Chapter 2

Historical background of international sanctions to tobacco marketing

2.1 International Sanctions
Alexndra 2009 stated that the implementation of economic sanctions has been an integral part of
most nation-states' foreign policy throughout history. Economic sanctions were used by nations
not only to influence external policies and national safety targets, but also to respond to domestic
political needs and economic pressures. Economic sanctions have been used for a variety of
purposes in ancient and early modern Europe but mainly as a subsidiary military policy
instrument during wartime periods.

When Pericles issued a megarian import embargo, Athens imposed economic sanctions in 432
BC on Greek city-states who refused to join the Athenian-led Delian League during the
Peloponnesian War. In the religious wars of the reform of Europe, states used trade sanctions and
other economic sanctions to force them to fulfill their obligations under the Treaty to protect
certain Christian minorities. In the late 19th century, economic sanctions generally took the form
of export controls on strategic supplies and blockades of targeted countries (Medlicott, 1952, 9).

International sanctions are political and economic decisions that form part of the diplomatic
efforts of the countries, multilateral or regional organizations, either to protect national security
interests or international law, against threats to international peace and security. International
sanctions International sanctions Gary & Haufer (2007). In principle, these decisions involve
temporary imposition, when motivating safety concerns are no longer applicable, of economic,
trade, diplomatic, cultural or other restrictions, or of no new threats.

Under Chapter VII of the UN Charter the international community has only a mandate to apply
sanctions to the UN Security Council (Article 41), which must be observed by all UN member
states (Article 2,2). They serve as the most powerful peaceful means for the international
community to avoid or resolve threats to international peace and security. The use of military
force is not part of the penalties. However, if sanctions do not lead to a diplomatic conflict
resolution, the Security Council may authorize the use of force separately pursuant to Article 42.
The unilateral penalties imposed by each country to advance their strategic interests should not
be mistaken for UN sanctions Carish Corish (2017). The measures applied under unilateral
sanctions can range from coercive diplomatic efforts to economic warfare to preludes to war,
usually intended as a strong economic constraint. Various kinds of penalties exist.

Economic sanctions – generally a trade ban which may be restricted to certain areas such as
armaments (e.g. food and medicine) or, with certain exceptions, Haidar, Haidar (2015) The
reduction or removal of diplomatic relations, such as embassies, is the responsibility of
diplomatic sanctions, Since the United Nations Declaration on the Human Environment,
international environmental efforts have been steadily increased since military sanction –
military intervention, sports sanctions – preventing one country's people and teams from
competing in international events and environmental sanctions

2.2 Tobacco Market/trading

Shafer et al. (2015) on the ITC Research Paper immaculate the emergence of ITCs, which set the
role of governments to ensure conditions for human health and well-being that are recognized as
a central human right.. Instead, international trade agreements make health and human rights a
priority for corporations. International trade agreements threaten existing policies on tobacco
control and limit the possibility of new controls. Many tobacco controls advocate in signatory
countries, particularly developing countries, do not recognize this situation.

Recent agreements on the removal of different trade constraints, including on tobacco, have
expanded beyond just international goods movement to include internal rules on tobacco
distribution and intellectual property laws governing advertising and labelling. Our analysis
shows that trade agreements protect the tobacco industry, a deadly business itself, and erode the
fundamental principles of human rights and contribute to poor health. The tobacco industry used
commercial policy to break down effective obstacles to imported tobacco. Trade negotiations
offer the tobacco industry an unjustified opportunity to pursue their interests without public
scrutiny. Trade agreements provide the industry with additional instruments to hinder both
developed and developing countries' control policies and at all levels. The healthcare community
must help reverse these trends and promote further public health protection measures.
Overall, the use of tobacco is expected to kill more than four million people in 2005, a toll
expected to increase to 10 million by 2030 Shafer et al. (2015). 70% of deaths in low- and
middle-income nations are expected to put a major strain on these health systems. Worldwide,
tobacco use is more prevalent among the poor, the uneducated, and those least informed about
the effects of tobacco use.

Education, the right to health and protection from harm are also part of the wide range of rights
to human beings. International trade agreements establish and enforce specific economic
relations between countries. This emphasizes companies' rights over health and human rights.
Some argue that this approach will promote health and well-being of people in the long term by
eliminating regulatory limitations on company activities and thus generating economic growth.
The argument is that greater personal freedom to consume a large variety of products is part of
political freedom and thus promotes human rights. Griswold, Griswold (2005). From this point
of view, government policies and actions must be preserved that protect populations against life-
threatening prevention risks. Trade agreements typically recognize the rights of nations to protect
national security and, for example, to control air space. Many control proponents believe that
tobacco should not be treated as an ordinary product but as a dangerous substance. As trade
agreements encourage the use of tobacco and protect the tobacco industry, they call into question
human rights and contribute to the poor health.

From this point of view, government policies and actions must be preserved that protect
populations against life-threatening prevention risks. Trade agreements typically recognize the
rights of nations to protect national security and, for example, to control air space. Many control
proponents believe that tobacco should not be treated as an ordinary product but as a dangerous
substance. As trade agreements encourage the use of tobacco and protect the tobacco industry,
they call into question human rights and contribute to the poor health.

2.3 Tobacco International Trade Sanctions

Prakit et al (1990) reported that the decision that this should be a smoke-free meeting was made
at the XI Asia Pacific Congress on Chest Diseases, held in Bangkok, in November 1989. The
participants and over 50 pharmaceutical companies presenting their products co-operated fully
with this announcement. By coincidence, in Bangkok's newspaper in English on November 20,
the US continued to press Thailand to meet the request to allow American cigarettes to be
imported. The reason for this was that, through its Trade Representative Office (USTR), the
United States Cigarette Export Association (USCEA) requested that the Government of the
United States initiate an investigation into alleged "unfair trade practices" under Section 301 of
the Trade Act (1974), because Thailand banned imports of external cigarettes. If by May 1990
there is no settlement on the waiver of the importation prohibition or the repeal of the Thai law
prohibiting all forms of advertising for cigarettes, Thailand will have to face the punitive US
commercial retaliation.

2.4 Enforcement of trade rules/sanctions

The enforcement mechanisms are strong and effective in the World Trade Organization (WTO).
When countries accuse each other of violating commercial rules, a court of commercial
professionals appointed to impose substantial financial penalties, commercial sanctions and
product boycotts on a losing party shall be able to adjudicate disputes. The procedure is publicly
closed and cannot be appealed outside the system of the commercial tribunal.

Trade bargains have previously sought confidentiality to protect sensitive pricing information
and other negotiation positions. Increased transparency of the procedures has been called for by
politicians because agreements are increasingly concerned with critical social policies.

2.5 Past trade disputes and tobacco trading

Tobacco control measures were endangered, chilled and reversed in past trade disputes: The
United States Cigarette Export Association (USCEA) was successful in implementing the 1984
amendments to Section 301 of the Trade Act of 1974, which sought the cooperation of the
Executive Branch of the United States in threatening trade sanctions against Asian countries,
with quotas, high rates of charity, high Retail Taxes and restrictions on tobacco advertising and
distribution (1989). The challenge was particularly damaging for young people and women
whose historic cigarette smoking rates were low. The US Administrative Board of
Accountability Study showed that smoking among male adolescents rose from 18.4% to 29.8%
in a single year and quintupled among adolescents from 1.6% to 8.7%.

Waren (2004) indicated that, while the panel recognized that chemicals and other additive
substances may have been harmer in US cigarettes as compared to Thai cigarettes, Thailand's
limitation on cigarette imports was discovered in 1990, in violation and unjustified. It led Canada
to withdraw its attempt to make legislation on 'plain' cigarette packaging when, in 1994, Philip
Morris threatened to start a trade dispute calling for millions of people to 'expropriate' its
intellectual property [that is, its trademark] if Canada pursued its plans. In order to move forward
with a proposal to ban misleading descriptor ("light." Philip Morris threatened Canada with a
challenge under NAFTA. The European prohibition against these descriptors was rejected by
Japan Tobacco as the infringement of trademark laws and the European Court of Justice was
joined by a case filed by BAT and Imperial Tobacco. The Court rejected JT’s claim, but
specified that the decision was not a determination of the TRIPS legality related to the ban on
tobacco descriptors.

2.6 Economic International sanctions on tobacco market

Economic penalties for the targeted state, group or individual are trade and financial sanctions
imposed by one or more countries. Lin Tom (2016), challenge Economic sanctions may also be
imposed on a range of political, military, and social issues not necessarily because of economic
factors. For domestic and international purposes, economic sanctions may be used. Economic
sanctions are generally aimed at establishing good relations between the country that applies
sanctions and the recipient of them. However, the effectiveness of the penalties is debatable and
the consequences can be unintended. Suk, Suk, Suk (2018)

Economic sanctions may include different forms of trade barriers, tariffs and financial
transaction restrictions Haidar, Haidar (2015) An embargo is similar, but usually implies a
stricter punishment with a direct flight no-fly area or naval blockade. The ban, in the sense that it
is partly or entirely banning trade and commerce with a particular country/state or group of
nations, is a sanction (from the Spanish embargo, meaning obstructment, etc., generally speaking
trade ban on trading terminology and literalmente "distraction" in legal terms).  Sanctions are
considered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a
given national-interest result from the country on which it is imposed. Sanctions are generally
considered legal barriers to trade, not to be confused with blockades, which are often considered
to be acts of war Hauber etal (2008). Sanctions may include restriction or prohibition of exports
or imports, the introduction of quotas for quantity, special charges, taxes, the prohibition of
freight or transit vehicles and the freezing or seizure of freight, assets, bank accounts, and
restriction in cold-war transport of specific technologies or goods such as the CoCom. A closed
economy or self-sufficiency often develops in a heavily embargoed area as a reaction to
sanctions. Sanctions are therefore proportionately effective with the extent and extent of
international participation. Sanctions may provide some countries with an opportunity to develop
their autonomy faster. However, in different economic situations the embargo may be necessary
for the State to impose the embargo, therefore not necessarily in the event of war.

2.7 Economic International sanctions within the African region.

Economically, South Rhodesia developed a regionally limited economy based on the production
of a couple of primary products, including chromium and tobacco. Therefore, the economic cycle
was vulnerable. The deep recession in the 1930s led to a boom after the war. Between 1945 and
1970, this boom led to the influx of around 200,000 Whites, which brought the white people to
307,000. Many were British working-class immigrants, others from the Belgian Congo, Kenya,
Tanzania, and later Angola, Mozambique. They created a relatively balanced economy that
turned backwoods farming into a giant industrial producer who spawned a strong industry, iron
and steel industries, and contemporary mining enterprises. Excluding migration of skilled
workers, these economic successes were due little to foreign help.

For a decade after the declaration of its independence, the economy of Rhodesia sustained
international sanctions which worsened when more southern African states proclaimed
independence and major domination, as well as the destruction of the Bush war in Rhodesia.
Rhodesia received no official recognition from any state, after the declaration of independence,
and in fact for the entire duration of its existence, even if it maintained diplomatic relations with
South Africa, then under apartheid. In order to keep its fragile positions in other nations, South
Africa did not recognize Rhodesia, but often assisted the Rhodesian State. Portugal maintained
informal relations until the Carnation Revolution of 1974. The day following the declaration of
independence, the United Nations Security Council passed a resolution (S/RES/216) calling upon
all states not to accord Rhodesia recognition, and to refrain from any assistance. The Security
Council also imposed selective mandatory economic sanctions, which were later made
comprehensive.

Malawi Neros Time (2017) said that Israel, South Africa, Portugal and Iran have not met
Rhodesia economic sanctions (2017). The US violated them to buy Rhodesian chromium ore,
despite its vote in favour of the UNSC sanctions. Ottawe (1978) Zambia's President Kenneth
Kaunda has also accused Western oil companies of breaking sanctions and selling oil to
Rhodesia (2016)

2.8 Effectiveness of economic sanctions

Hufbauer, Schott and Elliot (2008) argue that the regime change is the most common economic
sanctions foreign policy target and accounts for just over 39 percent of their tax cases. Hufbauer
et al. (2008) reported that 34% of the cases were successful in their studies. In his study, Robert
A. Pape said that only five of his 40 so-called successes stood up, reducing the success rate to
4%. Economic sanctions scholars have also widely debated the success of sanctions as a form of
measuring efficiency. Success of a single sanctions-resolution does not automatically lead to
effectiveness, unless the stated objective of the sanction’s regime is clearly identified and
reached.

According to a study by Neuenkirc and Neumeier (2015) economic sanctions by reducing GDP
growth by more than 2 percent per year had a statistically considerable impact on the target
country's economy. The study also concluded that, typically for 10 years, the negative impacts
amount to a total per capita GDP drops of 25.5 per cent in the target country. Sanctions imposed
on an opponent will also have a certain impact on the economy of the imposing country. If
importation restrictions are enacted, consumers can have limited choice of goods in the imposing
country. Where export restrictions have been imposed or where sanctions prohibit trading with
the target country by companies in the imposing country, the taxing country can lose Griswold
countries' market and investment opportunities (2010).

Sanction’s criticisms, such as Belgian lawyer Marc Bossuyt, argue, however, that the extent to
which that affects political results is disputed in non-democratic regimes, because such systems
do not by definition react so strongly to the popular will of the UN; (2010) (2010)

British diplomat Jeremy Greenstock suggests that sanctions are popular not because they are
known to be efficient, but because "they have no more words and military action to press a
government." The effectiveness of penalties and the size of veto operators in a government have
been strongly linked. Veto players represent individual or collective actors, for example -
coalition parties, or legislative control over presidential powers whose agreement is required in
order to alter the status quo. If a country is sanctioned, it can attempt to lessen it by changing its
economic policy. The number of constraints faced by the government when trying to change
status quo policies and the larger the size of veto players, determines the more difficult it is to
support new policies, which enhances the effectiveness and effectiveness of sanctions, Peksen
and al (2017)
References

 "Malawi: Heroes or Neros? – TIME". Content.time.com. 14 April 1967. Archived  from the

original on 13 May 2016.

A Strategic Understanding of UN Economic Sanctions: International Relations, Law, and

Development, Golnoosh Hakimdavar,
American Medical Association. Impact of US tobacco exports on the worldwide smoking
epidemic. Report of the Council on Scientific Affairs. June
1989. http://tobaccodocuments.org/ti/TIMN0016471-6513.html?pattern-%22trade+agreements
%22.

Callard Cynthia, Collishaw Neil, Swenarchuk Michelle. An introduction to international trade

agreements and their impact on public measures to reduce tobacco use. Physicians for a Smoke-
Free Canada/Commonwealth Medical Association. April 2001. http://www.smoke-
free.ca/pdf_1/Trade&Tobacco-April%202000.pd

General Accounting Office. Trade and health issues: dichotomy between U.S. tobacco export
policy and anti-smoking initiatives. GAO/NSAID-90-190. May 1990.
Griswold D T. Human rights: Globalization and human rights. AWorldConnected.Org, Institute
for Humane Studies, George Mason
University. http://www.aworldconnected.com/article.php/565.html

Griswold, Daniel (2000-11-27). "Going Alone on Economic Sanctions Hurts U.S. More than
Foes". Cato.org. Archived from the original on 2011-09-23. Retrieved 2015-03-30.
Haidar, J.I., 2015."Sanctions and Exports Deflection: Evidence from Iran," Paris School of
Economics, University of Paris 1 Pantheon Sorbonne, Mimeo

International Federation for Human Rights. The World Trade Organization and Human Rights.
FIDH Position Paper. www.fidh.org (Accessed February 14, 2004).

Lee, Yong Suk (2018). "Lee, Yong Suk, 2018. "International isolation and regional inequality:
Evidence from sanctions on North Korea," Journal of Urban Economics". Journal of Urban
Economics. 103 (C): 34–51. doi:10.1016/j.jue.2017.11.002. S2CID 158561662

Mueller, John; Mueller, Karl (1999). "Sanctions of Mass Destruction". Foreign Affairs. 78  (3):

43–53.  doi:10.2307/20049279. JSTOR 20049279.

Mueller, John; Mueller, Karl (1999). "Sanctions of Mass Destruction". Foreign Affairs. 78 (3):

43–53. doi:10.2307/20049279. JSTOR 20049279.

Neuenkirch, Matthias; Neumeier, Florian (2015-12-01). "The impact of UN and US economic

sanctions on GDP growth" (PDF). European Journal of Political Economy. 40: 110–
125. doi:10.1016/j.ejpoleco.2015.09.001. ISSN 0176-2680.
Southern Rhodesia. Ministry of Information, Immigration, and Tourism (1964). Report of the
Secretary for Information, Immigration, and Tourism. Ministry of Information, Immigration, and
Tourism.

United Nations High Commission for Human Rights. International Covenant on Economic,
Social, and Cultural Rights (ICESCR), Adopted and opened for signature, ratification and
accession by General Assembly resolution 2200A (XXI) of 16 December 1966 entry into force 3
January 1976, in accordance with article 27. Office of the High Commissioner for Human
Rights, United Nations. http://www.unhchr.ch/html/menu3/b/a_cescr.htm.

Waren W T. Trade Agreement Trade-offs. International trade tribunals challenge state law and
policy. State Legislatures,
July/August2004. http://www.ncsl.org/programs/pubs/SLmag/2004/04SLJulAug_Trade.htm.

World Health Organization. Tobacco and the Rights of the Child. WHO/NMH/TFI/01.3 World
Health Organization, Geneva.

World Trade Organization. Agreement on the Application of Sanitary and Phytosanitary

Measures. www.wto.org p70, 72