Distinguished guests and respected colleagues, it is a pleasure to see so many of you here to discuss the important issue of promoting the entry into force of the Protocol to Eliminate Illicit Trade in Tobacco Products—the first Protocol to the WHO FCTC.
The countdown has begun for a united stand against illicit trade in tobacco products. To date, 20 WHO FCTC Parties are Parties to the Protocol, three of which are from the Americas Region: Ecuador, Nicaragua, and Uruguay. We have reached the halfway mark to the 40 Parties needed for the Protocol’s entry into force and we need to continue this momentum. It is not a case of ‘if’ but ‘when’ the Protocol will become binding international law.
Illicit trade increases access to often cheaper tobacco products, which in turn fuels the tobacco epidemic and undermines existing tobacco control policies. Within Latin America specifically, according to Euromonitor estimates, the percentage of illicit trade shares—a measurement of the percentage of retail sales of illicit tobacco products—is amongst the highest in the world. This signifies just how important it is for all countries in the Region to become Parties to the Protocol in order to collectively tackle this pressing issue.
The Protocol represents the strongest commitment WHO FCTC Parties can make to combat illicit trade and prioritize public health. It requires Parties to take measure to control the supply chain and to cooperate internationally on a range of matters, including the establishment of a global tracking and tracing regime. In this regard, Brazil has been a front runner in establishing a tracking and tracing system as it was one of the first countries to introduce an automated cigarette production monitoring system, which lead to a reduction in tax evasion of 100 million USD.
This demonstrates that becoming a Party to the Protocol is not just good policy; it is good economics. In fact, eliminating illicit trade in tobacco is estimated to generate an annual tax windfall of 31 billion USD for governments. Throughout this Workshop we will be discussing these different aspects of the Protocol within the Americas regional context with the hopes that you will bring this important information back to your respective governments.
The multisectoral nature of the Protocol requires coordination between many government agencies—health, customs, tax, law enforcement, etc.—which is one of the reasons why the Conference of the Parties requested the Convention Secretariat to establish a Panel of Experts to assist Parties in the implementation of the Protocol. The Panel is composed of up to two experts per WHO region, mandated to support the Secretariat in the provision of technical and legal advice upon a Party’s request. We are fortunate enough to have the two representatives from the Americas Region with us today: Juan Ricardo Ortega, and Jorge Luis Gaona. And we encourage you to engage with them on any and all technical queries you may have.
In addition to the expertise needed to promote the Protocol, intergovernmental organizations play a crucial role in the strengthening the ability of governments to tackle illicit trade. Greater communication and collaboration between jurisdictions and international bodies such as the World Customs Organization and the World Bank, as well as with regional bodies like Mercosur, will allow for effective administration of the Protocol.
Hardworking NGOs have also proved indispensable in the process, particularly in bolstering political commitment by high-level officials and battling corruption or ‘industry capture’ of customs or excise officers. They also facilitate the sharing of information with relevant government sectors, particularly those outside of the traditional health sector, which is so needed in implementing the Protocol.
The Protocol is a powerful means to stop this serious threat to public health. To this end, the Protocol is triply impactful because not only does it improve public health, it also helps cut crime and curb an important revenue source for the tobacco industry.
Finally, I would like to thank the many efforts that went into making this Multisectoral Workshop possible: Firstly, Ricardo Barros—Minister of Health, and Jose Serra—Minister of Foreign Affairs for offering Brazil to host such an important event; to ANVISA, CONICQ, and PAHO for their logistical, budgetary and planning support; and to the European Union for helping fund regional workshops such as this.
In closing, I wish you a fruitful and productive next couple of days. There is no better time than now to join in on the promotion of the entry into force of the Protocol and the Convention Secretariat is here to support your diligent efforts to do so.