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TIME: Almanac 1995
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<text id=89TT2541>
<title>
Oct. 02, 1989: Fuming Over A Hazardous Export
</title>
<history>
TIME--The Weekly Newsmagazine--1989
Oct. 02, 1989 A Day In The Life Of China
</history>
<article>
<source>Time Magazine</source>
<hdr>
BUSINESS, Page 82
Fuming over a Hazardous Export
</hdr><body>
<p>U.S. tobacco firms catch flak for pushing cigarettes in Asia
</p>
<p> During his eight-year tenure as Surgeon General, C. Everett
Koop campaigned passionately against cigarette smoking among
Americans. Last week Koop took on the tobacco industry once
again, but this time he was fighting the sale of U.S. cigarettes
in Asia. Testifying before a committee of the U.S. Trade
Representative's office, Koop blasted the industry's contention
that the U.S. Government should pressure Thailand, which bans
all cigarette imports, to open its market to American
manufacturers. Said Koop, who retires Oct. 1: "At a time when
we are pleading with foreign governments to stop the export of
cocaine, it is the height of hypocrisy for the United States to
export tobacco."
</p>
<p> American cigarette makers want Carla Hills, the U.S. Trade
Representative, to break down Thailand's import barriers so
that they can charge into that country's market. Specifically,
the industry filed a petition under Section 301 of the Trade Act
of 1974 accusing Thailand of unfair trade practices. Hills is
investigating the claim. But the American tobacco lobby is
bitterly opposed by U.S. public-health advocates and the Thai
government, which has the somewhat contradictory motives of
protecting its citizens' health and defending the interests of
its entrenched cigarette monopoly.
</p>
<p> A move into Thailand would be the latest victory in an
aggressive campaign by U.S. tobacco companies to conquer Asian
markets. Since 1986, U.S. trade negotiators have helped
cigarette makers break down import barriers in Japan, Taiwan and
South Korea. As a result, America's worldwide cigarette exports
reached $2.6 billion last year, double the sales of 1986. The
U.S. industry has come to depend on exports for growth, since
a declining number of Americans are smoking. Consumption of
cigarettes in the U.S. has fallen about 2% a year, to a volume
of 562 billion in 1988.
</p>
<p> U.S. tobacco companies contend that they have a right to
demand fair competition. Said Trade Representative Hills last
week: "Where other nations permit local cigarettes to be
advertised and sold, we say there may as well be U.S. cigarettes
because we believe in nondiscrimination." Cigarette makers also
insist that they are not inspiring new smokers but offering
better choices for people who already have a taste for nicotine.
Says Brenda Follmer, a spokeswoman for R.J. Reynolds Tobacco
International, which sells the Winston and Camel brands: "People
say we are trying to make the Asians light up. But they're
already lighting up."
</p>
<p> The industry's critics argue that the U.S. should be just
as responsible for the hazards of the products it sells overseas
as for the goods it consumes at home. Says Representative
Chester Atkins, a Massachusetts Democrat: "Our trade policy
sends a message to our partners that Asian lungs are more
expendable than American lungs." Many Asians voice resentment
about that notion. At the hearings in Washington last week, Thai
National Assembly Member Surin Pitsuwan asked, "Where is the
concern for humanity once felt by the United States?"
</p>
<p> When they arrive in Asia, U.S. cigarette producers often
try to light up the female and teenage market, a strategy that
particularly angers health experts. In Taiwan street peddlers
hired by U.S. firms hand out free cigarette samples at discos.
Marketers for R.J. Reynolds last year planned to charge five
empty packets of its Winston cigarettes as admission to a rock
concert in Taiwan but dropped the idea in the face of a public
outcry.
</p>
<p> Yet a growing challenge to U.S. cigarette sales in Asia may
be the local competition. Japan Tobacco, a former state-run
monopoly that is being privatized, is already learning the
marketing ways of the Marlboro man and the Virginia Slims woman.
To attract younger customers, the company introduced a brand of
cigarettes known as Dean, playing off the popularity of
Hollywood legend James Dean. Since antismoking campaigns are
only beginning to build in most Asian countries, the region's
cigarette-marketing wars are likely to produce plenty of smoke
and profits for several years to come.
</p>
</body></article>
</text>