CHAMBER OF COMMERCE

OF THE

UNITED STATES OF AMERICA

MYRON

A. BRILLIANT

EXECUTIVE VICE PRESIDENT AND HEAD OF INTERNATIONAL AFFAIRS

1615 H STREET, N.W. WASFIINGTON, DC 20062-2000 202/463-5489

202/822-2470

FAX

February 5, 2014

mbrillia@uschamber.com

His Excellency Igor Corman President of the Parliament of the Republic of Moldova Parliament of the Republic of Moldova 162, Bulevardul Stefan ccl Mare si Sfint Chiinu MD 2004 Republic of Moldova

Dear President Corman: The U.S. Chamber of Commerce is the worlds largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region. Our member companies are significantly invested in Moldova, and we place a high priority on our trade and investment relationship with your country. In order to continue to cultivate that robust trade and investment relationship, the decisions made by public policymakers must have a sound basis in science and reflect global best practice. In December of last year, the U.S. Chamber wrote to Prime Minister Leanc concerning the public consultation on proposed amendments to the Draft Tobacco Control Law 1 (the Draft Law) (please see attached the copy of the letter). t the time of the letter, we were concerned about the excessive size of graphic health warnings under consideration. We expressed our concern about the impact such a measure would have on the ability of brand owners to use their legally sanctioned trademarks, and the lack of evidence that the large warnings would have on reducing or discouraging tobacco use, thus calling into question Moldovas commitment to observing its international trade agreement obligations.
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Despite the concerns raised by various Ministries in Moldova, the Government has proposed additional amendments that are even more restrictive. The most extreme measures include standardized packaging of products, a ban on menthol, a ban on slim cigarettes, a point of sale display ban, and other restrictions on marketing, promotion and communication activities and smoking in public places. 2 This happened despite the requirement under
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H.E. Igor Corman February 4, 2014 Page Two

Moldovan law for the Ministry of Health to obtain a positive regulatory assessment 3 of the draft initiative by the Regulatory Working Group 4 led by the Ministry of Economy. The revised text was neither submitted for review to relevant stakeholders, nor did it receive a regulatory impact assessment as would be expected under proper procedures. Moreover, during the Government Sitting of December 17, 2013, the text of the Draft Law was approved on a conceptual basis without finalizing. 5 While the procedural anomalies presented by the most current set of amendments are concerning, we are deeply troubled by many of these proposals themselves. In 2010, we expressed our concerns regarding the proposed revision of the European Union Tobacco Products Directive, particularly with respect to the plain and standardized packaging provisions. I have attached a copy of the concerns we expressed at that time. We should note that the EU itself voted numerous times to reject a requirement for plain or standardized packaging of tobacco products as an excessive and unwarranted measure with unintended consequences, including facilitating illicit trade. Additionally, we understand that many of these proposed requirements far exceed Framework Convention on Tobacco Control requirements. While the U.S. Chamber supports the right of governments to issue scientificallyfounded regulations to protect public health, we do not believe these amendments are well founded in evidence. Given the importance of good regulatory practice and respect for the rule of law and transparency in government, we encourage the Parliament to carefully consider the concerns outlined in our comments and thoroughly evaluate the merits of the Governments proposed amendments themselves for their efficacy and impact on Moldovas international obligations. Thank you very much for your consideration of the Chambers views. Sin erely,

My on Brilliant Executive Vice President And I-lead of International Affairs

3

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I-I.E. Igor Corman February 4, 2014 Page Three

cc:

Honorable Mr. Andrian Candu, Deputy Chairman of the Parliament of the Republic of Moldo va 1-lonorable Mrs. Liliana Palihovici, Deputy Chairman of the Parliament of the Republic of Moldova Honorable Mr. Oleg Bodrug, Deputy Chairman of the Parliament of the Republic of Moldova