Business Association of Georgia
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Business Association of Georgia, Tobacco Tactics, updated 07 July 2023, accessed 27 April 2024.
Background
The Business Association of Georgia (BAG) was established in 2009, with a stated mission of improving the business environment in Georgia by “uniting the members, in close cooperation with the authorities, international and local partners”.1
As of 2022, members of BAG include around 100 holding companies, that represent over 600 businesses of varying sizes.1
Relationship with the tobacco industry
Membership
Philip Morris Georgia, a subsidy of Philip Morris International (PMI), became a member of BAG in 2017.2
Japan Tobacco International (JTI) became a member in 2021.23
COVID-19 donation
In 2020, Philip Morris Georgia made a donation of GEL 100,000 (UK£35,500) to a COVID-19 support fund established by BAG.4
- See the COVID-19 page for information on tobacco industry corporate social responsibility and targeted donations during the COVID-19 pandemic.
Activities
Lobbying to oppose regulations on heated tobacco products
A ban on tobacco advertising, promotion and sponsorship was introduced in Georgia in May 2018, and an outdoor display ban in September 2018.5
In September 2018, BAG submitted a legislative proposal to the Healthcare Committee of the Parliament requesting that heated tobacco products (HTPs) and other newer nicotine and tobacco products be subject to fewer regulations than conventional tobacco products.67 BAG also submitted the proposal to the Office of Business Ombudsman of Georgia.75 The Ombudsman’s office, which reportedly often has meetings and consultations with tobacco industry representatives,5 subsequently wrote a letter to Parliament supporting the proposal.8 However, the proposal was ultimately dismissed by Parliament.56
In January 2020, BAG submitted another legislative proposal requesting fewer regulations for HTPs.5910 During this time, BAG also published media reports which cited PMI’s HTP IQOS, as the reason for the request being made.11
The proposal stated:
“The essence of our proposal is that new tobacco products and heating tobacco, devices and accessories intended for their consumption should not be subject to the prohibitions provided by the current legislation relating to Internet and/or mail order retailing, direct personal communications, and informational materials”[translation].12
The proposal was again dismissed by Parliament in February 2020.5
In July 2020, when the U.S. Food and Drug Administration (FDA) authorised the marketing of IQOS,13 Legal Director of BAG, Nika Nanuashvili,14 criticised the Parliament of Georgia’s decisions not to accept BAG’s previous legislative proposals.15
In 2021, Nanuashvili contributed to a media report in which he echoed previous statements around product regulation. He also commented that smuggling rates of traditional tobacco products are high, citing the high cost of tobacco as the cause.16
Plain packaging
Georgia mandated a law to introduce plain packaging to tobacco products, including HTPs, in May 2017. However, its implementation has been postponed on several occasions,17 with regulations now due to enter into force in 2024.18
In 2021 BAG submitted another legislative proposal regarding regulations for newer products.19 Adding to previous submissions, this proposal argued against the introduction of plain packaging for HTPs. It also recommended that, for all tobacco products, new packaging regulations be postponed to 2025, and stated “Standardized packaging has failed in all markets where it has been implemented and failed to achieve its intended goals”[translation].20
The proposal also stated:
“since 2017, the reform of the legislation regulating tobacco products began in the country, and on this painful path, the most difficult, radical regulations were selected… Georgia’s legislation, which is significantly stricter than EU countries, especially in terms of marketing and standardized packaging, will inevitably lead to further narrowing of organized businesses in the relevant market and indirect encouragement of illegal imports”[translation].20
However, the proposal was again refused by Parliament.21
After rejection of the proposal, Nanuashvili stated in a media report that plain packaging would have a negative impact on the sale of lesser-known brands and argued that plain packaging could result in an increase in illicit trade.22
See also Industry Arguments Against Plain Packaging
Relevant Link
- Business Association of Georgia website
TobaccoTactics Resources
