Global Tobacco Industry Interference Index2020

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Global Tobacco Industry Interference Index 2020 Acknowledgements Kenya: Consumer Information Network Korea (Republic of): National Cancer Center Author: Mary Assunta Lao PDR: Consultant - Maniphanh Vongphosy Lebanon: Hala Alaouie, Rima Nakkash, Editors: E. Ulysses Dorotheo, Yodhim Dela Rosa American University of Beirut Malaysia: Women’s Action for Tobacco Control and Health Additional editorial input: Vital Strategies Maldives: NCD Alliance and the Global Center for Good Governance in Mexico: Salud Justa México Tobacco Control Mozambique: Associação Moçambicana de Saúde Publica Global Tobacco Industry Interference Index (Global Myanmar: People’s Health Foundation Tobacco Index) is a global survey on how governments are Nepal: Health Rights & Tobacco Control Network responding to tobacco industry interference and protecting The Netherlands: Trimbos Institute their public health policies from commercial and vested New Zealand: Cancer Society of New Zealand interests as required under the World Health Organization Nigeria: Environmental Rights Action Framework Convention on Tobacco Control (WHO FCTC). Pakistan: Society for Alternative Media and Research The report was initiated as a regional index by Southeast Peru: National Anti-Smoking Control Commission (COLAT) Asia Tobacco Control Alliance (SEATCA) in 2014. The Global Philippines: HealthJustice Philippines Tobacco Index 2020 is produced, by Global Center for Good Romania: AER Pur Romania Governance in Tobacco Control (GGTC), a STOP partner, with Solomon Islands: Global Youth Leadership Nexus support from Bloomberg Philanthropies. Support from Thai South Africa: Consultant - Dhamaravelli Moodley, National Health Promotion Foundation and the Bill and Melinda Council for Anti Smoking Gates Foundation also contributed to the development of Spain: Catalan Inst of Oncology the report. GGTC is a joint initiative of the School of Global Sri Lanka: Alcohol & Drug Information Centre Studies at the Thammasat University and SEATCA. Sudan: Consultant and Ministry of Health Tanzania: Tanzania Tobacco Control Forum Thailand: Action on Smoking and Health Foundation Main country collaborators: Turkey: Turkish National Coalition on Tobacco or Health Argentina: Fundación Interamericana del Corazón Argentina Uganda: Consultant - Hellen Neima Bangladesh: PROGGA Knowledge for Progress Ukraine: Advocacy Center LIFE Brazil: Tobacco for Control Alliance United Kingdom: Tobacco Control Research Group, Brunei Darussalam: Ministry of Health University of Bath Cambodia: Cambodia Movement for Health United States of America: Action on Smoking & Health Canada: Action on Smoking & Health Uruguay: Tobacco Epidemic Research Center of Uruguay (CIET) Chile: Alianza ENT Chile Vietnam: HealthBridge Vietnam China: Consultant Zambia: Tobacco-Free Association of Zambia Colombia: Red Papaz Cost Rica: Red National Anti-Tobacco Network Design: sophieeverett.com.au Czech Republic: First Faculty of Medicine, Charles University, Prague Suggested Citation: Mary Assunta. Global Tobacco Industry Ecuador: Corporate Accountability Interference Index 2019. Global Center for Good Governance Egypt: Cairo Association Against Smoking, Tuberculosis in Tobacco Control (GGTC). Bangkok, Thailand. Nov 2020. and Lung Diseases Ethiopia: Health Development & Anti Malaria Association France: National Committee Against Smoking Disclaimer Georgia: Tobacco Control Alliance, Georgia This Index is based solely on publicly available Germany: Consultant – Laura Graen information obtained by researchers in their respective Ghana: Vision for Alternative Development countries. If you have information that can strengthen India: Institute of Public Health, Bangalore this report, contact us at: [email protected] Indonesia: Consultants – Widyastuti Soerojo, Mouhamad Bigwanto Iran (Islamic Republic): Tobacco Prevention For more information visit: & Control Research Center Israel: Smoke Free Israel www.exposetobacco.org Japan: Japan Society for Tobacco Control www.globaltobaccoindex.org Jordan: Framework Convention Alliance Kazakhstan: For a Smoke-Free Kazakhstan Contents 02 04 07 Introduction Key Findings 1. The tobacco industry interferes in policy development 11 12 15 2. The tobacco industry lures 3. The tobacco industry 4. Governments interact high level officials with its receives incentives unnecessarily with the siren song: so-called CSR tobacco industry 17 21 26 5. Lack of transparency 6. Public officials being employed 7. Governments can facilitates industry by the tobacco industry or vice create a firewall with interference versa creates conflicts of interest preventive measures 29 30 32 Conclusion Recommendations Summary table

40 42 Appendix A End notes Introduction

While the COVID-19 pandemic has the status of Article 5.3 implementation and providing a review of governments’ efforts. The Index made public health a top priority found that lack of transparency in interactions with across the globe, it has also put the tobacco industry, government endorsement of tobacco-related charity, industry targeting of non- a strain on health departments, health sectors to derail tobacco control measures and particularly in low- and middle-income conflict of interest issues persist as main problems countries, which are already burdened across the globe. In this mix, the tobacco industry has lobbied several governments to accept its new with a massive health bill from tobacco products despite their risks and unproven tobacco-related diseases and death. record as solutions to the tobacco pandemic. The first Index in 2019 reviewed 33 countries.4 The tobacco industry, which is responsible for more This second Index covers 57 countries from Africa, than 8 million deaths annually worldwide,1 has the Eastern Mediterranean region, Latin and North never taken responsibility for the diseases and America, Europe, South and Southeast Asia and the deaths its products have caused and continue to Western Pacific region. It ranks the countries using cause its customers, governments and society. Yet, it the same questionnaire and scoring method as the ASEAN Index, developed by the Southeast Asia is exploiting the 2020 COVID-19 pandemic to provide Mexico Tobacco Control Alliance (SEATCA).5 resources to countries badly in need of them, framing Canada 13 itself as being “part of the solution”—a classic tactic This Index is based on publicly available Sri Lanka 13 of the tobacco industry to get close to governments information on tobacco industry interference Thailand 12 11 and enable it to interfere with, derail and undermine in countries and their respective governments’ Nepal health policies aimed at reducing tobacco use. responses to this interference for the period of Ethiopia 11 January 2018 to December 2019 for the new country 10 Governments pinpointed tobacco industry Kenya The Netherlands 9 interference as the most serious barrier2 to tobacco participants, and January to December 2019 for the 33 countries updating their reports. The countries 8 control measures they are implementing under Peru are ranked (Figure 1) according to total scores 7 the World Health Organization (WHO) Framework Uruguay 6 Convention on Tobacco Control (FCTC), ratified by provided by civil society groups, which prepared their respective country indices. The lower the score, Iran 6 180 countries and the European Union. In calling New Zealand the lower the overall level of interference, which 5 out the tobacco industry as a vector of disease, United Kingdom 4 Article 5.3 of the WHO FCTC specifically empowers augurs well for the country. The Summary Table Uganda 3 governments to protect their public health policies (p. 32) provides disaggregated scores for each country. France 2 from vested commercial interests. Implementation Whether a country was high-, middle- or low-income Brunei Darussalam 1 guidelines to Article 5.3, adopted in 2008,3 provide had little effect on how well or poorly it fared. No recommendations governments can take to stop country has been spared from tobacco industry tobacco industry interference and protect their interference but what made the difference was officials when interacting with the industry. government action to address the interferences. This Global Tobacco Industry Interference Index (Index) is the second report in the series, presenting

02 STOP The lower the score,

the better the ranking 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-100

Figure 1: Tobacco industry interference

Indonesia

overall country ranking Romania

Colombia Zambia

Georgia Japan Jordan

Lebanon Tanzania

China Lao PDR Bangladesh Ecuador 34

33 Ukraine 32 31 31 31 31 31 Turkey 30 Argentina 29 29 0 28 USA 27 27 Chile KazakhstanMalaysia 26 Spain 25 Mozambique 25 Germany 24 23 10 23 Czech Republic 23 India 23 South Africa Egypt 22 22 22 20 Ghana 21 Philippines Korea (Republic of) Sudan 20 20 Vietnam 19 19 30 Myanmar 18 Solomon Islands Pakistan 18 17 16 40 Nigeria Costa Rica 15 Cambodia 15 15 Maldives 50 15 Israel 14 Brazil 14 Mexico 14 60 Canada 13 Sri Lanka 13 Thailand 12 70 11 Nepal Ethiopia 11 10 Kenya The Netherlands 9 80 8 Peru 7 Uruguay 6 90 Iran 6 New Zealand 5 United Kingdom 4 100 Uganda 3 France 2 Brunei Darussalam 1

Rank Score

Global Tobacco Industry Interference Index 2020 03 Key findings

→→ The tobacco industry stepped up corporate →→ The tobacco industry intensified lobbying:As social responsibility (CSR) activities during countries took action to address tobacco industry the COVID-19 pandemic: The tobacco industry interference, the industry also stepped up its exploited the pandemic to engage with lobby of governments. Between 2018 and 2019, governments to an extraordinary level, with 11 countries showed improvement, while 15 government receipt and endorsement of countries have scores that deteriorated, meaning charitable contributions (CSR activities) being there were more instances of interference. the industry’s key avenue to access senior officials, including several instances of the →→ The industry lobbied for acceptance/promotion industry involving the Prime Minister’s Office of alternative tobacco products: Philip Morris in several countries. The industry capitalized International (PMI) aggressively lobbied for on the vulnerability of governments who faced the promotion and sale of its heated tobacco a shortage of resources during the COVID-19 product (HTP), IQOS, in at least 12 countries pandemic. Even in countries where health which resulted in the government: 1) reversing departments/ministries have a policy to not a previous ban on HTPs; 2) allowing the sale accept donations from the tobacco industry, this of HTPs after PMI threatened to withdraw was put aside during the pandemic. operations; 3) granting a lower level of taxation for HTPs compared to cigarettes; 4) signing a →→ The tobacco industry attempted to steer policy memorandum of understanding (MOU) with PMI development: The tobacco industry sought to to conduct research on HTPs; and 5) allowing undermine the health ministry/department’s the tobacco industry a seat in the standards leadership role in tobacco control by shifting body deciding on HTPs. decision-making to the non-health sector to obtain industry-friendly outcomes. In several countries, stringent tobacco control measures were defeated or diluted where the industry had a seat at the policymaking table or exerted influence through non-health representatives to delay or oppose tobacco control.

04 STOP Even as more countries adopt comprehensive tobacco control, “the tobacco industry is working to undermine government efforts in order to hook new users and push new products. They have even gone so far as to try and take advantage of the COVID-19 pandemic, when countries are desperate for resources. However, the Index helps shine a light on such efforts and provides a path for governments to combat the tobacco industry.

Kelly Henning Director of Public Health Programs at Bloomberg Philanthropies ”

→→ Unnecessary interactions with the industry →→ Most governments failed to address conflict compromised the government’s role as of interest situations: Most governments have regulator: Unnecessary interaction between not instituted a cooling period between when high level government officials and tobacco government officials retire and when they companies resulted in these officials presenting can join or consult for the tobacco industry. trivial awards to tobacco companies for In four countries, state-owned tobacco entities “good deeds” thereby endorsing them in are not treated the same as the private tobacco the public eye. Partnership deals with the companies, and there was a revolving door tobacco industry were facilitated during these between officials and industry leaders moving interactions. The tobacco industry in at least from one sector to the other. six countries engaged with the Prime Minister’s Office which established a positive relation →→ Countries persist in viewing the tobacco with the top office which served to endorse the industry as economically crucial: Indonesia, industry in the public eye. Japan, Kazakhstan, Mozambique, Romania, Tanzania and Zambia left their tobacco control →→ Lack of transparency remains a problem: A lack policies vulnerable to being undermined of transparency persisted to facilitate deals with and defeated. They neglected to utilize tools the tobacco industry. In 2019, seven countries available to them, as provided in Article 5.3 made MOUs with the tobacco industry. These Guidelines, to firewall their tobacco control deals, made public only at signing ceremonies, efforts and have been vulnerable to high levels were on tackling illicit trade in tobacco. On the of industry interference. other hand, countries that have put procedures in place have guided officials to report all →→ Many countries failed to require the tobacco meetings with the tobacco industry. industry to report on important information: Most countries are not requiring the industry →→ Many countries continued to give incentives to provide information about its business, to the tobacco industry: Incentives received including what it spends on marketing, by the tobacco industry included tax caps and lobbying and philanthropy. This enables the tax exemptions, including the sale of duty-free industry to shift its budget into areas that cigarettes. These incentives have not been remain unregulated by the government. calculated to determine losses to the government.

Global Tobacco Industry Interference Index 2020 05 COVID-19 PANDEMIC EXPLOITED BY THE TOBACCO INDUSTRY

During the COVID-19 pandemic the tobacco banned the sale of tobacco products during the industry moved swiftly to step up its corporate pandemic as a measure to protect public health. social responsibility (CSR) activities such as While in the Philippines,13, 14 three municipalities, 15 making donations to higher-risk communities, banned the sale of cigarettes. Mexico prohibited 16 handing out personal protective equipment the sale of e-cigarettes, while the USA listed vape, smoking and cigar shops as non-essential (PPE) to the health sector and supplying businesses that must close. medical equipment to hospitals. The tobacco industry’s use of CSR activities as Philip Morris International (PMI) reported it a point of access and influence is addressed in donated over US $32 million across 62 markets greater detail in Section II. in the first few months of the pandemic.6 In the countries surveyed, PMI’s CSR activities included distribution of ventilators to Czech Republic, hand sanitizers to Brazil, Indonesia, the Netherlands and the Philippines. In India, Indian Tobacco Company Limited (ITC) partnered with the Government of Kerala, through its brand, Savlon, on a state- The tobacco industry wide handwashing campaign “Break the Chain.”7 Appendix A provides a sample of tobacco industry- “has a well-documented related CSR activities conducted during the first history of deception few months of the pandemic. and of capitalizing on While publicizing its charitable acts to resuscitate its image as being part of the solution, the industry was humanitarian crises, and simultaneously lobbying governments not to impose restrictions on its business and even to declare it is using the pandemic tobacco as an “essential” item during the pandemic. to attempt to improve In Kenya, the government listed tobacco products as its deteriorating public “essential products” under the foods and beverages category during the COVID-19 pandemic8 which image. But even during meant logistics providers of those sectors were times of great need, given protection and special permits to transport during the lockdown. In Jordan, three days into we must remember the the complete lockdown, the government instructed irreconcilable conflict city buses to deliver bread and other essentials directly to neighborhoods, and the Minister of between the interests of Labor announced the government would initiate distribution of cigarettes to smokers as well.9 the tobacco industry and Jordan documented a more-than 50% increase in those of public health. consumption of tobacco during the lockdown.10

In contrast, several governments took action to Dr. Adriana Blanco Marquizo protect public health. India11 and South Africa12 Head, WHO FCTC Convention Secretariat”

06 STOP 1. The tobacco industry interferes in policy development

Governments are obligated to Counterfeiting and the National Forum Against Piracy and Illegality) stated that this policy had protect their health policies resulted in more smuggled products. They used from tobacco industry interference. their own data instead of using official figures.17, 18 In March 2019, the Minister of Justice set up a The Netherlands, Thailand, working group to assess the convenience and Brunei Darussalam, Kenya, opportunity of reducing taxation of cigarettes Nepal and Uruguay have done manufactured locally in view of illegal cigarettes resulting in low tax revenues and losses to that effectively (Figure 2). public health.19, 20

In Colombia, PMI lobbied the Ministry of Finance These countries do not permit the tobacco industry to defeat the tax increase. The Constitutional Court a seat at the policy development table, reject ruled the tax reform adopted through Law 1943 of industry proposals or drafts and do not allow the 2018 was unconstitutional because of procedural industry to water down or delay tobacco control defects. The Ministry of Finance then submitted measures. On the other hand, Japan, China and to Congress a new tax reform bill almost identical Lao PDR, which have state-owned enterprises, to the one submitted a year before. Although continue to allow the tobacco industry to have a say there were several attempts from congressmen to when they develop their tobacco control measures. increase taxes on tobacco products, the government was reluctant to introduce such amendments to the In 2019, strong interference from the tobacco original bill. Consequently, there were no advances industry saw tax measures undermined or defeated on this front. Tobacco industry lobbying was active in several countries, including Brazil, Colombia, during the legislative process of law between 2010 Kazakhstan and Ukraine. and 2019.21 Brazil had a minimum price policy for tobacco In Kazakhstan, an Entrepreneurial Code ensures products and increased taxes between 2011 and participation of private entities in rule-making, 2015. However, the tobacco industry and its allies providing an opportunity for the tobacco industry (the Institute of Economic and Social Development to influence policy decisions on tobacco control of Borders, the Brazilian Association to Combat

Global Tobacco Industry Interference Index 2020 07 measures.22 The Ministry of Economy and Ministry The tobacco industry used various strategies to of Finance, for example, must discuss excise tobacco influence governments across departments, hold policy with the tobacco industry and the Atameken multiple meetings with officials and politicians, (National Chamber of Entrepreneurs of the Republic promoting the benefits of the product. This stresses of Kazakhstan) members. Kazakhstan applied a the need for policy coherence in protecting public 25% annual tobacco tax increase approved by health. Prior to the introduction of IQOS into the the tobacco industry and the Atameken, a low Israeli market, there were indications of meetings level compared to other European countries.23 The between senior MOH officials and representatives of Ministry of Health’s opinion on major tobacco excise PMI,29 leading to correspondence between the MOH increase is usually ignored. and the Israel Tax Authority, which stated that the Advertising and Marketing Restricting of Tobacco In Israel, during the Knesset Economics Affairs products Law - 1983 does not apply to HTPs.30 Committee hearings on the draft bill on Restriction However, the new law passed in 2018 covers all of Advertising and Marketing of Tobacco Products tobacco products including HTPs.31 Law (Amendment No. 7), 5779-2019, the chairman of the Committee and other Knesset members asked In Romania, in July 2018, the Minister of Health, representatives of the Ministry of Health (MOH) to a Romanian MP in the European Parliament and meet with representatives of the tobacco companies the leaders of the two health committees in the and hear their arguments.24 The MOH granted the Parliament attended a PMI-sponsored event focused request and held one meeting with representatives on the benefits of HTPs. This continued in 2019 of tobacco and smoking product companies, where through a series of formal and informal meetings the Cigar Importers Forum requested that cigars be with the tobacco industry.32 exempt from plain packaging requirements. In the Knesset Economic Affairs Committee’s discussions In Colombia, following PMI’s announcement of of the advertising bill,25 it was decided that its intention to withdraw tobacco production 33 cigars would be excluded from plain packing and operations from the country, the Commerce emissions reporting requirements.26 Minister said in June 2019 the government was identifying mechanisms that may allow PMI to In several countries the tobacco industry continue its operations in the country. One of successfully influenced departments under the these mechanisms was the production of HTPs Ministry of Finance, such as the National Bureau in Colombia. The governor of Santander also held of Revenue in Bangladesh and the Customs meetings with PMI about its threat to withdraw its Department in Colombia, to oppose tax increase. In operations and to ascertain what could be done.34 Germany, the Ministry of Finance was lobbied to The tobacco companies also tried to influence MozambiquePeru defeat a tax increase. 4 the WHO FCTC Conference of the Parties (COP) 4 Having a relationship with the Prime Minister’s on its position on HTPs and ENDS through the Mexico Myanmar 4 Office has helped the industry inEcuador obtain Colombian Department of Foreign Affairs. Prior to 4 low tax rates for e-cigarettes and HTPs27 and gain the eighth session of the COP in 2018, an industry Iran 4 protection for the industry which has resulted in document was leaked to the public, revealing that France Cambodia 4 the delay of tobacco control legislation for several the top three transnational tobacco companies United Kingdom 4 28 years in Tanzania. In Zambia, tobacco industry requested the Colombian Minister of Foreign Affairs 3 interference has delayed tobacco control legislation to adopt the following positions during the COP Sudan The Netherlands 3 since 2009. The Tobacco and Nicotine Products negotiations:35 Korea (Republic of) 3 Control bill drafted in 2018 has not been tabled a. Insist that HTPs and ENDS are reduced- 3 in Parliament yet and it is subject to business Uruguay 2 regulatory review. risk products. Nepal 2 Kenya When the regulated industry is a member of a b. Oppose policies regarding nicotine reduction. 2 Brunei Darussalam regulatory committee, the committee is unable These increase smuggling as consumers 1 to develop stringent regulations. In Nigeria and will prefer cigarettes with higher amounts Thailand 1 Vietnam, the tobacco industry sits in the standards of nicotine. organization that determines the standards of c. According to the industry, Article 5.3 of the tobacco products. In Jordan, the industry is a FCTC violates the sovereignty of the States. member of the inspection committee that inspects Industry should be involved in the policy- tourist destinations and in Spain the industry is making process. represented in the consultation committee in the Ministry of Finance.

08 STOP The lower the score,

the better the ranking 0-2 3-4 5-6 7-8 9-10 11-12 13-14 15-16 17-18 19-20

Figure 2: Tobacco industry interferes

in policy development Philippines Indonesia

Turkey Japan Jordan Colombia China Georgia Tanzania

USA

Zambia

Israel 19

18 Ukraine 16 16 Vietnam 16 15 Romania 15 15 Lao PDR 15 14 14 0 Nigeria Malaysia 13 13 Lebanon 12 12 Ecuador 12 11 South Africa 10 Egypt 10 2 Brazil 10 Pakistan Kazakhstan 9 9 Czech Republic 8 EthiopiaIndia 8 8 4

Sri Lanka 7 7 New Zealand 7 Spain 6 6 Ghana 6 6 Bangladesh Chile 6 Maldives 6 8 Germany 6 Costa Rica 5 5 Canada 5 Argentina 10 5 Solomon IslandsUganda 5 4

4 12 MozambiquePeru 4 Mexico 4 Myanmar 4 14 4 Iran 4 France Cambodia 4 United Kingdom 4 16 3 Sudan The Netherlands 3 Korea (Republic of) 3 18 3 Uruguay 2 Nepal 2 20 Kenya 2 Brunei Darussalam 1 Thailand 1

Score

Global Tobacco Industry Interference Index 2020 0709 With the support of its public health community, pressure by chief ministers, trade representatives India banned the import, production and sale of ENDS,37 vaping groups and scientists at both the of ENDS36 in 2019 and came under tremendous national and international level to rescind the ban.

Table 1: Policy influence to promote ENDS/HTPs

Electronic nicotine delivery systems (ENDS, or e-cigarettes) were banned in 2009, and the tobacco industry attempted to reverse the ban. In 2019, there were 19 meetings recorded between tobacco 1. Brazil companies and Agencia Nacional de Vigilancia Sanitaria (ANVISA). The ban remains in place.38

In 2019, the Minister of Commerce allowed PMI to produce HTPs after it threatened to withdraw 2. Colombia from Colombia.39

3. Egypt PMI negotiated with the government to allow sales of IQOS.40

PMI obtained permission to have special shops to sell IQOS, with 4. Georgia no ban on promotions.41

5. Germany IQOS enjoys lower tax, and pictorial warnings are not required on it.42

6. Indonesia PMI/PT HM Sampoerna signed an MOU with the government to conduct research on HTPs.43

7. Japan HTPs are taxed lower than cigarettes.44

PMI sued the government, demanding disclosure of information that concluded HTPs contain 8. S. Korea harmful substances.45

The President of the Junta de Extremadura signed an agreement with PMI to conduct research and 9. Spain development of innovative products with low potential risk.46

10. Ukraine IQOS will be taxed 3.5 times lower than cigarettes till 2021.47

PMI met with the Vietnam Directorate for Standards, Metrology and Quality and to discuss the benefits of 11. Vietnam using HTPs and to develop standards and technologies for these tobacco products.48

THE TOBACCO INDUSTRY INFLUENCED GOVERNMENTS

TO ALLOW/PROMOTE HTPs AND ENDS

In 2019, PMI reported it was selling its flagship HTP, IQOS, in 47 markets and duty-free sales outlets.49

However, what was not revealed is the influence exerted and the numerous benefits PMI obtained to manufacture and sell IQOS in these markets. Table 1 shows how governments across the globe came under pressure to allow production or sale or give benefits to HTPs and ENDS.

10 STOP 2. The tobacco industry lures high level officials with its siren song: So-called corporate social responsibility

The tobacco industry’s exploitation of the PMO for a farmers project.51 In Sudan, the former President and the Minister of Industry the pandemic with its CSR activities to were involved in a tobacco industry-sponsored access the health sector demonstrates scholarship program for university students, while in Malaysia and Tanzania, the PMO was involved in these activities are a point of influence handing out school bags to grade-school students52 for the industry. In 2019, the tobacco and supplying trolley push carts to street vendors,53 industry continued to gain access to respectively, both sponsored by tobacco companies. high level officials through its CSR In Bangladesh, BAT collaborated with the Labour Welfare Foundation for a project on labor,54 while activities, focusing on the education in Cost Rica, PMI worked through the American sector, cultural events, women’s Chamber of Commerce to engage with the Vice Minister of Labor on its gender equality initiative.55 groups and farming communities. In India, the ITC made a financial contribution of Officials and departments who US $1.25 million to the Maharashtra Government 56 receive or endorse these sponsored for flood relief activities. The check was presented during the swearing-in ceremony of the Chief charities inevitably become champion Minister of the state. ITC also has a forestry spokespersons for the industry. initiative in the Malkangiri district in the state. In China, the state-owned tobacco enterprise, State In several countries, tobacco companies distributed Tobacco Monopoly Administration, conducted a their CSR initiatives directly through the Prime range of CSR activities such as poverty alleviation Minister’s Office (PMO). InPakistan for example, identified by the central government57 and British American Tobacco (BAT) donated US disaster management, while the Dayu Tobacco $35,450 to the Prime Minister for a dam fund50 Company (Jiangxi Province) conducted a “civilized just one month before the government budget smoking” campaign.58 announcement. In Colombia, PMI engaged with

Global Tobacco Industry Interference Index 2020 11 3. The tobacco industry receives incentives

The tobacco industry received a lower rate of 14.9%.66 In Germany, the government has also not required taxes on ENDS or e-liquids as range of incentives that benefitted its it does on tobacco.67 business. Tax exemptions, no increase In a few countries, certain tobacco products get in tobacco tax and lower levels of an exemption or discount for value-added tax taxation on certain tobacco products (VAT) applied to all consumer goods. In Costa Rica, tobacco is excluded from VAT,68 Zambia excluded were among the common benefits VAT on green leaf tobacco in 2018,69 while in India given to the tobacco industry. small manufacturers of bidis are excluded from the goods and services tax (GST).70 In Bangladesh, the National Board of Revenue (NBR) amended the In 2019, there was no tax increase on tobacco in VAT and Supplementary Duty Act 2012 and offered 59 60 61 Ethiopia, Indonesia and Tanzania, while a tax tax credits to tobacco companies from the budget 62 restructuring in Argentina led to a decrease in FY 2018-19.71 The NBR reduced the supplementary taxes paid by the tobacco industry. In Germany, duty on non-filter bidis from 35% to 30% by issuing the government gave the industry a tax exemption a Statutory Regulatory Order to accommodate the for tobacco products that manufacturers offer their demands raised by the bidi industry.72 employees as a deposit without remuneration, which amounted to €6 million in 2018 and €5 To encourage more tobacco exports, Mozambique million in 2019.63 does not require export duties. Bangladesh withdrew the 10% export duty on unmanufactured tobacco 64 65 In France, Germany and Japan, HTPs enjoy in the 2018-19 budget,73 while in Cambodia, tobacco a lower level of taxation than cigarettes on the producers who export more than 3,000 kg of tobacco supposition of lower tax for less harmful products. to Vietnam receive a waiver on export duty.74 Japan Tobacco’s popular cigarette brand is taxed at 63%, while its HTPs are taxed at a significantly

12 STOP International travelers “continue to be able to purchase duty-free cigarettes, which benefits the tobacco industry through increased sales while depriving the government of tax revenues. ”

Legislation delayed Duty-free cigarette or applied unequally concessions

To protect its business, the tobacco industry International travelers continue to be able to acts to defeat or delay legislation, or worse, tries purchase duty-free cigarettes, which benefits the to reverse existing bans and regulations. Some tobacco industry through increased sales while governments succumb to interference from the depriving the government of tax revenues. Only industry. In Colombia, proposed legislation to a few countries, such as Brunei and Sri Lanka, increase the pictorial health warning (PHW) size have removed duty-free status of cigarettes. While on tobacco packs was defeated,75 while in Ghana most countries in the survey allow international a declaration in June 2018 to ban e-cigarettes travelers to bring in no more than 200 sticks duty- and shisha has yet to take effect.76 Lebanon had free, China, Costa Rica, Ecuador and Japan allow a banned e-cigarettes and e-waterpipes in 201377 but generous 400 sticks. has reversed the ban and now allows e-cigarettes, e-waterpipes and IQOS78 to be sold.

In Malaysia, HTPs are defined as tobacco products, yet are sold without PHW as required by law.79 In Bangladesh, the implementation of PHW on cigarette packs has been delayed since the High Court postponed the government order dated July 4, 2017, following a review petition by the Bangladesh Cigarette Manufacturers’ Association. To date, PHW on cigarette packs remain unimplemented.80

Global Tobacco Industry Interference Index 2020 13 The lower the score, the better the ranking 0-2 3-4 5-6 7-8 9-10 11-12 13-14 15-16 17-18 19-20

Figure 3: Governments engage in unnecessary

Indonesia

Argentina Colombia interaction with the Lao PDR

Jordan Romania Ukraine Lebanon

Ecuador Philippines

tobacco industry China

Spain 15

15 15

15 15 Zambia 13 Vietnam Brazil 13 12 12 12 0 Japan 11 11 Mexico 11 10 Georgia 10 India 10

Egypt The Netherlands Nigeria 9 Bangladesh 9 Canada 9 2 Mozambique 9 8 8 Solomon IslandsGermany 8 7 4 Chile 7 Kazakhstan 7 7 Ethiopia Costa Rica 6 6 6 Turkey 6 Tanzania 6 South Africa 5

Pakistan 5 Korea (Republic of) 5 8 Malaysia 5 5 Czech Republic Kenya 5 10 5 Thailand 5 Sudan 4

Peru 4 12 4 USA Uganda 3 Sri Lanka 3 14 3 Nepal Myanmar 3 3 Ghana 3 16 France 3 Cambodia 3 Iran 2 18 Maldives 2 United Kingdom 1 Uruguay 0 20 New Zealand 0 Israel 0 Brunei Darussalam 0

Score

14 STOP 4. Governments interact unnecessarily with the tobacco industry

The tobacco industry intentionally award facilitated public officials visiting the factory and interacting with JTI executives, which was interacts with government officials promoted in the press81 and social media.82 to strengthen their relationship. In Kenya, the Deputy President graced the Having these strong relationships gala dinner for the winners of the 2019 Kenya paves the way for partnerships Exporter of the Year Awards where BAT Kenya was awarded the “Solid Rock Commendation” or collaboration. (Lifetime Achievement) award.83 Alongside the Deputy President, the Cabinet Secretary of the Figure 3 shows how countries fared in unnecessary Ministry of Industry, Trade and Cooperatives, and interactions with the tobacco industry. Jordan, the Export Promotion Council (EPC) Chief Executive Indonesia, Colombia, Argentina and India have high Officer were in attendance with other government 84 levels of unnecessary interactions, while Brunei, officials. The Kenya “Exporter of the Year Award” is Israel, New Zealand and Uruguay have done well to a project of Kenya EPC, a state agency. curb this problem. The Colombian President and officials from various Tobacco companies have found a persuasive way to government departments participated in roundtable engage with senior public officials—when officials discussions at the PMI-sponsored Concordia Summit 85 86 give them awards for achievements that sometimes in 2018 and 2019, which centered around look tailormade for the tobacco industry. In 2019, encouraging innovation in Latin America to further several countries recorded trivial awards given to the concept of harm reduction. The discussion tobacco companies where government departments promoted a number of regulatory measures that the and/or senior officials were present in these award Colombian government could put in place to shift ceremonies (Table 2). smokers to supposedly less harmful products. In 2019, the Colombian Chief Prosecutor handed out The Jordanian Ministry of Environment awarded prizes to the winners of an art contest sponsored by JTI the “Environmental Stewardship Award” for the BAT and the Ministry of Culture.87 usage of solar steam generation in its factory. This

Global Tobacco Industry Interference Index 2020 15 Table 2: Governments provide awards and certificates to tobacco companies

“Most tax friendly corporation” award Tax Indonesia Minister of Finance to PT HM Sampoerna/PMI88

PT HM Sampoerna/PMI appreciated for its CSR Indonesia Minister of Industry activities on Small & Medium-Scale Enterprise89 CSR KT&G given the Certificate of “Excellent Director, Ministry of Culture, Korea organization for Culture and Arts”90 Sports and Tourism

JTI given the “Environmental Jordan Ministry of Environment Stewardship Award”91 Environment BAT Kenya awarded as Best Company Chief Administrative Secretary, Kenya in Electricity Savings, Water Savings92 Ministry of Petroleum and Mining

Kenya Deputy President and Chief Kenya BAT received “Exporter of the Year” award93 Secretary of Ministry of Industry present at the award ceremony Trade

“Export champion” award given to PMI, Turkey President of Turkey BAT and JTI

Occupation and Safety award given to Minister of State in the Prime Health/safety Tanzania Tanzania Cigarette Public Limited Company94 Minister’s Office

Ecuador’s Vice President, First Lady and ministers In Zambia, the Finance Minister officiated the participated in a Women Entrepreneurs Forum - opening of a new US $25 million BAT manufacturing Leadership and Transformation event sponsored plant intended to increase cigarette production.99 by Industrias del Tabaco, Alimentos y Bebidas S.A. (ITABSA, PMI affiliate in Ecuador) in September 2019.95 The tobacco industry in India received a boost from the government in June 2019 when the In Argentina, the annual “Night of Conscience” Chair of the Indian Tobacco Board, Department of (Asociación Conciencia) in 2017 and 2018 was Commerce, led a delegation of six major tobacco hosted by an organization financed by PMI,96, exporters (representing more than 70% of Indian 97 which brought senior ministers into contact tobacco exports) to promote tobacco to China.100 The with the tobacco industry. delegation met with the Chief Commissioner of the Chinese State Tobacco Monopoly Administration In Mexico, prompted by a request from the governor (STMA). Earlier, in January 2019, a senior bureaucrat of a tobacco-growing state, who had attended a BAT from the Indian Ministry of Commerce paved the event and encouraged further BAT investments, the way by meeting with the tobacco industry in China president of the Upper House’s Health Committee to revive an old protocol on the export of Indian attended an event organized by BAT and spoke up tobacco leaves to China for the next five years, for the industry, stating higher taxes on cigarettes removing a major technical barrier in exporting to hadn’t created any health improvements among China. In the absence of a national code in 2019 to Mexicans, and had instead hurt the tobacco sector guide public officials in their interactions with the 98 and caused job losses. He committed to working tobacco industry, a statement of the Press Information on necessary legal reforms and lobbying the Bureau101 promoted the visit in a positive light, government to ensure that legislative changes do stating the Embassy of India in Beijing had worked not harm tobacco companies. closely with the Chinese authorities, including the STMA, the Ministry of Commerce and other relevant organizations, to promote Indian tobacco.

16 STOP 5. Lack of transparency facilitates industry interference

Article 5.3 Guidelines recommend annual report to the health minister of expenses related to activities of influence or representation governments ensure transparency of interests of manufacturers, importers and by requiring periodic disclosures distributors of tobacco products.102 from the tobacco industry about Ethiopia has a procedure in place for all its activities and practices. When interactions between public officials and the tobacco industry, which are limited to only those procedures to obtain such information strictly necessary for effective regulation of the are in place, the information can tobacco industry or tobacco products. To ensure transparency, all interactions are documented.103 guide officials in preventing tobacco industry interference. In Peru, the government publicly disclosed a meeting with the tobacco industry on the regulation of IQOS. In February 2019, France, Canada, Ethiopia and Peru have fared well representatives of Philip Morris formally requested in facilitating transparency when interacting with an appointment with the Ministry of Health the tobacco industry (Figure 4). Thirteen countries (MINSA) which was attended by representatives of fared poorly. MINSA (Deputy Minister and several officials) and civil society representatives. At that meeting Philip France, at the executive level, requires its ministers Morris proposed the formal entry of HTPs (IQOS) as to report weekly on all meetings, including reduced-risk products. those with the tobacco industry. There are also specific rules concerning the transparency of lobbying activities of the tobacco industry and its representatives, which require submitting an

Global Tobacco Industry Interference Index 2020 17 The lower the score, the better the ranking 1 2 3 4 5 6 7 8 9 10

Figure 4: Lack

Korea (Republic of) of transparency

Kazakhstan Sri Lanka Romania

Maldives

Lebanon Turkey Indonesia Czech Republic

Georgia Ghana India 10

10 10

Egypt 10 Mozambique 10 10 10 Myanmar Zambia 10 10 10 Colombia 10 0 10 Solomon Islands 10 Ukraine Tanzania 9 9 9 Sudan 9 Pakistan 8 8 1 8 MalaysiaNepal 8 Lao PDR 8 8 Jordan 8 GermanyJapan 8 2 Costa Rica 8 8 Bangladesh China 8 8 3 Thailand 8 The NetherlandsSouth Africa 8 7 7 Israel 7 4 Ecuador Cambodia 7 7 Vietnam 7 Uruguay 5 6 Uganda 6 Brunei Darussalam 6 Iran 6 6 6 Brazil Argentina 6 6 USA 7 5 Spain Nigeria 5 New Zealand 5 5 8 Mexico 5 Chile United Kingdom 5 4 9 Peru 4 Ethiopia 4 Canada 4 10 Philippines 3 France 3 Kenya 2

Score

18 STOP Tobacco companies address illicit trade in tobacco products (Table 3). Most of these countries are non-Parties collaborated with to the FCTC Protocol to Eliminate Illicit Trade in governments through MOUs Tobacco Products.104 Often, the negotiations of these MOUs were conducted in a non-transparent manner, Non-transparent government meetings with the and the deals were only made public during signing tobacco industry facilitate unnecessary collaboration ceremonies. The Colombian National Federation and deals with the industry. Several governments of Departments (FND), for example, had regularly signed new memorandums of understanding MOUs invited members of BAT and Coltabaco to participate with the tobacco industry in 2019, mostly with in their anti-illegal trade meetings with other customs departments and enforcement agencies to government agencies.105

Table 3: Governments in collaboration with the tobacco industry to address illicit trade

Memorandum of understanding Protocol to Eliminate Illicit (MOU)/Technical assistance Trade in Tobacco Products

National Police and the National Federation of Departments Colombia (FND) entered into an Anti-Illicit Trade Agreement with Signed in 2013, not a Party PMI to provide training to enforcement officers106

National Service of Customs inter-agency cooperation Ecuador agreement with ITABSA/PMI; agreement terminated within a Party since 2015 few months through intervention of Ministry of Public Health107

Egypt (state Egyptian Customs Authority MOU with JTI Not a Party enterprise)

Customs Commission, Ministry of Revenue MOU Ethiopia Not a Party with JTI/National Tobacco Enterprise108

The Dutch Customs Department MOU with JTI109 Signed in 2014, not a Party Netherlands

State Fiscal Service MOU with Ukrtiutiun,110 Ukraine Not a Party (Ukrainian Association of Tobacco Producers)

Global Tobacco Industry Interference Index 2020 19 In 2018, the Ukrainian State Fiscal Service In Spain, the Director General of the Civil Guard signed an MOU with Ukrtiutiun,111 the Ukrainian (Police Force) in charge of combating illicit trade Association of Tobacco Producers (PMI, BAT, JTI and tobacco companies (Philip Morris Spain, JTI, and Imperial Tobacco), accepting equipment BAT) signed an agreement in 2018 to fight tobacco and other support from the industry to tackle smuggling.117 Through this agreement, Philip Morris illegal trade of tobacco products. This interaction gave the Civil Guard aquatic cameras, night vision deteriorated further in 2019 with the Cabinet of systems, vans with scanners and mobile devices for Ministers approving another MOU with these tracking tobacco products. The collaboration between tobacco companies on transparent and predictable the government and the tobacco industry against regulation for the development of the tobacco illicit trade also extends to other tobacco companies. industry.112 This was undertaken in a closed- door meeting between the government and the In another instance, the Spanish regional 118 industry and can be used by the industry to government of Extremadura has a 2016 agreement protect its business. with Philip Morris that is still in force and targeted to make tobacco growing sustainable, enable Philip In September 2019, the Romanian Minister of Morris to promote innovative tobacco products and Finance participated in the launch of an anti-illicit give HTPs more visibility.119 trade campaign sponsored by JTI.113 Photos of the launch were promoted on the landing page of the There are several countries that have good Finance Ministry’s official website. transparency measures in place. Ministries of Health of several countries, such as Brazil, Canada, In Africa, the Mozambican Ministry of Labour New Zealand and the Netherlands inform the Employment and Social Security signed a three- public whenever they hold any meetings with the year MOU to receive US $1.2 million in grants from tobacco industry. the tobacco industry-funded Elimination of Child Labour in Tobacco Growing Foundation (ECLT) to address child labor in tobacco-growing rural areas.114 ECLT is an international NGO that is fully funded by tobacco companies (BAT, PMI, JTI, Imperial Tobacco and others). The tobacco industry In Asia, the Indonesian Ministry of Research, Technology and Higher Education signed an MOU “secures direct MOUs with PMI’s local subsidiary, PT HM Sampoerna Tbk, with governments, to conduct research on HTPs,115 while the Chinese state-owned tobacco enterprise has several MOUs, which elevates it as a including between the Ministry of Agriculture collaborative partner, and Provincial Tobacco Bureau to address poverty alleviation in Xiangxi, Hunan province,116 and rather than be regulated between the Provincial Public Security Department and Fujian Provincial Tobacco Bureau to combat through legislation. economic crimes. ”

20 STOP 6. Public officials being employed by the tobacco industry or vice versa creates conflicts of interest

Article 5.3 Guidelines recommend declare its political contributions. Some countries make this information public. Several countries avoiding conflicts of interest such as Iran, Uruguay and Myanmar ban such for government officials and contributions. Several countries that allow them require disclosure, such as Canada, New Zealand, employees, and instituting rules France, U.K. and USA (Figure 5). to protect public health policies from interference by the tobacco Health policies are not industry. Reality, however, shows protected from state owned there is a revolving door of former tobacco enterprises because public officials joining the tobacco they are treated as another industry and vice versa. government entity

Article 5.3 recommends that Parties treat a state- In some instances, an individual can have a owned tobacco enterprise in the same way as any foot in both the government and the industry other tobacco company, but the survey found these simultaneously. Table 4 shows examples from select state-owned enterprises are treated as government countries of movement of individuals from one entities, while simultaneously enjoying the benefits sector to the other. given to private tobacco corporations. None of these enterprises provide full information about their Parties should not accept political donations from business, such as their expenditure on marketing, the tobacco industry as they constitute a conflict of advertising or philanthropic activities, and are able interest. Where such donations are allowed by law, to influence tobacco control policy (Table 5). countries should require the tobacco industry to

Global Tobacco Industry Interference Index 2020 21 The lower the score, the better the ranking 0-2 3-4 5-6 7-8 9-10 11-12 13-14 15-16 17-18 19-20

Figure 5: Conflict of interest

Bangladesh

Philippines problem persists Thailand Japan Indonesia Lao PDR Jordan

Chile

Spain

Maldives Mexico Lebanon

USA 15

14 13

12 12 12 11 Romania 11 India 11 10 Pakistan 10 0 Malaysia 10 10 Georgia Colombia 10

United Kingdom 9 Cambodia 9 China Argentina 9 9 9 2 Germany 9 The Netherlands 9 Tanzania Korea (Republic of) 9 Sri Lanka 8 8 7 4 Czech Republic 7 Ghana 7 7 Zambia 7 6 Vietnam 7 Ukraine 6 Myanmar 6 6 Kenya 6 8 Israel 6 Ecuador 6 Turkey 6 10 South AfricaSudan 5 5 Nigeria New Zealand 5 5 12 Nepal 5 Mozambique 5 Kazakhstan 5 14 Ethiopia 5 5 Egypt 5 Uruguay 4 16 Iran 4 France 4 Canada 4 18 Brazil 4 Solomon Islands 3 Uganda 2 20 Brunei Darussalam 1 Peru 0 Costa Rica 0

Score

22 STOP Table 4: Revolving door between former officials and industry executives

Government Industry

National Ministry of Health Official since Argentina BAT Executive (2009-2016)120 2018

Cambodia Senator121 L.Y.P. Group President

China Member of Standing Committee Chief Commissioner of STMA122

Former Advisor to Central Bank of Colombia123 Vice President of Coltabaco/PMI124 Colombia Former Director of Intelligence Agency, Vice-President of BAT125 former Director of Anti-Narcotics Agency

Member of the National Tourism Advisory Director on the Board of ITC, Travel India Council; Executive Committee Member of and Tourism Businesses of ITC126 National Culture Fund, Ministry of Culture

Sec-Gen, Indonesian Cigarette Indonesia Director, Ministry of Industry Manufacturers Association (GAPPRI)127

General Manager of Department of Head, Iranian Tobacco Company Iran Commerce, Ministry of Industry (ITC).

Administrative Vice Minister, Ministry of Japan Chairman, Japan Tobacco128 Finance

DG Social Sector, Prime Minister’s Independent Director, Pakistan Pakistan Secretariat; DG Customs; Director at Tobacco Company (BAT)129 National Assembly

Former Prime Minister (1996-2004); PMI Consultant for Spain President (2004-2016) Spain Latin America130

Director and Board member, Turkey Deputy Minister of Trade131 BAT Turkey January 2019

Global Tobacco Industry Interference Index 2020 23 Table 5: State-owned tobacco enterprises’ influence on tobacco control

Intervening in policy/ The Tobacco Monopoly Law provides legal basis for the China conflict of interest tobacco industry to intervene in tobacco control policy.

Eastern Tobacco Company contributes to government Egypt CSR institutions and development projects. It donated US $186,000 to restore the National Cancer Institute.132

Intervening in policy/ National Tobacco Enterprise is allowed to comment Ethiopia conflict of interest on tobacco control law before it is passed.

Center for Tobacco Planning and Supervision issued Iran Conflict of interest new licenses to increase local production of cigarettes.133

The Ministry of Finance owns 31% of Japan Tobacco Inc. The Intervening in policy/ Japan Tobacco Business Act protects the tobacco business and has conflict of interest jurisdiction over regulation of tobacco advertising.134

State-owned tobacco monopoly, Regie, signed an agreement with BAT to produce cigarettes locally. BAT stated: “At the Conflict of interest/benefit Lebanon level of governments, we are working with them to develop to the tobacco industry a legislative framework that protects consumers and economy alike.”135

Vietnam National Tobacco Corporation (Vinataba) controls 60.5% of Vietnam’s cigarette market. It has proposed several Conflict of interest/benefit policy measures, including to use the VN Tobacco Control Vietnam to the tobacco industry Fund to prevent illicit tobacco, postpone amendment of tobacco excise tax law, and not increase excise tax rates for cigarettes.136

Israel Pakistan 14 New Zealand 13 Maldives 13 13 Jordan Uganda 13 12 Ethiopia 12 Brazil United Kingdom 12 11 Thailand 10 Iran 10 France 10 Nigeria 9 The Netherlands 9 Philippines 7 Brunei Darussalam 6

24 STOP The lower the score, the better the ranking 0-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24 25-27 28-30

Figure 6: Governments that have acted to

Mozambique

Kazakhstan

protect themselves with Tanzania Zambia

Germany Sudan

Japan Romania Ghana preventive measures Lebanon Turkey Georgia South AfricaCosta Rica 25

25 25

25 25 23 Egypt 23 Myanmar 23 22 22 Czech Republic Ecuador 22 0 22 Ukraine 22 Malaysia 22 21 21 21 Uruguay 20 USA 20 3 20 Spain 19 Lao PDR Peru 19 Solomon Islands Korea (Republic of) 19 Argentina Chile 19 19 6 19 Colombia 19 18 18 BangladeshChina 18 9 18 Nepal Cambodia 18

Vietnam 17 17 12 Kenya 16 16 IndonesiaIndia 16 15 Canada 16 Mexico 16 Sri Lanka 15 14 Israel 18 Pakistan 14 New Zealand 13 Maldives 13 21 13 Jordan Uganda 13 12 Ethiopia 12 24 Brazil United Kingdom 12 11 Thailand 10 27 Iran 10 France 10 Nigeria 9 30 The Netherlands 9 Philippines 7 Brunei Darussalam 6

Score

Global Tobacco Industry Interference Index 2020 25 7. Governments can create a firewall with preventive measures

Article 5.3 Guidelines provide In the Netherlands, the government has a protocol for civil servants in their interactions with a range of preventive actions the tobacco industry and its representatives.139 governments can take to protect Additionally, all civil servants are obliged to comply with the “Code of Conduct for Integrity their tobacco control policies from in the State” of the Dutch government,140 which being sabotaged by commercial and includes a clause aimed specifically at lobbyists vested interests. from the tobacco industry, i.e. avoiding lobbyists to prevent undue influence, ensuring transparency if unavoidable and prohibiting lobbying by former Several countries have made progress in drawing ministers for two years after leaving office. up measures to guide officials in their interactions with the tobacco industry, including Brunei Thailand’s Ministry of Public Health (MOPH)’s 141 Darussalam, the Netherlands, Thailand and guidelines on interaction with tobacco Pakistan (Figure 6). entrepreneurs and related persons and the Office of the Civil Service Commission’s regulation prohibit In November 2019, Brunei Darussalam adopted a all public officials from interacting with the tobacco code of conduct (circular),137 issued by the Prime industry in a manner that may lead to policy Minister’s Office, applicable to all civil servants interference. In addition, the tobacco industry in that prohibits unnecessary interactions with the Thailand is required to provide information about tobacco industry or its representatives, requires its business which includes its production or transparency in any necessary (regulatory) imports, its marketing expenditure and revenue.142 interaction with the tobacco industry and rejects 143 partnerships with and funding or sponsorship from Nigeria’s National Tobacco Control Act (Section 27) the tobacco industry. forbids the tobacco industry from offering any donations to any government entity. It also forbids In 2019, Pakistan adopted and made public its any government agency/entity from accepting or national action plan to counter tobacco industry soliciting any contribution of any kind. interference, which is being implemented in two phases: the first phase to obtain approval from all Ministries/departments of health in several sectors and the second phase to develop training countries had earlier developed a code for their materials for implementation.138 department, including Colombia, Indonesia and

26 STOP Figure 7: Comparison of 33 countries between 2019-2020

Brazil +14

Turkey +9

Indonesia +7

Ukraine +7

Kenya +7

Korea (Republic of) +6

United Kingdom +6

Lao PDR +5 Score has China +4 deteriorated Iran +4

Tanzania +3

Philippines +3

Nepal +2

Uganda +2

Lebanon +1

Malaysia +1

Myanmar +1

Cambodia +1

0 Japan

0 Canada

0 Thailand

0 Uruguay

-2 Vietnam

-2 Jordan

-6 USA

-7 France

-8 India Score has -9 Bangladesh improved -12 Mexico

-12 Egypt

-14 Sri Lanka

-14 South Africa

-16 Pakistan

0 indicates no change.

Global Tobacco Industry Interference Index 2020 27 Lao PDR, as a first step towards addressing industry After surviving court challenges for applying interference. However, the tobacco industry has large pictorial warnings on cigarette packs, the lobbied non-health departments in these countries Sri Lankan government has now approved plain to protect and champion its business, stressing the packaging of tobacco, and the Health Ministry need for a whole-of-government approach to halting went to remarkable lengths to benefits that were industry interference. to be given to the tobacco industry and developed guidelines to implement Article 5.3 to protect tobacco Most countries have anti-corruption laws and control policies. general codes for their public officials addressing issues such as bribery and non-acceptance of gifts Brazil, Turkey, Indonesia, Kenya and Ukraine show and contributions from private entities, which can significant deterioration in their scores. be applied while they draw up specific tobacco control guidance. China, in using its anti-corruption Brazil’s deterioration is seen particularly in law in November 2019, charged a former Deputy allowing the tobacco industry to participate in Director of STMA with bribery,144 while earlier in policy development. A working group was created May, a former director of the Yunnan Provincial through the Ministry of Justice and Public Security Tobacco Monopoly Bureau, also accused of bribery, to explore reducing tax on locally manufactured was sentenced to 13 years imprisonment.145 cigarettes, chaired by a representative of the Federal Police.146, 147 Philip Morris Brasil, through its CSR Zambia, Tanzania, Mozambique and Kazakhstan activities, had donated equipment to the Federal have neglected to firewall their tobacco control Police of Naviraí, municipality of Mato Grosso do Sul efforts and have been vulnerable to high levels to fight the illegal cigarette trade.148 of industry interference (Figure 6). Countries that persist in viewing the tobacco industry positively Turkey saw deterioration in its conflict of interest and as economically crucial, such as Indonesia, situation with the appointment of the director Romania and Japan, leave their tobacco control of BAT Turkey as their new Deputy Minister of 149 policies vulnerable to being undermined or Commerce, while Indonesia’s deterioration is in defeated. These countries also continue to show increased instances of unnecessary interactions, weak tobacco control measures. where ministers and senior officials from multiple ministries endorsed various tobacco industry activities including signing an MOU with Countries that improved Sampoerna/PMI.150

vs. those that deteriorated In Kenya, although government officials are not between 2019 and 2020 allowed to endorse or accept donations from the tobacco industry, they accepted a donation from Between 2018 and 2019, 11 countries showed the industry to the COVID-19 Emergency Response improvement while 15 countries showed scores that Fund established by the President.151 There was have deteriorated (Figure 7). Pakistan, South Africa deterioration in unnecessary interactions152 while and Sri Lanka showed the most improvement. there has been no progress in the implementation of preventive measures as Kenya waits for its Cabinet Pakistan’s improvement was across nearly every to prescribe a code of conduct for public officials. category including reversing tobacco taxation from three- back to two-tier, improving transparency Ukraine deteriorated mostly in unnecessary and making its new policy on interaction with interaction with the tobacco industry, especially on the tobacco industry public. South Africa made taxation issues and tackling illicit trade.153 Conflicts great strides in ensuring the Ministry of Health led of interest worsened when the former Deputy the effort in tobacco control policy development, Prosecutor General went on to become deputy rejecting submissions from the tobacco industry on director and head of the program against smuggling its taxation policy. at the Ukrainian Institute for the Future, a think tank supported by PMI.154

28 STOP Conclusion

As in the first Global Tobacco Industry Interference Index report, this second report shows that lack As countries step-up of transparency, conflict of interest “efforts to strengthen their and the bestowment of incentives tobacco control measures, to the tobacco industry remain the tobacco industry big problems in many countries is also intensifying and underscore the importance of its interference. governments taking concrete action to protect their health policies.

Very few countries are spared from tobacco ” industry interference, and no government can rest on its laurels just because they have measures in place, noting the tobacco industry’s propensity to circumvent them. The predatory and aggressive way in which the tobacco industry conducts its business warrants governments to implement the recommendations outlined in Article 5.3 Guidelines urgently and be vigilant in monitoring the tobacco industry.

More countries deteriorated compared to those that made improvements, indicating a global need for governments to step up their efforts in protecting their policies and halting tobacco industry interference. While there is progress, it has been moving at a glacial pace relative to the aggressive interference from the industry. Non- health agencies remain particularly vulnerable to industry interference, and political will is needed to effectively implement Article 5.3.

Global Tobacco Industry Interference Index 2020 29 Recommendations

Governments can halt tobacco industry interference. The quicker governments act to implement the recommendations in the Article 5.3 Guidelines, the better protected they will be to advance their tobacco control policies. They need to take the following action:

1. Protect tobacco control policies using a whole-of-government approach

Non-health agencies must also reject tobacco industry interference. Bring non-health agencies up to speed on the content of Article 5.3 recommendations to stop the industry from undermining and delaying tobacco control measures.

2. Limit interactions with the tobacco industry to only when strictly necessary

Stopping unnecessary interactions is vital to avoiding industry interference. Governments should limit interactions to controlling and regulating the industry.

3. Ensure transparency when interacting with the tobacco industry

Greater transparency when dealing with the tobacco industry will reduce instances of interference. All interactions with the tobacco industry must be recorded and made publicly available.

4. Protect government officials from tobacco industry influence

Officials need to be free to develop and implement tobacco control measures without industry influence or interference. Adopting a code of conduct or guidance, which shields them from industry interference, will protect tobacco control; however, to be effective, this should apply to all public and elected officials.

30 STOP “The tobacco industry will not stop interfering. Civil society can expose and counter industry interference, but it is in the hands of governments to halt it altogether.”

5. Reject non-binding agreements with the tobacco industry

Partnership and collaboration with the tobacco industry compromises the government and is not effective in achieving tobacco control policy objectives since the industry’s interests conflict with public health goals.

6. Denormalize so-called socially responsible activities of the tobacco industry

Governments are called to denormalize these CSR activities, as they are a form of sponsorship, and the industry uses them to whitewash the harm they cause to society and influence policymakers.

7. Stop giving incentives to the tobacco industry

The tobacco industry should not be given incentives, exemptions or tax breaks to run its harmful business. Remove duty-free status of tobacco at duty-free shops.

8. Require information from the tobacco industry

The tobacco industry should be made to disclose its expenditure on marketing, lobbying and philanthropic activities.

9. Treat state-owned enterprises the same as other tobacco companies

State-owned tobacco entities should not be given governmental privilege or be allowed to influence tobacco control policy.

Global Tobacco Industry Interference Index 2020 31 Summary table

AR BD BR BN KH CA CL CN CO CR CZ EC EG ET FR GE DE GH IN ID IR IL JP JO KZ KE KR LA LB MY MV

Level of participation in policy development 5 6 9 1 4 5 6 18 15 5 7 10 9 7 4 15 5 6 7 15 4 14 19 16 8 2 3 12 10 10 5

The government accepts, supports or endorses offers of assistance by or in collaboration with the tobacco industry 1 4 3 0 1 2 2 5 4 0 4 3 0 4 2 4 3 3 1 5 1 5 4 5 2 0 0 5 2 1 0 in implementing tobacco control policies (Rec 3.1)

The government accepts, supports or endorses legislation drafted by or in collaboration with the tobacco industry 3 0 3 0 1 1 2 3 4 0 2 4 3 1 1 4 0 1 0 5 1 4 5 5 2 0 1 5 4 3 0 (Rec 3.4)

The government allows the tobacco industry to sit in multi-sectoral committee/advisory group that sets 1 1 2 0 1 1 1 5 5 4 0 2 5 1 0 3 1 1 5 5 1 4 5 5 3 1 1 1 3 5 4 public health policy (Rec 4.8)

The government allows representatives from the tobacco industry (including State-owned) in the delegation to the 0 1 1 1 1 1 1 5 2 1 1 1 1 1 1 4 1 1 1 0 1 1 5 1 1 1 1 1 1 1 1 COP or subsidiary bodies or accepts their sponsorship for delegates (Rec 4.9 & 8.3)

Tobacco-related CSR activities 5 5 2 0 3 3 3 5 4 4 3 5 5 2 1 4 5 3 4 5 1 0 5 5 5 5 5 0 3 3 0

The government receives contributions from the tobacco industry (including so-called CSR contributions) (Rec 6.4); Government agencies/officials endorse, form partnerships 5 5 2 0 3 3 3 5 4 4 3 5 5 2 1 4 5 3 4 5 1 0 5 5 5 5 5 0 3 3 0 with/participate in tobacco industry CSR activities (Rec 6.2)

Benefits to the tobacco industry 7 10 4 0 6 7 10 7 7 4 8 8 1 6 2 8 7 6 5 10 7 7 8 8 4 4 8 8 9 8 8

The government accommodates requests from the industry for longer implementation time or postponement 2 5 0 0 2 4 5 4 4 0 3 5 0 2 0 4 4 2 0 5 3 4 3 5 0 1 5 3 5 5 3 of tobacco control law (Rec 7.1)

The government gives privileges, incentives, exemptions 5 5 4 0 4 3 5 3 3 4 5 3 1 4 2 4 3 4 5 5 4 3 5 3 4 3 3 5 4 3 5 or benefits to the tobacco industry (Rec 7.3)

Forms of unnecessary interaction 15 8 11 0 3 8 7 12 15 6 5 12 9 6 3 9 7 3 9 15 2 0 10 15 6 5 5 15 12 5 2

Top-level government officials meet with/foster relations with the tobacco companies such as attending social 5 5 5 0 3 3 1 3 5 2 3 4 3 2 1 3 4 1 2 5 1 0 3 5 4 5 5 5 4 3 1 functions and events sponsored or organized by the tobacco companies (Rec 2.1)

The government accepts assistance/offers of assistance 5 0 2 0 0 0 2 5 5 4 0 4 2 3 1 3 2 1 3 5 1 0 3 5 2 0 0 5 4 2 1 from the tobacco industry on enforcement (Rec 3.1 & 4.3)

The government accepts, supports, endorses or enters into partnerships or agreements with the tobacco industry 5 3 4 0 0 5 4 4 5 0 2 4 4 1 1 3 1 1 4 5 0 0 4 5 0 0 0 5 4 0 0 (Rec 3.1)

32 STOP AR BD BR BN KH CA CL CN CO CR CZ EC EG ET FR GE DE GH IN ID IR IL JP JO KZ KE KR LA LB MY MV