MOTION FOR A RESOLUTION on the Anti-Contraband and Anti-Counterfeit Agreement and General Release of 9 July 2004 among Philip Morris International and affiliates, the Union and its Member States
2.3.2016 - (2016/2555(RSP))
pursuant to Rule 128(5) of the Rules of Procedure
Inés Ayala Sender, Gilles Pargneaux on behalf of the S&D Group
See also joint motion for a resolution RC-B8-0312/2016
B8-0317/2016
European Parliament resolution on the Anti-Contraband and Anti-Counterfeit Agreement and General Release of 9 July 2004 among Philip Morris International and affiliates, the Union and its Member States
The European Parliament,
– having regard to the Anti-Contraband and Anti-Counterfeit Agreement and General Release of 9 July 2004 among Philip Morris International (PMI) and affiliates, the Union and its Member States of 9 July 2004,
– having regard to Directive 2014/40/EU of the European Parliament and of the Council of 3 April 2014 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco and related products and repealing Directive 2001/37/EC[1],
– having regard to the Protocol to Eliminate Illicit Trade in Tobacco Products adopted during the fifth session of the Conference of the Parties to the WHO Framework Convention on Tobacco Control by Decision FCTC/COP5 (1) of 12 November 2012,
– having regard to the Commission staff working document of 24 February 2016 entitled ‘Technical assessment of the experience made with the Anti-Contraband and Anti-Counterfeit Agreement and General Release of 9 July 2004 among Philip Morris International and affiliates, the Union and its Member States’ (SWD(2016)0044),
– having regard to its resolution of 11 October 2007 on the implications of the agreement between the Community, Member States and Philip Morris on intensifying the fight against fraud and cigarette smuggling and progress made in implementing the recommendations of Parliament’s Committee of Inquiry into the Community Transit System[2],
– having regard to the questions to the Commission on the Anti-Contraband and Anti-Counterfeit Agreement and General Release of 9 July 2004 among Philip Morris International and affiliates, the Union and its Member States (O-000010/2016 – B8‑0109/2016, O-000014/2016 – B8‑0110-2016, O-000015/2016 – B8-0111/2016, O‑000016/2016 – B8‑0112/2016, O-000017/2016 – B8-0113/2016, O-000018/2016 – B8‑0114/2016 and O-000019 – B8-0115/2016),
– having regard to Rules 128(5) and 123(2) of its Rules of Procedure,
A. whereas the core aim of the PMI agreement is to reduce the prevalence of PMI contraband on the illicit EU tobacco market;
B. whereas the Commission’s technical assessment of the PMI agreement concludes that this core objective has been effectively met, but that the reduction in PMI contraband has not led to an overall reduction in the number of illicit products on the EU market;
C. whereas the PMI agreement has provided financial benefits to public revenue of approximately USD 1 billion in annual payments and EUR 68.2 million in seizure payments, divided between the Commission (approximately 10 %) and the Member States (approximately 90 %);
D. whereas the PMI agreement is set to expire on 9 July 2016;
E. whereas there have been significant changes to the market environment since the current PMI agreement was signed, in particular the increased presence of non-branded cigarettes, often referred to as ‘cheap whites’, and the development of the new area of liquid nicotine sales for e-cigarettes;
F. whereas there have been significant changes to the regulatory environment since the current PMI agreement was signed, in particular the adoption of Directive 2014/40/EU concerning the manufacture, presentation and sale of tobacco and related products, and of the Protocol to the WHO Framework Convention on Tobacco Control;
G. whereas Cases C-358/14 Poland v Parliament and Council, C-477/14 Pillbox 38 (UK) Limited and C-547/14 Philip Morris Brands SARL and Others, which challenge Directive 2014/40/EU, are currently before the Court of Justice of the EU and should be withdrawn by the tobacco manufacturers in question at the earliest opportunity;
1. Welcomes the Protocol to Eliminate Illicit Trade in Tobacco Products (‘FCTC Protocol’), adopted by the parties to the WHO Framework Convention on Tobacco Control, and calls for the ratification process to be completed on time by 2022 or 2023;
2. Welcomes the adoption of Directive 2014/40/EU of the European Parliament and of the Council of 3 April 2014 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco and related products and repealing Directive 2001/37/EC[3] (the Tobacco Products Directive);
3. Emphasises that the FCTC Protocol and the Tobacco Products Directive together form the EU’s core instruments in its fight against the illicit tobacco trade;
4. Regrets that the Commission’s technical assessment of the experience of the PMI agreement was only published on 24 February 2016, despite its announcement in May 2015, thus undermining Parliament’s capacity to express its view in a timely manner on this complex and delicate matter;
5. Welcomes the conclusion of the Commission’s technical assessment that the PMI agreement has effectively met its objective of reducing the prevalence of PMI contraband on the illicit EU tobacco market;
6. Notes, however, that this reduction in PMI contraband did not lead to an overall reduction of illicit products on the EU market;
7. Emphasises the significant changes in the market environment since the current PMI agreement was signed, in particular the increased presence of ‘cheap whites’;
8. Notes that the track-and-trace system provided for in the Tobacco Products Directive should take effect in May 2019;
9. Emphasises that the Commission must take immediate steps to ensure the full transposition of the Tobacco Products Directive in all Member States;
10. Notes that several Member States have informally indicated to the Commission that the transposition process for the directive is completed; calls on the Commission to provide full information on the state of play of transposition following the expiry of the deadline of 20 May 2016;
11. Recalls that the FCTC Protocol will not come into effect until 2022 or 2023 at the earliest;
12. Notes that the key track-and-trace provisions of the FCTC Protocol will take effect five years after it enters into force;
13. Notes that 15 countries have ratified the FCTC Protocol so far, including five EU Member States, and that the EU is currently preparing to ratify it;
14. Calls on the Commission to ensure timely ratification of the FCTC Protocol by the EU and its Member States, as well as key third countries;
15. Expresses concern that an extension of the PMI agreement could undermine the EU’s efforts to push for timely ratification of the FCTC Protocol;
16. Expresses its belief that renewal of the PMI agreement may not be compatible with the EU’s obligations under Article 5(3) of the FCTC Protocol, which could cause reputational damage to the EU as a global leader on tobacco control;
17. Emphasises that the PMI agreement was an innovative and effective instrument when first concluded in 2004 in tackling the illicit tobacco trade, but stresses that the market and regulatory environment have experienced substantial changes since then;
18. Considers, therefore, that the PMI agreement no longer provides added value for the EU in its fight against the illicit tobacco trade;
19. Asks the Commission, therefore, to refrain from pursuing an extension or renegotiation of the PMI agreement beyond its current date of expiry;
20. Notes that the other three agreements with tobacco manufacturers remain in force until 2022 for Japan Tobacco International, 2030 for British American Tobacco and 2030 for Imperial Tobacco Limited;
21. Expresses concern that the four agreements with tobacco manufacturers do not deal with the issue of ‘cheap whites’; calls on the Commission, therefore, to come forward with an action plan setting out new measures aimed at tackling this problem as a matter of urgency;
22. Instructs its President to forward this resolution to the Council, the Commission and the governments and parliaments of the Member States.