INTERNATIONAL. The long-running threat to duty free tobacco sales has been staved off – but industry lobbyists warned against complacency. A compromise was reached last week which means that signatory countries to the World Health Organizations (WHO) Framework Convention on Tobacco Control will not be obliged either to implement an outright ban on duty free tobacco or to place any further restrictions on sales or allowances. International Association of Airport Duty Free Stores lobbyist Jon Kent (IAADFS) described the development as “the most successful outcome possible from what has been a long and protracted negotiation process.”
The International Travel Retail Confederation said: “The final text maintains the status quo by not obligating Parties to undertake any specific action on duty free sales or allowances when implementing the Convention, even though the wording still includes “prohibiting” and “restricting”.” It added: “Discussions with representatives from both the EU Commission and some Member States during the negotiations in Geneva have confirmed that this final text will not lead to any further restrictions on third country duty free sales or import allowances within Europe.”
The ITRC warned that the global industry will need to closely monitor developments as the Convention is implemented at a national and regional level.
Comment: When the end came, it came quickly. The announcements were muted, perhaps to guard against industry complacency but in effect the end result is a triumph for the industry and its lobbyists. Much work has been done behind the scenes by the IAADFS and the ITRC, quietly effective “hard yards” which appear to have paid dividends. Good news for a travel retail industry that needs every fillip it can get at the moment.
