- #1
TheStatutoryApe
- 296
- 4
http://www.nytimes.com/2009/06/13/business/13tobacco.html?ref=politics
While the bill is well intentioned I think they are going to great lengths for a slim benefits and the greatest beneficiaries it would seem are going to be the major tobacco companies.
First of all it will make getting new tobacco products out an incredibly drawn out and expensive process. Smaller companies will not be able to compete with the big boys and companies like RJ Reynolds and Philip Morris will take even more of a lions share of the market. Philip Morris even supported the legislation.
Secondly, and perhaps most importantly, the legislation will ban flavoured tobaccos. Flavoured cigarettes are really the only major market for smaller tobacco companies. Kreteks (clove cigarettes) will also be banned which will completely hedge out competition from indonesian companies that make about one hundred million dollars in exports to the US. But the corporate protectionism doesn't stop there.
Menthol cigarettes, the biggest money making flavoured cigarette in the US, will be the only flavoured cigarettes exempted from the ban. This also happens to be a cigarette flavour most commonly preferred by African Americans and a big money maker for companies like Reynolds and Morris.
So the US government has passed legislation dubbing tobacco a dangerous and addictive substance requiring tight control while simultaneously setting up profit protections, and possibly market share boosts, for its biggest pushers.
The House moved quickly Friday to pass the Senate’s tobacco bill and send it to the White House, where President Obama promised to sign it.
Mr. Obama, who himself has struggled to quit smoking, said the measure would “protect our kids and improve our public health.” Appearing in the Rose Garden just moments after the House vote, he said the tobacco legislation was “a bill that truly defines changes in Washington” and one that “changes the way Washington works and who it works for.”
The law would for the first time give the Food and Drug Administration the authority to regulate tobacco products, which kill more than 400,000 people in this country each year, according to the Centers for Disease Control and Prevention.
cont...
While the bill is well intentioned I think they are going to great lengths for a slim benefits and the greatest beneficiaries it would seem are going to be the major tobacco companies.
First of all it will make getting new tobacco products out an incredibly drawn out and expensive process. Smaller companies will not be able to compete with the big boys and companies like RJ Reynolds and Philip Morris will take even more of a lions share of the market. Philip Morris even supported the legislation.
Secondly, and perhaps most importantly, the legislation will ban flavoured tobaccos. Flavoured cigarettes are really the only major market for smaller tobacco companies. Kreteks (clove cigarettes) will also be banned which will completely hedge out competition from indonesian companies that make about one hundred million dollars in exports to the US. But the corporate protectionism doesn't stop there.
Menthol cigarettes, the biggest money making flavoured cigarette in the US, will be the only flavoured cigarettes exempted from the ban. This also happens to be a cigarette flavour most commonly preferred by African Americans and a big money maker for companies like Reynolds and Morris.
So the US government has passed legislation dubbing tobacco a dangerous and addictive substance requiring tight control while simultaneously setting up profit protections, and possibly market share boosts, for its biggest pushers.