Settlement Agreement Tobacco

by lobo October 7, 2021  

During the preparation of the MA, the OPMs and the Netherlands considered that many small tobacco companies would choose not to join the ASM. This failure of accession has posed a potential problem for both the OPMs and the countries of establishment. The OPMs were concerned that NPMs, both because they would not be bound by advertising and other restrictions in the MSA and because they would not be required to make payments to eligible states, would demand lower prices for their cigarettes, thereby increasing their market share. Next year, the big tobacco companies agreed with the tobacco-producing countries to compensate tobacco producers for the losses they are expected to suffer as a result of the rise in cigarette prices due to previous comparisons. This agreement, called “Phase II,” created the National Tobacco Growers` Settlement Trust Fund. The tobacco industry can only survive if it maintains its legal status and is able to market its products to young people who are not legally entitled to them and “involve” them in tobacco consumption throughout life. Since tobacco is a lucrative and heavily taxed product, governments that both regulate tobacco and demand tax revenues will always be ambivalent in their attitude towards tobacco and cessation. Regardless of the source, there is significant evidence that comprehensive tobacco control programs reduce smoking rates over a long period of time, and that the longer these programs work, the greater the positive effects.56 The CDC has provided technical assistance to states to assess the impact of their ASM-funded tobacco control efforts.57 In 1997, the Council adopted the report by Mr De M. The Committee on Industry and Policy of the Commission, taking into account the impact of stakeholders` activities and economic developments at the State level; MSA resources have been largely diverted from tobacco control and processing to other public policy activities.5 .


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