Tobacco Documents Online

1 A. CORTI - REPORT ON VISITS TO BRAZIL, ARGENTINA, VENEZUELA, MEXICO (November 22-December 7) In all four countries, of which two have a National Manufac- turers' Association, I met with senior management of all INFOTAB Member Companies as well as the leading people at the Associations. In Brazil, I was invited by the Bahia Chapter to give aipresen- tation on, smoking issues to leaf exporters and cigar manufac- turers. In response to their invitation to INFOTAB, I also: gave a presentation to the International Flule-cured Tobacco. Growers' Association who met in Santa Cruz do Sul. The general climate within the industry is one of awareness of the growing anti-smoking pressures, although stringent marketing constraints do not make it easy for the Companies too agree on commoniindustry action. However, within the existingi Associations, the Companies take a pragmatic approa~ch off agreeingito act on a case by case basis. High awareness of the need to have some form of NMA was expressed by both Companies, in Venezuela and especially strongly so by one Cbanpany in Mexico. During discussions, it was agreed in both countries that some sort of initiative should take pla~ce in the first half of 19'85, starting with a minimum of co-ordination on which the industry could then build. On the anti-smoking front, things are moving steadily. The Latin American Cb-ordiinating, Committee. on Smoking Control, set up in Panama in February at a UICC-sponsored anti-smoking meeting, seems to have gained ground on the Continent. In Argentina and Venezuela there are now Interministerial Committees on Smoking Control. The Argentine one has recently proposed a comprehensive anti-smoking,smoking bill. In Brazil, federal elections will take place on January 15. A committee for smoking control has just been set up by non-governmental health institutions. It is expected that this may well "'take advantage" of a relatively busy political time to foster anti-smokingi activities in government circles. The qiuietest

place at the moment seems to be Mexico although:, in July 1984',, ai Federal Health Law came into effect, which included smoking control provisions. Anti-smoking education programmes are increasingly being introduced in schools. Some areas of' advertising freedom are currently threatened inn ea~chof the countries visited~. Main points discussed during meetings were: - Climate towards smoking and common industry action; - Possible LatiniAmerican workshop; - Presentation to mirnisterial authorities (1"Target Tobacco"') ; - INFOTAB assistance. Brazil At the end of Noaember, the industry obtaiined~ a reduction of the IPI (tax on, industrialized products): fromi 63.82% to 57.93% of RSP. Despite an increase of the ICt•1 (state tax rate) from 9.76% ' to (7.89% manufacturers plus 1.87% retailers) to 13.71% (11.84% manufacturers plus 1.87% ' retailers) of the final selling price, the tax incidence on cigarettes fell from 75.96% to 74.012$. (A small tax decrease has appare mtly also been granted onilleaf exports. ). An economic impact study by an indlependent expert is due to be ~ published early 19'85. ~ ~ W As federal elections will take place on January 15, the ~ industry expects government to be busy withi more pressing issues than smoking. However, non-governmental health institu- tions have just set up a smoking control committee.. More anti-smoking action is expected at municipal level. An outdoor adVertising, ban in,Belo Horizonte is presently being challenged by the advertising industry on constitutional gxounds. Some 46 anti-smoking bills are pending.

3 As to ai Latin American workshop, the points agreed by Latin American delegates to the Brussels workshop were confirmed. ABIFUMO is going, to translate and adapt "Target Tobacco" a~s an educational tool for use with students. They also decided to distribute the Latin American newsletter to all 48 Members. The presentation to the Bahia chapter was well received'and the meeting was said to have contributed to tightening links between Bahialand Rio. At the International Flue-cured Tobacco Growers" Association in Santa Cruz, there were 1!9 delegates and' 11 observers from the six Member Countries. Interest was expressed' in some form of co-operation with manufacturers with a view to defending the industry's rights. Argentina We had meetings on various issues at the Camara and came to some conclusions. Main problems currently facing industry are, on the economic front, price controll on cigarettes and, on the smoking issues front, a comprehensive anti-smoking bill intro- duced this year by Congressman Maglietti. The industry members considler that the climate, as far a~s the general public is concerned, is rather quieter than a year ago. There is no director at the Camara but there is a person in charge of' "smoking and health". The company lawyers have jointly written a response to the t•Iag,lietti Bill (INFCTAB gave extensive help in gatheringirelevant material),. All details of ai Latin American worltshop were discussed and agreed!. Rservations were expressed by Philip Liorris who will make a decision, on whether or not to support such a meeting. The tentative dates were.fixed for April 9-11, 1i984.

The Camara requested written guidelines for a manuall filing system. Interest was also~ expressed in the possibility of transferring INFOTAB's computerized data base to a datalbase in. Argentina. The Camaaraiwill dub in Spanish the Ingo Walter tape on taxation in co-operation with INFOTAB.. Venezuela New developments onithe smoking issues front since last year: An interministerial committee on smoking control was formed and a bill has been introduced to ban outdoor advertising on certain freestanding posts in one Caracas zone. This is seen by the industry as a possible precedent for future action.. Both companies pledged to send a delegation to aiLatin American workshop. Both companies strongly recognize a need'i for some form of Association. It was suggested that a minimum common basis for action be agreed to start with; some material was sent to them in this respect. The delegates felt that the establishment of an NMA should be possible during the first half of 19'851. Mexico Threat of nationalization andi the multi-national issue are a~tt th!e forefront of companies' concerns. However, it is recog,- nized that some form of associationiiis needed and the companies are optimistic that this~ can be implemented during 19'85. Support material was sent from INFOTAB a~s well as to Venezuelai. Interest was also expressed in the training of a spokesperson and INFOTAB contacted the U.S. Tobacco Institute on this matter. It is likely that anti-smoking sections will be introduced in school textbooks by the Ministry of Education during the review which is presently taking place.

A Government Bill requesting warning: labels on "any kind of printed material"' related to cigarettes is being fought by the Chamber of'Industry and the advertising industry. The Leadl Company considered it useful to present "'Target Tobacco" to Tabamex (the nationalized growers" assocation), in the presence of the Minister of Agriculture. We are jointly working on adapting the presentation and getting an official recommendation fromithe country's delegate in Rome. Both companies expressed interest in a LatiniAmerican workshop. As I met with each company separately, they obviously will want to disouss.various items together before reaching,decisions.