Distinguished MOP President,
Dear Head of the FCTC Secretariat
Vice Minister Of Health of Panama
Your Excellencies,
Distinguished guests, ladies and gentlemen
Let me greet you on behalf Montenegro Government and say I feel privileged to take part at this important meeting.
At the same time, I would like to thank to the Head of the WHO FCTC Secretariat and express gratitude to the Government of Panama for hosting us in beautiful Panama city.
I would like to start my statement by quoting a segment of an interview delivered by HE Milojko Spajic to Forbes magazine – one of the most influential magazine in the world
“ Montenegro, a small yet forward-thinking nation, is laying a foundation to become Europe's first longevity-oriented state – a state that implements policies to prioritize the healthy life expectancy and wellbeing of its citizens in the present”.
If we look at the data on tobacco use in Montenegro, which are alarming, we have a lot of work to do to reach our goal – health and wellbeing for all.
Smoking prevalence in Montenegro exceeds the average we see in the whole EURO Region consisting of 53 Member states. 37.5 % Montenegrin adults are smoking. Smoking prevalence is on rise in women. Intense penetration of tobacco products, in particular novel tobacco products, in young people (10%) is alarming.
Every year, in Montenegro more than 2000 lives are lost due to tobacco use. Every life lost to tobacco is not only a loss for the family and society but also a tragedy – as we know that these deaths are preventable and not inevitable.
Tobacco is not only harming public health, but it is clearly a barrier to sustainable, inclusive and smart growth and development.
The economic costs of tobacco use in Montenegro are substantial and include significant health care costs for treating the diseases caused by tobacco use as well as the lost human capital that results from tobacco-attributable morbidity and mortality.
We are very grateful to the WHO/FCTC 2030 project for the Tobacco Control Investment Case that has been prepared for Montenegro. This has laid bare the economic reality of tobacco use. Tobacco causes vast economic costs in this country, representing over 7% of GDP annually. Tobacco will cost Montenegro by 2035 estimated 4 billion EUR.
Tobacco companies often claim to be making economic contributions, but this is not the case. Their products cause disease,misery and suffering, ruining lives and families. They are also a drain on Montenegro’s economy, health and well-being.
Illicit tobacco trade makes this development challenge more complex.
It is a notorious fact - tobacco is killing our health, and we all agree - illicit trade is killing our economy. Illicit tobacco trade is dramatically damaging our economy by diverting taxpayers money and reducing government revenues. Furthermore, illicit tobacco trade is deepening inequalities, because illicit tobacco products are often cheaper and more accessible to vulnerable populations, such as our young people. Very often illicit tobacco trade is invoked by the tobacco industry as an argument to oppose the government actions on accelerating the excise calendar and using fiscal measures to curb tobacco epidemic.
For long period, Montenegro has been known as a hub of illicit trade in tobacco products among the Western Balkan Countries but also in the European region. A high share of illicit trade in tobacco products has been a consequence of weaknesses in governance and regulation, high level corruption, insufficient enforcement capacity, and organized crime networks deeply rooted in the state structures.
Dear Colleagues,
Whenever faced with a complex challenge, effective response requires comprehensive approach..
Eliminating illicit tobacco trade requires strong political leadership and commitment, comprehensive, multisectoral approach, strong partnership and international cooperation.
Montenegro will be fully committed to implementing the Protocol to Eliminate Illicit Trade in Tobacco Products (Protocol) and eliminating all forms of illicit trade in tobacco products through a comprehensive package of measures with WHO /FCTC support but also in cooperation with other strategic partners and member states.
Eliminating illicit trade in tobacco products has no alternative for Montenegro Government. It is both possible and critical to advance multiple agendas - public health, public finance, governance, or equity.
We demonstrate commitment through targeted actions. We do not only talk. We act.
Ministry of finance is committed to implementing ratified WHO FCTC by accelerating action on taxing tobacco products further, as it is one of the most effective ways to discourage smokers and it provides governments with revenue. Our plan is to
- Accelerate harmonization of the national excise tax calendar with the EU excise tax calendar
- And continue raising tobacco taxes. As of January this year tobacco taxes are over 76 percent of retail prices.
We are determined to continue increasing excise tax at regular intervals. It is realistic to expect that whenever Government comes in with robust fiscal measures tobacco industry steers up the narrative that excise taxes are anti-poor, would cause job losses, trigger explosion of the grey market and result in expensive court actions.
Going backwards and promoting tobacco industry interests is not an option for the Government led by HE Milojko Spajic. Our strategic priority is healthy citizen, healthy environment and healthy economy.
We are confident that the planned fiscal measures would lead to significant price increases and decrease affordability of deadly tobacco products, prompt many current users to stop smoking, and prevent our young people from initiating tobacco use, resulting to considerable reductions in the mortality and diseases caused by tobacco that kills half of its users when using it as recommended by the manufacturer. Tobacco tax policy can play an important role in our efforts to build back better.
Fighting against the powerful vested interests that profit from tobacco use which generates disease and deaths requires visionary leadership and courage for political leaders. But we all agree, that accountable and transparent public administration with operational firewall aligned with WHO FCTC Art 5.3 to protect against tobacco industry interference has no alternative!
Another name for fighting tobacco industry and addressing tobacco epidemic is collaboration – across sectors and across borders. It is necessary to promote cooperation with national stakeholders (including ministry of trade, ministry of health, and local governments) to strengthen efforts to effectively implement tobacco taxes, eliminate illicit trade in tobacco products and protect against tobacco industry interference, as I ve just mentioned. Montenegro remains committed to promoting regional collaboration among the Western Balkan Countries in close collaboration with our dear friend dr Hans Kluge, WHO Regional Director for Europe and European Union. Western Balkan(WB) has a potential to become a part of the solution and contribute significantly to eliminating illicit tobacco trade. Times when the WB countries were only a part of the problem – known as tobacco smuggling – are history.
Furthermore, our Government will consider earmarking revenue generated from tobacco taxes to tobacco control programmes, health promotion, and disease prevention, in line with Article 26.2 of the WHO FCTC, and wider sustainable development in line with the Addis Ababa Agenda.
With WHO/FCTC Secretariat support Montenegro completed the Needs assessment for the implementation of the Protocol. One of the key findings was that Montenegro needs to assess compliance of the track and trace system *( T&T system) with the requirements set by the EU Tobacco Products Directive and strengthen further the existing T&T system in the country.
In order for us to achieve a healthy, tobacco-free future, we must ensure operational control mechanisms that track and eliminate illicit trade, which has potential to undermine our collective efforts in implementing the WHO FCTC and addressing tobacco epidemic.
Expected benefits will derive mainly from (1) better collection of taxes and (2) at least a partial reduction in the cheap supplies of illegal tobacco products that have been found to affect the uptake and general prevalence of tobacco consumption in the country. I would like to thank WHO /FCTC Secretariat for the continued and generous support in this regard. Every step we make to strengthen T&T system is contributing to healthier future, strengthening governance, accelerating the EU integration process and bringing us closer to the EU membership.
In the past, our free zones we far too often used to manufacture and transport illicit goods, including tobacco products. Additionally, controls and inspections by enforcement agencies were irregular and suboptimal.
Free zones in Montenegro will be used to serve the primary purpose - generate employment and encourage investment; but they will not be used any longer for smuggling tobacco products or facilitating their illicit warehousing and movement. We are grateful for the WHO/FCTC Secretariat strong recommendations on strengthening our free zones arrangement including those on prohibition of intermingling of tobacco and non-tobacco products in a single container. Sharing knowledge and learning about other country practices and experiences would be invaluable for Montenegro in this regard. Only through strong cooperation and partnership efforts against illicit trade of tobacco we may strengthen tobacco control policies at national and global level.
Dear Friends,
I am coming from a small country. BUT, during the COVID pandemic – unprecedented crisis in the history on the UN system - we learnt there are no small and large countries. There are only small countries and countries that have not realized yet they are small when faced with a large scale crisis.
Our response is as strong as the weakest link. Hence we have to join our efforts in fighting against the tobacco industry and tobacco epidemic.
Governments face a moral and legal imperative to use the strongest possible measures to protect their citizens from tobacco.
Our way forward is
- Only together to implement commitments enshrined in the WHO FCTC and Protocol
as framework that offers a comprehensive set of measures that have proven to save millions of lives and our budgets.
United in action for better health, healthy environment and healthy economy.
Thank you.