Did you know that the tobacco industry plays a huge role in the EU’s economy?
In 2021, it added a whopping €194.5 billion to the EU-27 GDP. That’s like the EU’s 16th largest economy! And that’s not all. The Economic Footprint of Traditional Tobacco and New Nicotine Products Report, which was put together by the Tobacco Europe (TE) Manufacturers Association and crafted by S&P Global, is full of other fascinating facts.
Want to dive deeper? There’s an interactive website with all the important details from the report.
Illicit trade is a huge problem, costing the world about 3% of its total GDP every year…much of it in tobacco products. Think about it: the World Bank says that illegal cigarettes alone cause a loss of revenues of $40 to $50 billion annually. In France, it’s staggering — more than 30% of all cigarettes sold are illegal.
But it’s not just about money. When people buy these illegal products, they’re unknowingly fueling a cycle of crime. It’s not just avoiding taxes; it’s supporting criminal gangs and networks.
The Transnational Alliance to Combat Illicit Trade (TRACIT) points out that these groups use forced labor to make these illegal cigarettes. And, according to the Center for the Analysis of Terrorism, tobacco smuggling and counterfeiting have become a major money-maker for terrorist groups in the last decade.
Just this November 2023, law enforcement cracked down on cigarette mafia operations in Germany → and Slovakia → . Belgium saw six illegal factories shut down in 2023, with over 300 million illegal cigarettes confiscated →
At JTI, we’re actively working with political and law enforcement bodies at all levels to put an end to this illegal empire and curb the spread of organized crime.
Discover the JTI supported podcast series ‘Exposing the illegal empire →’ by Crime Stoppers International and how a fake goods illegal empire funds global crime – from gun running to drug smuggling, child trafficking to terrorism.
In Brussels, we teamed up with Euractiv to hold a discussion → about the impact of this issue and potential solutions, involving policymakers, academics and experts. You can check out an op-ed by our VP of Fiscal Affairs and Anti-Illicit Trade →.
For a deeper understanding, there’s an interactive website by Economist Impact → with detailed research on the scale, scope, and flows of illicit trade. It’s a wealth of information that really puts the issue into perspective.
What’s Happening in Brussels?
The European Commission’s DG SANTE (Directorate-General for Health and Food Safety) has been evaluating the EU’s tobacco laws, focusing on the Tobacco Product Directive and the Tobacco Advertising Directive. During the public consultation, a wide range of voices have been heard, from civil society groups to consumers, public authorities, and manufacturers.
JTI’s position is clear in this conversation. We acknowledge that tobacco and nicotine products are risky for health and believe it’s crucial that everyone is well-informed about these risks. We only make our products available to adults. At the same time, we advocate that adults should have the freedom to choose from a variety of well-regulated tobacco and nicotine products that meet their demands and adhere to all relevant standards.
Furthermore, JTI is pushing for a more open and comprehensive debate to establish an evidence-based harm reduction policy. This includes recognizing the potentially less harmful effects of newer tobacco products.
If you’re curious about what others are saying, all the contributions to the public consultation are available on the EU Commission’s website →. And if you want to delve into JTI’s full position, you can find our detailed position paper here.
Challenges with the Brussels Approach to Public Consultations
Public consultations are a key aspect of democratic governance, essential for crafting transparent, efficient and effective regulations. They’re supposed to be ongoing conversations that help draft better laws. The OECD emphasizes that these processes bring in expertise and perspectives from those directly impacted, balance various interests, identify unintended consequences and provide a quality check. They’re also crucial for public participation, ensuring that EU policymaking is based on solid evidence, laws are simplified, and all stakeholders are involved, which in turn fosters trust in both the process and the outcomes.
However, Tobacco Europe, our industry association, has raised some concerns about how the European Commission has been handling the recent public consultation process. They’ve sent a letter to the Commission pointing out these issues, arguing that the current approach is hindering accountability and transparency. This letter is available here and provides insight into why our industry feels the process is flawed.
At JTI, we’re strong believers in the power of open, transparent and inclusive conversations when it comes to public policymaking. It’s crucial that every stakeholder’s voice is heard and considered to ensure that policies are based on facts and solid evidence. We’re pushing for more transparency, accountability, and inclusiveness so that no single perspective dominates the decision-making process on public policies.
Some groups urge governments to ignore certain viewpoints or exclude certain actors from key public discussions – we think this approach is a mistake. Exclusion only breeds distrust among the public and fuels conspiracy theories. It’s important to understand that everyone has their own interests at stake. Blaming or shaming specific ideas or interests doesn’t help anyone.
Instead, we need to recognize that every voice matters. Regularly sharing and discussing all opinions in a transparent, rule-based way is the best path to finding solutions that serve the common public interest. By doing this, we can build trust in government and ensure that policies truly reflect the needs and perspectives of everyone involved.
Don’t miss out on these articles and studies from think tanks and academia which shed some light on lifestyle regulations and the need to consider the evolution happening in the industry.
• Nanny State Index 2023 | EPICENTER (epicenternetwork.eu)
• The Right Side of History — Global State of Tobacco Harm Reduction (gsthr.org)
• European Commission Continues to Misrepresent the Risk of Nicotine Pouches – Pouchforum
Your thoughts matter to us! Are there any issues you want us to address and write about?
Get in touch! EUAffairs@jti.com
