Japan Tobacco International (JTI) has agreed to pay EU governments US$ 400 million over the next 15 years to combat the sale of illegal and counterfeit cigarettes.

On Friday, JTI has signed a cooperation agreement with the European Commission and 26 Member States of the EU to combat the contraband and counterfeit of cigarettes in the European Union. Under the agreement, which shields JTI from lawsuits stemming from past cigarette seizures in Europe, JTI committed to do more to prevent smuggling of "genuine Japan Tobacco cigarettes" in Europe and develop packaging that can be tracked and traced during distribution. The agreement provides for clear processes around seizures and close cooperation between relevant parties including JTI, the EC and the law enforcement authorities of the member states.
EU officials say cigarette makers worldwide are often lax in combating the illegal distribution and sales of their cigarettes. They see the cooperation agreement with Japan Tobacco International as a model for other cigarette companies. (ci/pi)