof

theFederaltobaccolegislationin2007,theSupremeCourtofCanadacharacterizedadvertisingof

tobaccoproductsaspossessinglowvalue.58

Furthermore,bansonfreedomofexpressionarealwayseasiertoacceptwhentheyaredeemedtobe

theleastrestrictiveoption.Amoratoriumonnewproductsisjustthat,becausetheonlyformsof

expressiontobeprohibitedarethosethathaveyettobeusedcommercially.Manufacturerscould

continuetomarketandprofitfromtheformsofexpressionalreadypresentinthemarketpriortothe

cutoffdate.Thisaspectofthemoratoriumrepresentsanothersolidrebuttaltoargumentsbasedonthe

Charter.


16/29

16

Framework Convention on Tobacco Control (FCTC)

LikeCanada,166ofthe192WorldHealthOrganisationmemberstatesarepartiestotheFramework

ConventiononTobaccoControl(FCTC).Article2ofthetreatyencouragescountriestoimplement

measuresbeyondthoserequiredbythisConventionanditsprotocols.59Withpublichealthbeingthe

solemotivatingfactorforamoratorium,governmentsshouldinsistthatanyfuturedisputesarisingfrom

themoratoriumbesettledthroughthemechanismestablishedinarticle27oftheFCTCratherthan

thoseofotherinternationalagreements.Aframeworkthatdoesnotpitpublichealthinterestsagainst

otherinterests,especiallycommercialones,bestservesPublicHealth.Themoratoriumwouldtherefore

bejudgedonitsconformitytotheguidelinesandobjectivesoftheFCTCandnotvarioustrade

agreements.UnderFCTCsarticle5,PartiesoftheFCTCshallacttoprotect[thesettingand

implementingoftobaccocontrolpolicies]....fromcommercialandothervestedinterestsofthetobacco

industry

in

accordance

with

national

law.

60

The

FCTCs

language

validates

the

moratoriums

unique

abilitytoeliminatefutureharmsgeneratedbytheindustrysabilitytoinnovateandreinventitselfand

itsproducts.Indeedarticle3urgesgovernmentstoimplementproactivemeasures:Theobjectiveof

thisConventionanditsprotocolsistoprotectpresentandfuturegenerationsfromthedevastating

health,social,environmentalandeconomicconsequencesoftobaccoconsumptionandexposureto

tobaccosmoke...inordertoreducecontinuallyandsubstantiallytheprevalenceoftobaccouseand

exposuretotobaccosmoke.61

CountriesthathavenotsignedtheFCTCarelikelytopushforanarbitrationprocessotherthanthat

providedfor

under

the

FCTC.

Countries

that

tend

to

oppose

anti

tobacco

measures

vociferously

and

whicharemembersoftheWorldTradeOrganizationbutnotpartiestotheFCTCaretheUnitedStates,

theDominicanRepublicandIndonesia,andforthisreasontradeargumentsandagreementsareofvital

consideration.

7.Internationaltradeagreements

Themoratoriumdoesaffecttrade,butisneverthelessnecessaryandjustifiable.Countriesmayargue

thatamoratoriumonnewtobaccoproductspreventsnewplayersfromenteringthemarket,andis

thereforeaprotectionist

measure

or

quota

parading

sapublic

health

measure.

Trade

challenges

such

as

thiscouldbelaunchedagainstCanadaandfiledtoDisputeSettlementbodyoftheWTO theAppellate

Body.CountriesfoundtoviolateWTOagreementsandunsuccessfulatachievingexemptions,face

compensatorypaymentsortradepenaltiesthatareusuallyretaliatoryinnature(i.e.leviesagainst

exportstosomecountries).Industries,andthetobaccoindustryinparticularhasbeenknownto

orchestrateimpressivepublicrelationcampaignstoscareoffpublicandpoliticalsupportinfavouroffor

genericpackaging.62


17/29

17

Todecreasethelikelihoodofcountrieslaunch,letalone,winsuchtradedisputes,Canadawouldneedto

designthemoratoriuminamannerthatallowsittoadheretothetermsandprinciplesoftheWTO

agreementstothefullestpossibleextent.Thismeansimposingthefewestpossiblelimitationsontrade,

complyingwith

the

principles

and

criteria

of

trade

agreements

or

meeting

criteria

to

be

exempted

from

them.

World Trade Organization (WTO) Agreements

Morespecifically,themoratoriumwouldhavetocomplywiththe21agreementsCanadahassigned

withtheWTOaswellascommitmentsundertheNorthAmericanFreeTradeAgreement(NAFTA)and

thebilateralagreementssignedwiththeEU,Colombia,Chile,CostaRica,JordanandIsrael.63,64 While

eachtradeagreementhasitsparticularities,allsharesomeelements,oftenreferredtoasguiding

principles.ThemoratoriumadherestotheguidingprinciplesoftheWTOTradeAgreementsinthe

followingmanner:

TheMostFavouredNationprinciple:

Tradeagreementsensureidenticaltreatmentforallparties.Amoratoriumwouldbegivingidentical

treatmentforallpartiesasallnewproducts,brandsandpackagingbetheydomesticorforeign

wouldbebanned,basedonthepublichealthrisksthatareassociatedwithinnovationsandnottheir

countryoforigin.

TheNational

Treatment

principle:

Undertradeagreements,countriescannotprovidepreferentialtreatmenttodomesticplayers,unless

otherwiseagreedto.Amoratoriumwouldgivedomesticandforeignmanufacturersequaltocompetein

theCanadianmarket.Theapprovalofnewproductexemptions,ifapplicable,shouldbeissuedin

reasonableandequaltimeframes,regardlessofaproductsorigin.Likewise,thecomingintoforceofthe

moratoriumshouldbethesameforallproductcategories,topreventanyinstancesofpreferential

treatment.

Theprinciple

of

prohibiting

quotas:

no

volume

restrictions

on

imports

Therearecurrentlybothdomesticandforeignproductsavailableonthemarket.Themoratoriumwould

nothaveanimpactinthisregard,norwoulditpreventexistingproductsfrombeingmanufacturedas

theyarepresently,indomesticorforeignplants.Themoratoriumcanthereforenotbeunderstoodas

anabsolutequantitativerestrictionakintothesettingofquotas.


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18

Theprinciplesoftransparencyanddisguisedrestrictions

Theadoption,implementationandmonitoringofthemoratoriumshouldstemfromaclear,publicand

transparent

process.

65

Ideally,

the

moratorium

should

be

subject

to

a

recommendation

from

Parliament.

Exemptionsanddelaysforintroductionshouldbethesameregardlessoftheproduct,categoryororigin

ofthemanufacturer.Asmentionedpreviously,governmentsshould,onthebasisofstrictcriteria,allow

manufacturerswhohavebegunmarketingnewproductstocompletetheseinitiativesbeforethe

moratoriumcomesintoforce.Theywouldhaveanopportunitytorecover(orearnaprofitfrom)

amountsalreadyinvestedinthedevelopmentoftheseproducts.

ThePrincipleofsimilartreatmentforsimilarproducts:Policiesandmeasuresmusttreatlike

productsinalikemanner.

WTOjurisprudence

illustrates

that

with

the

exception

of

afew

notable

instances,

products

consisting

of

similarmaterialsordestinedformoreorlessthesameuseareconsideredlikeproducts.66

Inother

words,theWTOdeemsthatallowingthemarketingofcertaincigarettebrandswouldlikelyrequirethat

themarketingofallcigarettebrandsbeauthorized,giventhattheseproductswouldbeconsidered

similarratherthannewordifferent.Industrywouldsurlyraisethisargument.

Itcouldbearguedthatnewproductsareoftentheresultofindustrysadaptationtotobaccocontrol

measures,andtheythereforeconstitutegreaterrisksthathasyettobeaddressedbygovernment

measuresandinformationcampaign.Indeed,comprehensivetobaccopolicies,lawsandprogrammes

willgradually

lead

to

declines

in

both

the

supply

and

demand

for

current

tobacco

products,

but

the

most

effectivewayofpreventingnewproductsfrombecomingestablishedandcreatingnewhealthrisksisto

preventthemfromeverreachingthemarket.

InitsjudgmentvalidatingtheEUsbanonsmokelesstobaccoproducts,thehighestcourtinthe

EuropeanUnionstatedthatitdidnotconsiderthisbantobediscriminatory,sincesmokelesstobacco

productshadbeenlaunchedinthemarketaftercombustibleproducts.67Governmentwastherefore

justifiedinprovidingdifferenttreatmenttodifferentproducts.

Nonetheless,there

is

arisk

that

the

WTO

not

extend

this

vision

to

all

new

tobacco

products

or

share

the

EUCourtsopinion.ItisthereforeimportanttodesignthemoratoriumsothatitneednotmeettheWTO

agreements,butinsteadqualifiesasanexemptionunderarticleXXboftheGeneralAgreementon

TariffsandTrade(GATT).

Undercertainconditions,CanadacanbeexemptedfromhavingtocomplywiththeWTOagreements.

TheEUwasgrantedsuchanexemptionwhenitbannednewasbestosproducts,ameasurethatwas

contestedbyanumberofcountries,includingCanada.68Theasbestoscaseisalsorelevanttothe


19/29

19

moratoriuminthattheWTOdiddistinguishproductsthatarebasicallysimilarbytakinginto

considerationtheirdistinctharmfulness.

Leasttrade

restrictive

principle

Internationaltraderegulationsrequirethatgovernmentsreachtheirpublichealthobjectivesbyrelying

onthepoliciesandmeasuresthatrepresentthefewestpossibleobstaclestotrade,evenifthese

alternativesarenotconsideredtobethemostfavourableforpublichealth.69

Bansonsmokingandtobaccotaxesarerecognizedmethodsforreducingtobaccouse;however,theydo

notcounteractthepotentialattractionexertedbythemarketingofnewproducts.Themoratorium

representsasupplementarymeasuredesignedtoworkintandemwithotherinitiativesdevelopedto

countertobaccomarketing.ItalsocomplementstheWHOsrecommendationtobanalltobaccorelated

advertising.70

Undercertainconditions,Canadacanbeexemptedfromhavingtocomplywiththeseagreements.The

EUwasgrantedsuchanexemptionwhenitbannednewasbestosproducts,ameasurethatwas

contestedbyanumberofcountries,includingCanada.71Theasbestoscaseisalsorelevanttothe

moratoriuminthattheWTOdiddistinguishproductsthatarebasicallysimilarbytakinginto

considerationtheirdistinctharmfulness.

Thethree72agreementsmostoftencitedinthevariousdisputesrelatedtopublichealthare:

TechnicalBarrierstoTradeagreement(TBT);73

SanitaryandPhytosanitaryMeasuresagreement(SPS);74

GeneralAgreementonTariffsandTrade(GATT).75

TBTagreement

Thisagreementaimstoensurethatregulations,standards,andtestandcertificationproceduresdonot

createunnecessaryobstaclestotradeorvoluntarilyfavouronecountryoveranother.

Theagreementmakesitpossiblefortradetoberestrictedbyagivenmeasurewhenscientifically

justified.TheTBTagreementstronglyfavourstheuseofinternationalstandards.

Thereiscurrentlynointernationalstandardapprovingtheuseofcertaintobaccoproducts.Instead,

variousjurisdictionschoosetoprohibitorallowcertaintobaccoproductsorproductcategoriesbasedon

theircharacteristics.


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20

CanadawouldhavetojustifywhyconsumersinCanadarequiregreaterprotectionfromnewproducts

thanfromtheproductstheyarecurrentlyexposedto.Themoratoriummaybejustifiedbyalludingto

thehistoryofproductsmarketedasbeinglessharmful,lessaddictive,increasinglynaturalorhelpfulin

quittingsmoking.Amoratoriumwouldlikelyhavepreventedthemarketingofcigarillosthatwill

ultimately

contribute

to

an

increase

in

the

number

of

smoking

related

deaths

in

Canada.

SPSagreement

TheSPSagreementwouldcomeintoplayonlyifthemoratoriumweretolimittheintroductionofnew

productsastheresultofmodifications(voluntaryornot)totobaccoplantsduringproduction.

GiventheimpactoftheSPSagreementontobaccoplants76,itisbeimportanttoanticipatean

exemptionfornewproductsresultingsolelyfromchangestoasupplysourceoranaturalseasonal

variation.Carefulwordingofexemptionsisnecessaryinordertopreventmanufacturersfromtoying

withnicotine

and

other

content

levels

by

switching

tobacco

varieties.

GATTagreement

Aspecialfeatureofthisagreementisthatitcanexemptameasureconsiderednecessaryfromapublic

healthperspectivefromtheobligationsoftheWTOagreementsandfreetradeagreements(for

example,NAFTA).Inthecaseofaneventualdispute(dealtwithbytheWTOarbitrationmechanism,not

thatoftheFCTC),Canadashouldseekthisexemption.

Accordingto

GATT

section

XXb,

members

are

entitled

to

introduce

measures

to

restrict

imports

and

exportsofproductsinordertoprotecthuman,animalorplantlifeorhealth.77Ameasureissubjectto

agreementrequirementsonlyifitmeetstheconditionsprescribedintheintroductiontoarticleXX,

whichreads:

Subject to the requirement that such measures are not applied in a manner which would

constitute a means of arbitrary or unjustifiable discrimination between countries where the

same conditions prevail, or a disguised restriction on international trade, nothing in this

Agreement shall be construed to prevent the adoption or enforcement by any contracting

party of measures: .

(b) necessary to protect human, animal or plant life or health...78

ArticleXXdoesnotincludeanobligationtoquantifytherisktopeopleslivesorhealth.Thisriskmust

simplybedemonstrated.Themorecriticalameasureistohealthprotection,themorelikelyitisthatan

exemptionwillbegranted.


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21

ThenonpreferentialandnonprejudicialcharacteroftheproposedmoratoriumpresumesthatCanada

maybeeligiblefortheexemptionprovidedforunderarticleXXboftheGATT.Thebanonallnew

tobaccoproducts(withexemptions),regardlessofform,originorappearance,onthebasissolelyofits

existenceinCanadianmarketpriortothecutoffdate,strengthensthemoratoriumwithregardto

disputes

in

relation

to

trade

agreements.

TheWTO,however,hasonlygrantedone(1)oftheeleven(11)exemptionsrequestedpriorto2000

(asbestos).Whilejurisprudencedoesnotleantowardspublichealthmeasures,thecomingintoforceof

theFCTC,aninternationaltreatysignedbynearlyallpartiestotheWTOagreements,givesasignificant

boosttoantitobaccomeasures.Overtime,theFCTCmaycometobeconsideredaninternational

standard,thatis,animportantcriterionforbenefitingfromexemptionXXb.

Thegovernmentwouldneedtodemonstratethatthemoratoriumisscientificallyjustifiedand

necessary.Themoratoriummeetsthesecriteriabecause:

themeasureisefficientandtherearenolesstraderestrictivemeasuresthatcanachievethe

desiredobjective;

themeasuredoesnotconsistofadisguisedobstacletotradeorconstitutearbitraryor

unjustifiablediscrimination;

1. theintroductionofamoratoriumisacommonpractice,showntobeeffectiveinmanaging

publichealthrisks;

2. themoratoriumwouldpreventthemarketingofproductsthatmaycontributetoan

epidemic;

3. themosteffectivewayofpreventingdependencywithregardtonewaddictiveandfatal

productsistopreventthemfromenteringthemarket.

NAFTA and the rights of investors

Section1139ofNAFTAschapter11proposesaratherbroaddefinitionoftheterminvestment.79In

fact,aninvestmentisdeemedtoincludeacompany,aloantoacompany,theownerofaninterestina

multinationalcompany,operatinglicenses,patents,trademarksandcopyrights.80,81Theexemption

providedfor

under

article

XXb

of

the

GATT

does

not

extend

to

the

guarantees

covered

by

chapter

11

of

NAFTA.

ContrarytothedisputesreportedtotheWTO,NAFTAallowsinvestorsfrommembercountries(Mexico,

theUnitedStatesandCanada)tofileacomplaintagainstthegovernmentofanothercountry,without

mediationorsupportfromitsowngovernment.Canadian,MexicanorAmericantobaccomanufacturers


22/29

22

anddistributorswhobelievethattheyhavebeenharmedbyaregulationthatamendstheoperating

conditionsoftheircompaniesarelikelytoinitiatealawsuitandclaimanindemnityfromthe

governmentinquestion.Tobaccomultinationalswouldarguethatthemoratoriumwouldreducethe

futurevalueoftheirinvestmentsinCanada. NAFTAprovisionsthatmayverywellbekeyfactorsina

dispute

on

the

moratorium

are

articles

1102,

1105

and

1110.

NationalTreatment(article1102)82

Majormanufacturers,alongwithsmallforeignmanufacturers,canarguethatthemoratoriumprevents

themfromenteringtheCanadianmarketbyprohibitingthemfromcompetingwithexistingproducts

throughtheintroductionoflikeproducts.UsingtheEuropeanCourtrulingonthebanonsmokeless

productsinEUStates(exceptforSweden),itcanbearguedthatpre andpostmoratoriumconditions

arenotlikecircumstancesasmentionedinarticle1102andthatthereisnoprejudiceorless

favourabletreatmentforsmallorlargemanufacturersofnewproducts.

Obligationswithregardtotheminimumstandardoftreatment(article1105)83

Atransparentprocess,theperiodbetweentheadoptionofthemoratoriumanditscomingintoforce,

andthepossibilityofmarketingaproductthatmeetsexemptioncriteriaareallfactorsattestingtothe

implementationingoodfaithofregularlegislation.AsspecifiedbytheNAFTAFreeTradeCommissionin

July2001,partiestoNAFTAarenotrequiredtoprotectinvestorsrightsin addition to or beyond that

which is required by the customary international lawminimum standard,84

meaningthestandard

isnotasspecificorsuperiortotheprinciplessetoutbyNAFTAandtheWTOagreements.

ExpropriationandCompensation(article1110)

85

AccordingtoananalysisbyCanadasDepartmentofForeignAffairsandInternationalTrade,under

section1110,noPartymaydirectlyorindirectlynationalizeorexpropriateaninvestmentofaninvestor

ofanotherPartyinitsterritoryortakeameasuretantamounttonationalizationorexpropriationofsuch

aninvestment,except:

forapublicpurpose;

onanon

discriminatory

basis;

inaccordancewithdueprocessoflawandArticle1105(1)(minimumstandardoftreatment);

and,

onpaymentofcompensation.86

Amoratoriumisapublicpolicyinstrumentwhichdiscriminatesonthegroundsoftemporal(beforeand

afterthemoratorium)ratherthangeopoliticalbarriers.Provisionsforexemptiontothemoratoriumalso


23/29

23

complywiththeobligationsandwilloftheFCTCandseeminglyandmostimportantly,therequirements

providedforinarticleXXboftheGATTagreement.

Accordingtothecourtscreatedunderchapter11ofNAFTA,expropriationexistswhenameasure

preventsacompanyfrombenefitingfromthevastmajorityofitsactivitiesandearnings,ratherthan

whenitsimplyleadstoareductioninitsactivitiesandearnings.87Themoratoriumwouldnotprevent

tobaccomultinationalswithexistingaccesstotheCanadianmarkettocontinueearningprofitsfromthe

saleofproductsandbrandswhichtheyalreadymarket.Themoratorium,whilepreventingdomesticor

foreigncompaniesfromcarryingoutfuturedevelopment,wouldnonethelessenablethemtocontinue

marketingproductsexemptedfromthemoratorium.

MajormanufacturersmayrelyontheirfacilitiesinMexicoortheirpartnershipswithU.S.basedinterests

tofileadisputeandrequestcompensationforthelossesresultingfromtheprohibitionofapplyingtheir

trademarktonewtobaccoproducts.Theywouldundoubtedlyevaluatetheirlossesinthehundredsof

millionsofdollars.Yetevenifmanufacturersweretowintheircaseincourt,themoratoriumcouldbe

upheld.

Thegovernmentcouldcallforaminimalindemnityorevennocompensationatall,arguingthat:

1. thereshouldbenopositivevalueassociatedtofuturesalesofproductsacknowledgedtocause

preventablediseaseanddeaths;

2. manufacturersarefullycognizantoftheexistenceofpublicpoliciesdesignedtoreduceoreliminate

theirmarket,yetcontinuetoinvestinit;

3. productsthathavenotyetbeenintroducedintheQuebecmarketareofpurelyspeculativevalue;

4. contrarytoaban,amoratoriumdoesnotconstituteanexpropriation.Amoratorium,inandof

itself,wouldnotresultintrademarksorbrandsbeingremovedfromthemarket.Amoratorium

wouldhavenoimpactonproductsthatarealreadypresentinthemarket.

8.Whichcountrieswouldchampionthetobaccoindustry?

OnlyWTOmembercountriescanfileadisputewiththeWTO.Countriesthatdecidetochampionthe

cause

of

tobacco

manufacturers

would

certainly

be

poorly

regarded

by

their

own

population

and

the

internationalcommunity.EvenSwedishmanufacturersdidnotsucceedintheirattemptstoconvince

Swedentocontestthebanonsnusinseveralcountries,onthebasistheWTOagreements


24/29

24

MajormanufacturersandNAFTA

Themoratoriumwouldtoacertainextentprotecttheadvancesmadebymajormanufacturers.Itwould

increasethevalueofexistingtrademarksandproductswhileshelteringthemfromcompetingproducts

thatarejustasdetrimentaltopublichealthbutofferedatalowerprice.Inaddition,sincethe

moratoriumdoesnotbanthemarketingofexemptedtobaccoproducts,manufacturerscannotargue

thatitpreventsthemfromsellinglessharmfulproducts.

SmallmanufacturersandNAFTA

Intheshortterm,themoratoriumismostlikelytobedisputedbysmallU.S.andMexicanmanufacturers

aswellasAmericaninvestorsinAboriginalmanufacturersonthebasisofNAFTA.TheseCanadian,U.S.,

orMexicaninvestors,however,maybereassuredbythefactthattheCanadianmarketwouldnotonce

againbebesetbynewproductsfromAsia,theMiddleEast,andelsewhere.

Disputes

Inthebestcasescenario,themoratoriumwouldnotbedisputed.Afterall,thelawprohibitingtobacco

productsfrombeingdisplayedinplainviewinretailoutletswasnotdisputedbyanycountryorinvestor

underNAFTA.Likewise,nocigarmanufacturerorexportingcountrydisputedthemoratoriumon

specializedtobaccoshopsinQuebec.

Intheworstcase,eveniftherewereanappealunderNAFTAchapter11,themoratoriumwouldstillbe

deemed

a

measure

to

protect

the

public

interest.

Quebec

would

be

required

to

pay

indemnities.

The

periodbetweenthemoratoriumsadoptionanditsimplementationwouldgiveinvestorstimetoadapt.

Theywouldcontinuetobenefitfromearningsfromexistingproducts.Giventhecircumstances,

indemnitiesmaybenearlyinsignificantwhencomparedtothebenefitsofamajordropintobaccousein

Canada,oncetobaccoproductsandtheirmarketingappearoutdatedandanachronistic.

Amoratoriumonallnewtobaccoproducts,whichmayincludeexemptions,appearstobearealistic

meansofprotectingthepublicfromtheundesirable,evencatastrophic,effectsoftheunsupervisedand

poorlystructuredintroductionofnewtobaccoproducts.Thetobaccoindustrymaysufferaseriousblow

from

a

moratorium

on

new

tobacco

products,

particularly

if

other

jurisdictions

follow

suit.

A

moratorium

canbedesignedinsuchawaythatitcanwithstanddisputesfiledbythetobaccoindustryanditsallies.


25/29

25

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22MejiaAetal.,2009.QuantifyingtheEffectsofPromotingSmokelessTobaccoasaHarmReductionStrategy,14World

ConferenceonTobaccoOrHealth,MumbaiIndia,March9,2009.(SmokelessTobaccoSession)

23MejiaAandLingP,2009.Marketingnewsmokelesstobaccoproducts:Insightsfromtobaccoindustryconsumer

researchanddevelopment.14WorldConferenceonTobaccoOrHealth,MumbaiIndia,March9,2009.(Marketingand

NewProductsSession) www.14wctoh.org/abstract/abs_detail.asp?AbstractID=340

24TomarSetal.,2008.IsSmokelessTobaccoUseanAppropriatePublicHealthStrategyforReducingSocietalHarmfrom

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25HealthCanada,2009.Backgrounder AnActtoAmendtheTobaccoAct,May2009. www.hcsc.gc.ca/ahc

asc/media/nr cp/_2009/2009_78bk1 eng.php

26PhysiciansforaSmokefreeCanada,2008.CigarilloSmokinginCanada:AreviewofresultsfromCTUMS,Wave1

2007,

February2008.www.smokefree.ca/pdf_1/cigarillos2008.pdf

27PhysiciansforaSmokefreeCanada,2008.Canadianpercapitaconsumptionofpipe,snuff,chewingtobaccoandcigars

19982007.Factsheet,June2008.

www.smokefree.ca/factsheets/pdf/cigars,%20snuff,%20chewing%20and%20pipe%20tobacco.pdf

28

Harvard

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of

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candy

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brandsspecificallytotargetyouthmarketdespitepromises.PressRelease,November10,2005.

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29LewisMJ,WackowskiO,2006.DealingWithanInnovativeIndustry:ALookatFlavoredCigarettesPromotedby

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Brands.AmericanJournalofPublicHealth2006,96(21)244251.ww.ajph.org/cgi/content/abstract/96/2/244

30WorldHealthOrganization,2007.Thescientificbasisfortobaccoproductregulation.

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31 Slimisforwomen

32TobaccoJournalInternational,2009.Fatcatsgoforslimfilters.July2009.

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33ConvenienceStoreNews,2006.BestnewproductshonoredConveniencestorenewsatthetradeshow,LasVegas,10

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34TobaccoJournalInternational,2009.Fatcatsgoforslimfilters.July2009.

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35OfficeofInspectorGeneral(U.S.),1999.Youthuseofcigars:Patternsofuseandperceptionsofrisk.OfficeofInspector

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http://oig.hhs.gov/oei/reports/oei069800030.pdf


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27

36HammondDandParkinsonC,2009.Theimpactofcigarettepackagedesignonperceptionsofrisk.JournalofPublic

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37PhysiciansforaSmokefreeCanada,2009.SmokelessTobaccoCandycoatingcarcinogens.Factsheet,June2009.

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38Ministredel'Agriculture,desPcheriesetdel'AlimentationduQubec(MAPAQ),2007.Questionsandanswerson

porkproduction.QuestionNo.10.UpdatedNovember26,2007.

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39GouvernementduQubec,2003.Sant,environnementetpesticides:Qubecadoptelesplushautsstandardsen

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40DowAgrosciencesLLC v.GovernmentofCanada.NoticeofArbitrationUnderUNCITRALArbitrationRulesandthe

NORTHAmericanFreeTradeAgreement.August2008. www.international.gc.ca/tradeagreementsaccords

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41GouvernementduQubec,2007.LaministreBeauchampannonceleprolongementdumoratoireconcernantl'installationde

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eaux

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42MinistreduDveloppementdurable,delEnvironnementetdesParcsduQubec,2008.Rglesparticulirespour

lautorisationdessystmesdetraitementdeseauxusestertiairesavecdsinfectionparrayonnementultraviolet(UV)

encequiconcernelesprojetsdeplusde3240litresparjour.Fichetechnique,October2008.

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43G.Lunn,MinisterofNaturalResourcesCanada,2007.LightingtheWaytoaGreenerFuture:CanadasNew

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44BroadcastingPublicNoticeCRTC200753,May17,2007.www.crtc.gc.ca/archive/FRN/Notices/2007/pb200753.htm

45HealthCanada,dateunknown.Substancespecificissues:asbestoscrocidolite.www.hcsc.gc.ca/ewh

semt/pubs/occuptravail/compliconform/asbestoscrocidoliteamianteeng.php

46HealthCanada,dateunknown.Substancespecificissues.www.hcsc.gc.ca/ewhsemt/pubs/occuptravail/compli

conform/asbestospureamianteeng.phpandwww.canlii.org/ca/regu/sor2007260/sec3.html

47GouvernementduQubec,2005.LoisurletabacL.R.Q.,chapitreT0.01,article8.1(3).

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48NorwegianMinistryofHealthCareandServices,1989.Regulationsconcerningtheprohibitionagainstnewtobaccoand

nicotineproducts.Regulationno.1044[1989]www.regjeringen.no/en/dep/hod/Subjects/Folkehelse/NorwaysNational

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49GovernmentofSouthAustralia,2006.TobaccoProductsRegulationAct1997.

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50E.YaminedansTheDailyTelegraph,2007.Flavouredcigarettesfaceban,August13,2007.

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51GovernmentofTasmania,2007.PublichealthamendmentBill2007Act9,ThirdReadingNovember21,2007.

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52OfficeoftheGovernorofMaine,2007.GovernorCelebratesBanonFlavoredCigarettes.PressRelease,September25,

2007.http://mobile.maine.gov/news/?sid=42524


28/29

28

53ChapmanS,2007.Publichealthadvocacyandtobaccocontrol:makingsmokinghistory,Oxford:Blackwell2007,ascited

inhttp://goodhealth.freeservers.com/Snus_Abstract_July_2006a.htm

54TheCourtofJusticeoftheEuropeanCommunities(2004).SwedishMatchABandSwedishMatchUKLtdvs. Secretary

ofState

for

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(DossierC

210/03),

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55Ibid.paragraph71.

56BostonUniversitySchoolofPublicHealthProgram,2002.Newssummary.

www.jointogether.org/news/headlines/inthenews/2002/fdabansnicotinewater.html

57GovernmentofCanada,dateunknown.CharterofRightsandFreedoms:FundamentalFreedoms.Backgroundand

Analysis.TheEffectofSection1oftheCharteronFundamentalFreedoms.UpdatedSeptember1998.http://dsp

psd.pwgsc.gc.ca/CollectionR/LoPBdP/CIR/8416e.htm

58SupremeCourtofCanada,2007.Canada(AttorneyGeneral)v.JTIMacdonaldCorp.,[2007]2S.C.R.610,2007SCC30.

June2007.http://scc.lexum.umontreal.ca/en/2007/2007scc30/2007scc30.html

59

WHO,

2003.

FCTC.

http://whqlibdoc.who.int/publications/2003/9241591013.pdf

60FCTCArticle5

61FCTCArticle3

62PhysiciansforaSmokefreeCanada,2008.ThePlotAgainstPlainPackaging.April2008.www.smoke

free.ca/pdf_1/plotagainstplainpackagingapr1'.pdf

63FortheWTOs21agreements,seewww.wto.org/english/thewto_e/whatis_e/tif_e/agrm1_e.htm

64ForfreetradeagreementssignedbyCanada,seewww.international.gc.ca/tradeagreementsaccords

commerciaux/agracc/index.aspx?lang=eng

65WorldTradeOrganization,dateunknown.UnderstandingtheWTO.Basics.Principlesofthetradingsystem.

www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm

66CallardC,CollishawN&SwenarchukM,2000.Anintroductiontointernationaltradeagreementsandtheirimpacton

publichealthmeasurestoreducetobaccouse.PhysiciansforaSmokeFreeCanada/CommonwealthMedical

Association,April2000,pageiii. www.smokefree.ca/pdf_1/Trade&TobaccoApril%202000.pdf.

67TheCourtofJusticeoftheEuropeanCommunities(2004).SwedishMatchABandSwedishMatchUKLtdvs. Secretary

ofStateforHealth(DossierC210/03),Luxembourg,December4,2004.

http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:62003J0210:EN:HTML

68WorldTradeOrganization,2001.EuropeanCommunities:MeasuresAffectingAsbestosandProductsContaining

Asbestos.Geneva,March18,2001. www.wto.org/english/tratop_e/dispu_e/cases_e/ds135_e.htm



Association,April

2000,

page

10.

www.smoke

free.ca/pdf_1/Trade&Tobacco

April%202000.pdf

70WorldHealthOrganization,2008.WHOwantstotalbanontobaccoadvertising.PressreleaseMay30,2008.

www.who.int/mediacentre/news/releases/2008/pr17/en/index.html

71WorldTradeOrganization,2001.EuropeanCommunities:MeasuresAffectingAsbestosandProductsContaining

Asbestos.Geneva,March18,2001. http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds135_e.htm

72WorldTradeOrganization/WorldHealthOrganization,2002.WTOAgreements&PublicHealth,Geneva,2002,see

page36.www.wto.org/english/res_e/booksp_e/who_wto_e.pdf (ConsultedinOctober2007)

73TechnicalBarrierstoTradeagreement(TBT)


29/29

74 SanitaryandPhytosanitaryMeasuresagreement(SPS)

75GeneralAgreementonTariffsandTrade(GATT)

76AgreementontheApplicationofSanitaryandPhytosanitaryMeasures.UruguayRoundAgreement,WTO,Geneva.(See

AnnexA)

www.wto.org/english/docs_e/legal_e/15sps_01_e.htm

77GATT,1947.GeneralAgreementofTariffsandTrade(GATT,1947),textesjuridiques,ArticleXXb.

www.wto.org/english/docs_e/legal_e/gatt47_02_e.htm

78Ibid.,ArticleXX

79NorthAmericanFreeTradeAgreement.www.naftasecalena.org/en/view.aspx?



Association,avril2000,page17.www.smokefree.ca/pdf_1/Trade&TobaccoApril%202000.pdf

81LeministreduDveloppementconomique,del'Innovationetdel'ExportationduQubecqualifielesdispositionssur

letraitementdevanttreaccordauxinvestisseursdesautrespartiescommetanttendues.SeeNAFTA Chapter11

oninvestments.

Agreements

and

trade

disputes:

context.

Updated

in

December

2007.

www.mdeie.gouv.qc.ca/index.php?id=2064arge

82NorthAmericanFreeTradeAgreement,Article1102. www.naftasecalena.org/en/view.aspx?

83Ibid.Article1105

84NAFTAFreeTradeCommission,2001.NotesofInterpretationofCertainChapter11Provisions,July2001.

www.international.gc.ca/tradeagreementsaccordscommerciaux/disp diff/naftainterpr.aspx?lang=eng

85NorthAmericanFreeTradeAgreement,Article1110

86ForeignAffairsandInternationalTradeCanada.InternationalTradeAgreementsandLocalGovernment:AGuidefor

CanadianMunicipalities.AnnexB:OverofNAFTAChapter11SubstantiveProvisions.ScopeandCoverage.Seearticle

1101.Ottawa,updatedFebruary2008.www.international.gc.ca/tradeagreementsaccords

commerciaux/ressources/fcm/annexB.aspx?lang=eng(Consulted

in

February

2008)

87ForeignAffairsandInternationalTradeCanada.InternationalTradeAgreementsandLocalGovernment:AGuidefor

CanadianMunicipalities.AnnexB:OverofNAFTAChapter11SubstantiveProvisions.ScopeandCoverage.Seearticle

1101.Ottawa,updatedFebruary2008.www.international.gc.ca/tradeagreementsaccords

commerciaux/ressources/fcm/annexB.aspx?lang=eng

Documents

Moratorium Septemer2009