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• Colombia Takes Action to Save Lives by Implementing Sweeping Smoke-Free Decree  

The government of Colombia took historic action this week to protect the health and lives of its citizens by implementing a sweeping smoke-free decree that applies to all indoor workplaces and public places. The decree was first introduced in May of 2008 and went into effect this week. It requires that all indoor workplaces and public places be smoke-free, including restaurants, bars, public transportation and medical and educational institutes.

The smoke-free decree is a major step forward in protecting the health of Colombia's 46 million residents and workers from the deadly effects of secondhand smoke and adds momentum to the growing smoke-free movement in Latin American and the world.

In Latin America, Colombia joins Uruguay, Panama, Mexico and five Argentinean provinces in having strong smoke-free laws and policies.

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• Stricter smoking ban takes effect in Colombia 

A ban on smoking in all public places went into effect on Sunday in Colombia, announced the Colombian government.

The ban applies to all public places, such as public transport vehicles, hospitals, kindergartens and schools, said the Ministry of Social Security and Health, which issued the ban on May 31, the21st World No Tobacco Day.

The ban also extends non-smoking area to bars, clubs, restaurants, business centers and airports, said the ministry.

Under the ban, "smoking areas" will no longer be seen in enclosed public places and all cigarettes sold within the country should carry the warning "smoking is harmful to your health" on their packages.

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• Smoke Signals in Cali 

Synopsis in English: Here's a snapshot of just how bad tobacco dependence is in some parts of Latin America and the Caribbean (LAC). Late last week the Municipal Secretary of Health for Colombia's second largest city, Cali (pop. 2.2 million), released the results of a recent study on risk factors for chronic non-communicable diseases . . . The study found that (1) the average age overall for starting smoking is seven, although there are some males that begin even earlier; (2) 53.7% of Cali men have smoked at some point in their life, while only 24.5% of Cali women have; (3) the prevalence of smoking differs by gender, 7.5% for women, 24.9% for men; (4) tobacco consumption prevalence increases with age up until you hit the 30-44 age bracket — from 13.3% for those under 24 years old to 24.2% for the 24-30 bracket — then falls to under 15% for those 45 and older.

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• Philip Morris Unit Offers $4.8M For 1.6% Coltabaco Stake ($$) 

Philip Morris International's Dutch unit, GWP CV, offered to pay 11.3 billion Colombian pesos ($4.8 million) to buy the shares it doesn't already own in Colombia's largest tobacco firm, Compania de Tabaco SA (COLTABACO.BO), the stock regulator said Thursday in a filing.

GWP CV seeks to purchase 1.604% of Coltabaco or 1,019,014 outstanding shares through a public tender offer, the company had said Wednesday in a filing to the country's financial regulator.

GWP CV offered to pay COP11,100 a share, the price the stock closed the last time it traded on April 24.

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• Reynolds, BAT Win Second Dismissal of Cigarette Smuggling Case 

An appeals court for a second time dismissed lawsuits that accused Reynolds American Inc. and British American Tobacco Plc of smuggling cigarettes to avoid paying taxes and customs duties.

The ruling by the 2nd U.S. Court of Appeals in New York rejected separate lawsuits by the European Union and by 25 departments of the nation of Colombia, which are equivalent to U.S. states. The European Union sued R.J. Reynolds, a unit of Reynolds American. The Colombian suit names British American, the world's second-largest cigarette maker.

The court first dismissed the suits last year, only to have the U.S. Supreme Court ask it reconsider. Today, the appeals court again cited the so-called revenue rule, a U.S. legal principle that bars suits by foreign governments seeking to collect unpaid taxes.

``When a foreign nation appears as a plaintiff in our courts seeking enforcement of its revenue laws, the judiciary risks being drawn into issues and disputes of foreign relations policy that are assigned to -- and better handled by -- the political branches of government,'' the court wrote.

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When a foreign nation appears as a plaintiff in our courts seeking enforcement of its revenue laws, the judiciary risks being drawn into issues and disputes of foreign relations policy that are assigned to -- and better handled by -- the political branches of government.
2nd U.S. Court of Appeals in New York, in rejecting separate lawsuits by the European Union and by 25 departments of the nation of Colombia which accused B&W and RJR of smuggling cigarettes.

• Cigarette Smuggling Case Is Dismissed Again 

An appeals court for a second time dismissed lawsuits that accused Reynolds American Inc. and British American Tobacco of smuggling cigarettes to avoid taxes and customs duties.

The ruling by the 2nd U.S. Court of Appeals in New York rejected separate lawsuits by the European Union and by 25 departments of Colombia . . . .

The court first dismissed the suits last year, only to have the U.S. Supreme Court ask it to reconsider. The appeals court again cited the revenue rule, a U.S. legal principle that bars suits by foreign governments seeking to collect unpaid taxes.

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• EDITORIAL: The Dark Side of the Marlboro World 

[Translated from Spanish by Suzanne Lazarus]

A fundamental failure of the U.S. Supreme Court of Justice opened the doors last week for the Colombian departments and the National Government to try in American courts the damages caused by three multinational cigarette manufacturers: Philip Morris, RJR Nabisco and British American Tobacco, for promoting or tolerating for many years the smuggling of their cigarettes into Colombia and for evading taxes on these cigarettes.

The court's decision is the latest episode in a trial which was begun by departments of the American justice system in 2000, to which the National Government was later added to bring charges for the laundering of assets. The basis of this was the argument that smuggling is a mechanism used by some drug traffickers to launder illegal funds. Due to a set of partial reversals in lower courts--even though the battle has not been won--the court's decision raises the hopes that the Colombian claims will be effective. . . .

In the meantime, this will send a critical message to the multinationals that they must compete honestly and, above all, take special care in avoiding criminal conduct. . . .

It is intolerable that cigarettes are distributed as gifts to youth in shopping centers, bars and restaurants to get them hooked on the vice. Moreover, it is inexplicable that the country has not signed and ratified the Framework Convention on Tobacco Control or created legislation to prohibit and sanction the sale to and use by minors. . . .

Total annual consumption is 21 billion cigarettes, and the effect on public health is enormous: in just this last year, cigarettes killed 25,000 people. For this reason, the State should act without delay to stop this.

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• R.J. Reynolds Faces New U.S. Hearing in EU Case 

The U.S. Supreme Court breathed new life Monday into a European Union lawsuit that accuses R.J. Reynolds Co. of smuggling cigarettes to avoid paying potentially billions of dollars in taxes, fees and customs duties.

The justices, citing their decision last week in a case raising similar issues, on Monday told a federal appeals court to revisit its conclusion that U.S. judges lack jurisdiction to consider the EU claims.

The justices also told the lower court to reconsider a related bid by 25 Colombian departments, equivalent to U.S. states, to sue units of British American Tobacco and other cigarette makers.

R.J. Reynolds spokesman Seth Moskowitz said the appeals court "should uphold its prior conclusion because that conclusion is consistent with the reasoning the Supreme Court used in the case it cites." . . .

The Colombian complaint says tobacco companies, particularly BAT and its former Brown & Williamson unit, ran a similar system to sneak cigarettes into that country. BAT last year sold Brown & Williamson to Reynolds American Inc., the Winston-Salem, N.C.-based parent of R.J. Reynolds Tobacco.

In throwing out the EU and Colombian lawsuits, the New York-based U.S. 2nd Circuit Court of Appeals pointed to the so-called revenue rule

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• Philip Morris International Inc. Announces Successful Public Tender Offer for Coltabaco S.A. 

GWP C.V., an affiliate of Philip Morris International Inc. (PMI), acquired 96.65% of the outstanding shares of Compania Colombiana de Tabaco S.A. ("COLTABACO") in a Public Tender Offer completed today.

The price offered per share was COP 11,398.13 (US $4.878817). GWP has purchased 96.65% for a value of COP 700.007 billion (US $299.6 million). The offer valued 100% of Coltabaco shares at COP 724.237 billion (US $310 million).

"Our investment in COLTABACO is a great opportunity to significantly expand our business in Colombia and in Latin America," said Andre Calantzopoulos, President and Chief Executive Officer of PMI.

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• UPDATE 2-Philip Morris unit buys Colombia co. for $300 mln 

A Dutch unit of Philip Morris has bought 96.65 percent of Colombia's biggest cigarette manufacturer, Coltabaco (CCT.CN) , for $299.6 million, the Colombian Stock Exchange said on Monday.

Top shareholders in Coltabaco -- the largest Latin American cigarette maker not controlled by Philip Morris or its competitor British American Tobacco (BATS.L) -- had recommended acceptance of the public offer, which was announced last August.

Philip Morris, controlled by Altria Inc. (MO.N) , is seeking to grow in developing countries. The company is also bidding to buy Indonesian tobacco company PT Hanjaya Mandala Sampoerna Tbk (HMSP.JK) for $5 billion.

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• Colombia Regulator OKs Philip Morris Unit's Coltabaco Bid 

Colombia's securities regulator late Thursday approved the sale of Compania Colombiana de Tabaco (COLTABACO.BO) to GWP CV, a Dutch unit of Philip Morris International.

GWP CV plans to launch a public tender offer for up to 100% of Coltabaco's stock worth a maximum of about $314 million. GWP CV will pay a maximum price per share of $4.88.

Luc Gerard, CEO of Philip Morris Colombia, told financial newspaper La Republica Friday that the public tender offer will take place on April 25.

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• Colombia approves $310 mln Philip Morris purchase 

The Colombian government on Tuesday approved the $310 million purchase of Coltabaco, the country's largest cigarette maker, by U.S. tobacco giant Philip Morris.

"The transaction will not cause problems for competition," the Industry and Trade Superintendency said in a news release.

Netherlands-based Philip Morris International Inc unit GWP CV last year offered to pay $4.88 a share for up to 100 percent of the 63.5 million shares outstanding, giving a potential value of $310 million.

Philip Morris, which is controlled by Altria Group Inc. , already has a big presence in Colombia with its Marlboro brand. Altria also controls top U.S. food maker Kraft Foods Inc.

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• UPDATE 1-Philip Morris unit offers to buy Colombia cigarette co 

A Dutch unit of U.S. tobacco giant Philip Morris is offering to buy Colombia's largest cigarette maker, Compania Colombiana de Tabaco (Coltabaco) CCT.CN , the Colombian company said on Tuesday.

The terms of the deal call for a payment of $4.88 a share for up to 100 percent of the 63.5 million shares outstanding, giving a potential value of $310 million.

The owners of 51.8 percent of Coltabaco shares have agreed to sell them in a public offer to Netherlands-based Philip Morris International Inc unit GWP CV, Coltabaco said in a letter printed on the Colombian Securities Superintendency website

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• Colombian newspaper delivers free cigarettes 

One of Colombia's most respected daily newspapers is delivering free cigarettes along with children's games in its bumper Sunday edition, causing alarm among anti-tobacco campaigners that the cigarettes will fall directly into the hands of children.

El Espectador, the paper with the second highest circulation in the country, delivered a packet of 10 Premier cigarettes, produced by one of the largest Colombian tobacco firms, Protobaco, tucked between supplements in its 19 August edition.

"I was very surprised," said Dr Diego Rosselli, epidemiologist and anti-tobacco advocate at Bogota's Javeriana University. "My 4 year old daughter opened the door when the paper arrived. She was waiting for the game that comes with each Sunday edition. But instead of the game, she came to me holding out a packet of cigarettes." . .

Leonardo Rojas, El Espectador's director of sales, said that the paper had no qualms about carrying the promotion and had received no complaints. The paper was delivered in a sealed plastic bag exclusively to 70000 adult subscribers. The bag clearly indicated that there were free cigarettes inside.

"The subscriber is entirely responsible for the contents of the Sunday package. It's just the same as having the internet in your home. You are responsible for controlling how your children use it," Mr Rojas said.

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The subscriber is entirely responsible for the contents of the Sunday package. It's just the same as having the internet in your home. You are responsible for controlling how your children use it.
Leonardo Rojas, director of sales for El Espectador, one of Colombia's most respected daily newspapers, which is delivering free cigarettes along with children's games in its Sunday edition. Arie, S.

• Clarke dismisses US tobacco writ 

Kenneth Clarke has dismissed fresh allegations concerning his deputy chairmanship of British American Tobacco.

It was reported that the Tory leadership contender may be brought before a US court to face allegations that BAT has been involved in organised crime.

A writ filed in Brooklyn, New York, by a group of Colombian states, accuses BAT and US firm Philip Morris of smuggling, price fixing and money laundering, Sunday Business said.

But Clarke supporters branded the revelation "nothing more than a publicity stunt" aimed at discrediting the former Chancellor.

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