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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>
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