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PRESIDENT FELIPE CALDERON SCRAPS AGREEMENT WITH TOBACCO COMPANIES NEGOTIATED BY PREDECESSOR; PROMISES MORE VIGOROUS ANTI-SMOKING EFFORT.

Article Excerpt
President Felipe Calderon has decided to scrap a pact with Mexican tobacco companies that was originally negotiated by former President Vicente Fox's administration. Under the accord, the government received 1 peso (US$0.09) from the tobacco companies for each pack of cigarettes sold. The funds from the cigarette sales were to be used for anti-smoking campaigns and treatment of tobacco-related illnesses. The tobacco companies entered into the agreement on condition that the government would not promote an increase in taxes on tobacco during the life of the agreement. The deal attracted strong criticism from health advocates, who argued that the arrangement gave the tobacco companies control of the government's anti-smoking policies, and the amount of funds donated by the tobacco industry was not sufficient to compensate for the economic costs of smoking (see SourceMex, 2005-11-09)....