Jump to full article: Washington Times, 2001-04-29
Intro: Guatemala, Nicaragua and Ecuador, the three Latin American countries involved thus far, may well have been conned by slick American trial lawyers looking to line their own pockets at the expense of gullible clients.
The U.S. lawyers reportedly have assured the foreign governments they have courted that the U.S. tobacco companies would settle out-of-court at the first hint of a lawsuit. Lawyers for tobacco companies, however, have been adamant that their settlement with the 46 states here should not be taken in any way as a sneak preview of their reaction to lawsuits by foreign governments.
All three of the nations that sued and lost are heavily involved in the cigarette trade within their own borders. . .
Whatever short-term benefits the three Latin American countries might have obtained from successful lawsuits likely would have been offset by the loss of desperately needed foreign investment. U.S. companies, not to mention their European and Japanese counterparts, are seeking to invest in countries that have stable and predictable business climates. The feeling is that if a nation is willing to sue one U.S. industry on such flimsy grounds it obviously is willing to sue others as well. With a new administration that has a decidedly more pro-business attitude than its predecessor, such lawsuits could trigger economic repercussions in foreign aid and trade relations as well.
The governments of Panama and Venezuela still have lawsuits pending against American tobacco companies in U.S. courts. They should ponder the fate of Nicaragua, Guatemala and Ecuador and the long-term economic repercussions as well before they proceed with such ill-advised legal actions.
Jump to full article » |