VARIOUS: European Union Commission and Philip Morris tobacco company are negotiating settlement over cigarette smuggling

Record ID: 861983

  • Title: VARIOUS: European Union Commission and Philip Morris tobacco company are negotiating settlement over cigarette smuggling
  • Date: 4th April 2004
  • Summary: (EU) DUBLIN, IRELAND (RECENT - MARCH 28, 2004) (REUTERS) VARIOUS OF PEOPLE SMOKING AT BAR WIDE OF BAR WITH NEWSPAPER CUTTING ABOUT SMOK,ING BAN CLOSE OF NO SMOKING SIGN
  • Embargoed: 19th April 2004 13:00
  • Keywords:
  • Location: BRUSSELS, BELGIUM, DUBLIN, IRELAND; PARIS, FRANCE; VARIOUS UNIDENTIFIED LOCATIONS, UNITED STATES
  • City:
  • Country: Ireland
  • Topics: Crime / Law Enforcement,International Relations
  • Reuters ID: LVA8LWNW3U5DIQEQ2BYE4EZEWVZW
  • Aspect Ratio:
  • Story Text: The European Commission and U.S. tobacco company Philip Morris are negotiating dispute settlement over cigarette smuggling.
    The European Commission and U.S. tobacco company Philip Morris, a unit of Altria Group, are negotiating a $1 billion U.S. dollar payment to end a dispute over cigarette smuggling, the two sides said on Monday (April 5, 2004).
    David Davies, Philip Morris Senior Vice President, Corporate Affairs, told Reuters the tobacco giant would pay approximately $1 billion over 12 years to end the dispute.
    Philip Morris, maker of Marlboro, L&M and Chesterfield cigarettes, said it had offered the payment to help fund anti-contraband and anti-counterfeit efforts.
    The European Union executive has been waging a long-running lawsuit in U.S. courts accusing the company, along with U.S. rival R.J. Reynolds, of colluding in the smuggling of cigarettes to evade customs and taxes in the EU.
    As EU countries raise taxation on cigarettes in a bid to deter smoking, cigarette smuggling is estimated to cost hundreds of millions of euros (dollars) in lost revenues.
    Davies told Reuters from Lausanne in Switzerland that the draft agreement currently under negotiation did not concern the lawsuit, which had already been thrown out by a U.S. court.
    A Commission spokeswoman confirmed a lawsuit brought by the Commission had been dismissed, but said that ruling was still subject to appeal.
    She said the payments would be made to the Commission and 10 member states.
    Schreyer said the $1 billion should not be seen as a fine.
    The Commission spokeswoman said the money would be used to clamp down on smuggling and fraud.
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