The Campaign for Tobacco Free Kids released the following statement on April 28, 2000:
Contact Judith P. Wilkenfeld (Director, Campaign’s WHO/Framework Convention Initiative) for more information
The Campaign for Tobacco Free Kids is deeply disappointed that the Administration has negotiated with China for a significant reduction in its tariffs on tobacco and tobacco products, as disclosed in the recently declassified text of the agreement now before Congress. Smoking in China is already predicted to claim the lives of more than 150 million current smokers and more than 50 million of the children alive in China today. While it was not the intention of the Administration to affect smoking rates in China, we believe that the proposed tariff reductions could have that result. If this were to occur by "only" one or two percent, millions of additional deaths will result.
Should this agreement be approved, we will call on the Administration and Congress to waive enforcement of the tobacco-related provisions in the bill unless the Department of Health and Human Services can demonstrate that they promote public health. If the trade pact is ultimately rejected by Congress, we will urge the Administration to abstain from seeking increased market access for tobacco products in future negotiations.
China: Why Trade Policy Affects Public Health
Econometric research in other markets forced open by U.S. trade pressure (Thailand, Japan, South Korea and Taiwan) found that the average increase in per capita cigarette consumption attributable to U.S. tobacco trade actions was 10 percent. Providing open access to China’s vast existing and potential tobacco market will create a huge economic incentive for domestic and foreign companies to compete aggressively for "new smokers," which in China means targeting traditionally nonsmoking women and children. Increased competition will also make highly sophisticated Western cigarettes much more available. Cigarettes such as Marlboro are carefully engineered to create and sustain addiction, and include flavorings and other additives that make them more appealing than Chinese cigarettes to traditionally nonsmoking women and children.
Lower tariffs and increased competition will also create more intense price competition and thus lower cigarette prices. Price is known to be an enormous factor in smoking prevalence and cigarette consumption, especially in developing nations and among children. Finally, trade pressure on China’s domestic tobacco monopoly will inevitably lead it to compete aggressively in the cigarette export market to make up for lost market share. Logical targets for China’s cigarette exports are other developing nations in Asia and beyond. This likely transformation of China’s enormous monopoly into a global competitor means that forcing increased access for Western cigarettes in China is likely to be a public health catastrophe both for China and the world.
When U.S. Trade Policy Conflicts with Public Health
The Campaign believes that when U.S. trade policy conflicts with public health interests, concern for human life and public health should take precedence over other goals such as increased market access for the U.S. tobacco industry. In no case should the United States take any action that has the effect of increasing tobacco consumption overseas.
The entry of multinational tobacco companies in previously closed markets has been shown to increase tobacco use within those markets. Therefore, the United States should not seek to lower foreign tariffs or other trade barriers on tobacco products - even if those policies were developed for protectionist purposes - if those barriers are applied equally to all foreign countries. In all other cases, the United States should not seek to break down tobacco-related trade barriers unless the Secretary of Health and Human Services determines that the trade action does not pose a threat to public health by stimulating higher rates of tobacco use. Tobacco trade policy decisions should be dealt with openly with ample opportunity for public input, and the reasoning behind any decision should be made public before any action is taken.