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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.
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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
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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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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
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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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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
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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
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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
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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.
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25
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28
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56BostonUniversitySchoolofPublicHealthProgram,2002.Newssummary.
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59
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60FCTCArticle5
61FCTCArticle3
62PhysiciansforaSmokefreeCanada,2008.ThePlotAgainstPlainPackaging.April2008.www.smoke
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63FortheWTOs21agreements,seewww.wto.org/english/thewto_e/whatis_e/tif_e/agrm1_e.htm
64ForfreetradeagreementssignedbyCanada,seewww.international.gc.ca/tradeagreementsaccords
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69CallardC,CollishawN&SwenarchukM,2000.Anintroductiontointernationaltradeagreementsandtheirimpacton
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71WorldTradeOrganization,2001.EuropeanCommunities:MeasuresAffectingAsbestosandProductsContaining
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72WorldTradeOrganization/WorldHealthOrganization,2002.WTOAgreements&PublicHealth,Geneva,2002,see
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73TechnicalBarrierstoTradeagreement(TBT)
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74 SanitaryandPhytosanitaryMeasuresagreement(SPS)
75GeneralAgreementonTariffsandTrade(GATT)
76AgreementontheApplicationofSanitaryandPhytosanitaryMeasures.UruguayRoundAgreement,WTO,Geneva.(See
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77GATT,1947.GeneralAgreementofTariffsandTrade(GATT,1947),textesjuridiques,ArticleXXb.
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78Ibid.,ArticleXX
79NorthAmericanFreeTradeAgreement.www.naftasecalena.org/en/view.aspx?
80CallardC,CollishawN&SwenarchukM,2000.Anintroductiontointernationaltradeagreementsandtheirimpacton
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81LeministreduDveloppementconomique,del'Innovationetdel'ExportationduQubecqualifielesdispositionssur
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82NorthAmericanFreeTradeAgreement,Article1102. www.naftasecalena.org/en/view.aspx?
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84NAFTAFreeTradeCommission,2001.NotesofInterpretationofCertainChapter11Provisions,July2001.
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85NorthAmericanFreeTradeAgreement,Article1110
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