JTI executives stressed the importance of combating the illicit tobacco trade and promoting smart regulation. With 11% of the global illicit tobacco trade. Greece has reduced its share of the illicit market from 30% to 20% through public-private partnerships. JTI calls for regulatory frameworks to evolve to promote innovative products.
Key points:
1. According to the JTI, illicit tobacco trade accounts for 11% of the global tobacco trade, resulting in a loss of public revenue. In Greece, illegal trade costs the state about 600 million euros a year.
2. JTI signed a Memorandum of cooperation with AADE and collaborated with DAOE to launch an awareness campaign against illicit tobacco trade as a successful example of a public-private partnership.
3. The JTI stressed that regulation should promote innovation rather than hinder development, and called for the regulatory framework to be updated with the flexible regulatory model of the OECD to promote the development and application of a new generation of innovative products.
JTI: Proportion of illicit tobacco market in Greece decreases
Lucine Ovumyan, senior vice president of corporate affairs and communications at JTI. Recently discussed the importance of combating the illicit tobacco trade and scientific regulation at the Delphi Forum X.
Ovmyan stressed that the illicit tobacco trade is a major global problem, accounting for 11% of the total global tobacco trade. She noted that if the problem could be effectively combated, public revenues could increase by nearly 50 billion euros a year. In Greece, illegal trade costs the state about 600 million euros a year. However, thanks to the collaboration between state departments, relevant authorities and industry. The proportion of illegal markets in Greece has decreased from about 30% in 2022 to about 20% today.
Ovmyan praised JTI for its cooperation with the Greek Public Administration Authority and the co-signing of a memorandum of cooperation in 2023. Cooperation with the newly established Greek Federal Bureau of Investigation (DAOE) has also yielded significant results. She highlighted JTI’s collaboration with DAOE on an information campaign against the illicit tobacco trade as a successful example of public-private collaboration.
Regulation and innovation are the way forward
In addition. Ovmyan pointed out that proper regulation can set boundaries, protect society and foster innovation. Regulation, she stressed, should shape the future, not bind it.
Citing tobacco and nicotine products as examples. She highlighted JTI’s heavy investment in innovative new-generation products that have the potential to reduce the health risks associated with traditional smoking. Consumers should be allowed to use these products, she said, and companies should be encouraged to make continuous improvements and upgrades.
She concluded that “The regulatory framework needs to be constantly updated”. Referring to the flexible regulatory model of the Organisation for Economic Co-operation and Development (OECD). Saying that regulations should also evolve with scientific and technological progress. Therefore, she stressed that innovative nicotine products in the tobacco industry also need to be effectively regulated on the basis of scientific advances.
