Written by Larry Waters Wednesday, 17 March 2010 18:44
The Pact Act passed the House of Representatives earlier today by a vote of 327 to 25. Big Media Response? Jim Abrams of the Associated Press opened his article with "Congress has moved to stamp out a multibillion-dollar tobacco trafficking industry that has enriched criminals and terrorists and made it easier for kids to buy cigarettes online.". His article goes down-hill from there repeating the propoganda and false claims of terrorism and smuggling Rep. Weiner based H.R.1676; The PACT or as Weiner cynically called it, the Prevent all Cigarette Trafficking Act.
The Seneca Nation released a press release earlier today which is much closer to the truth. Everyone at SnusCENTRAL is outraged at how New York in particular is taking out it's envy and outright hostility towards the 
Senecas. Perhaps if New York had lowered their tobacco taxes by half or more, those buying cigarettes and tobacco products at the Seneca reservation in upstate New York would have saved the two hour drive and purchased their tobacco locally. Maybe the huge increase in volume would have actually earned New York even more tax revenue with less crime.
Senator Herb Kohl (D-Wis), the Senate father of the PACT ACT said the ATF had six active tobacco smuggling investigations in 1998. In 2010 it has more than 400. Four Hundred? Senator, there are 45 MILLION cigarette smokers in the US in 2010. With FDA under the authority of The Tobacco Act doing everything it can to destroy any non-Big Pharma reduced harm tobacco alternatives, smokers will continue to smoke.
In today's economy with cigarette prices running as high as $12+ a pack after taxes, do you really think cash-strapped smokers will just sell their kidney's for cigarettes? Do you think the overwhelming majority who are nicotine-addicted are just going to quit smoking? Or are even capable of giving up nicotine without life-long withdrawal symptoms? It's not like all Americans lives are stress-free today thanks to Washington blunders and the drunken spending habits which leave us in The Great Recession.
Instead, your bill will foster a Black Market in cigarettes in particular the likes of which this nation has never seen. It will accomplish exactly the opposite of what PACT purports to combat: crime will increase; tobacco smuggling will sky-rocket; tobacco tax revenues will fall; violent crimes will increase at the Tobacco Smugglers jockey for territories. And the money needed to enforce PACT? You can't even imagine, gentlemen.
PACT makes tobacco 'smuggling' a felony offense now. There will be off-shore Internet sites where you will be able to buy Swedish snus and have it shipped unlabeled and untaxed via Swedish Post/US Mail. It has happened before and will happen again...but not at SnusCentral.com. Just remember that buying from any of these underground
websites makes YOU a tobacco smuggler, a terrorist, and a felon. If the package breaks open or tears in the mail....... jackboots from BATF will be 'visiting' you. Once PACT is signed by our nicotine-addicted hypocrite of a President, don't risk it, period. The BATF troops marching down the street may be coming for YOU.
Welcome to Amerika 2010 - By the Government; For the Government.
LARRY WATERS
Swedish Snus Ambassador to the United States
Reporting from the War Room for SnusCENTRAL.org
Seneca Leaders Call on President Obama to Veto Measure and honor Pledge to Protect Rights of Native Americans
CATTARAUGUS TERRITORY, N.Y., March 17 -- The Seneca Nation of Indians today denounced the U.S. House of Representatives approval of the PACT (Prevent All Cigarette Trafficking) Act as a blatant attack on Native American Treaty Rights.
If signed into law by President Obama, the PACT Act will bar Native American tobacco businesses from using the U.S. Postal Service for shipment of their products. Loss of that critical distribution channel will cripple the Seneca tobacco industry and result in the loss of more than 1,000 native and non-native jobs.
"This is a sucker punch to our federal treaty rights," said Seneca Nation President Barry E. Snyder Sr. "This is a direct assault on our economy and our people. And it will have a devastating ripple effect on the Western New York economy."
Snyder said it is now up to President Obama to "do the right thing" and veto the PACT Act when it reaches his desk.
"During his 2008 presidential campaign Obama promised to go beyond a government-to-government relationship with Native Americans to create a nation-to-nation relationship. In November we met with him as the first step in that effort. Now we call on him to honor his pledge by protecting our treaties," Snyder said. "We are looking to the president for true leadership in our battle to maintain federal treaty rights."
The Seneca have maintained that the PACT Act, which has been promoted as an anti-smoking measure aimed at keeping cigarettes out of the hands of under-age smokers, is really a push by big tobacco companies to squeeze out Native American competition and protect market share.
The Seneca Nation maintains the measure, which has attracted strong support and lobbying efforts from mainstream tobacco corporations, led by Philip Morris, is an overt attempt by big cigarette corporations to simply stomp out any market competition.
"Let's call this what it is...a victory for Philip Morris and other global tobacco companies to wipe out competition anyway they can. They put 40,000 cases of cigarettes into the hands of minors every year, that's more cigarettes than we sell in a year. This isn't a victory for health and anti-smoking efforts," Snyder said.
Snyder, General Counsel Robert Odawi Porter, Councillors JC Seneca and Brad John traveled to Washington, D.C. today for a final round of in-person lobbying before the House vote.
Meetings with Rep. Brian Higgins (D-Buffalo) and Chris Lee (R-Clarence) proved nonproductive, with both congressmen voting in favor of the measure.
"It is difficult to comprehend how our elected officials can vote for something that will kill more than 1,000 jobs. It's extremely disappointing," Snyder said.
JC Seneca, Co-Chairman of its Foreign Relations Committee (FRC), said the PACT Act's economic impact will be widespread.
"If this becomes law, more than 1,000 people will lose their jobs, those workers' families will have less money to spend at businesses both on and off the reservation," Seneca said. "This attempt by Congress to return us to the days of want, squalor and dependency will not succeed. We'll find ways to weather this economic storm and keep fighting for our future."
In addition to wiping out more than 1,000 Western New York jobs, an end to U.S. Post Office shipments of Native American tobacco to phone and online purchasers, will result in significant revenue losses to the Postal Service. Seneca tobacco sellers estimate they spend more than $250 million a year to mail their products to buyers.
"It's ironic that the federal government is willing to forego more than a quarter of a billion dollars in revenues when the Postal Service is closing post offices and cutting service because of financial problems," Seneca said.
Seneca tobacco shipments dominate business at several small post offices on and close to the Seneca Cattaraugus and Allegany Territories, including offices in Irving, Silver Creek, Versailles and Lawtons.
Richard Nephew, Seneca Council Chairman and Co-Chairman of the FRC, said the House vote marks a "win for big tobacco and sad day for Native Americans."
"Big tobacco is losing ground to cheaper brands sold in Indian County and now all the states have the ability to regulate the competition out of existence. We call on President Obama, who was adopted by the Crow Nation as "Black Eagle," to consult with Native Nation leaders as he reviews this legislation," Nephew said.
The Nation's Foreign Relations Committee (FRC) has focused considerable attention Tobacco trade is a key component of the Seneca Nation economy. The Nation estimates enforcement of the PACT Act could result in up to a 65 percent loss in Import/Export revenue which it uses to fund health and education programs.
The Nation has a state-of-the-art stamping and enforcement mechanism that ensures compliance with a rigorous set of internal regulations, including retailer authorization, minimum pricing and a ban on sale to minors. The Nation works in close partnership with the Federal Bureau of Alcohol, Tobacco and Firearms Enforcement (ATF).
Media Contact:
Sharon Linstedt/Susan Asquith
Travers Collins & Company
sasquith@traverscollins.com
slinstedt@traverscollins.com
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chadizzy1 makes this comment
Thursday, 18 March 2010
Larry, I couldn't agree more.
It doesn't matter how this affects anyone, because the most powerful man in the world can get what he wants. He doesn't care who this is going to hurt or how many jobs it will cost. The only "hope" and "change" he brings is the hope that we can vote someone else in to change what he is attempting to do to hurt this country even worse. He only hopes to change things in his favor, and screw anyone and everyone who gets in his way.
This all boils down to money. That's all it's about. It's not about "for the children", "tobacco smuggling", or "stopping terrorism", despite throwing around those fancy words until they're blue in the face. It's all about the tax revenue for the government. And the money PM and RJR padded the money with of all those involved with this atrocity in order to eliminate their competition (despite the fact that this WILL cost jobs in a down economy, which is never a good thing) is the icing on the cake. I wonder how much money they threw at Senators and Representatives to make this happen? Who knows, they'll never admit it.
It will be interesting to see what the Seneca tribe will be doing to oppose this. I support their efforts and plan to involve myself in any way possible. I will oppose PACT even further, and will not stand for something like this. I still believe in America, I still believe in freedom - and though my beliefs have been shaken by the people we elected to stand up for us instead standing up for the almight dollar - I still have hope that this someday, some how might possibly change. Only time will tell. We can still get snus for now....but who knows how long THAT will be a reality.
Andrew Romeo makes this comment
Thursday, 18 March 2010
The act has no impact on competition. The Senecas sell loads of name brand cigarettes. Big Tobacco will actually feel a pinch in volumes/revenues from PACT as it will cause consumers to down-trade to cheaper taxed brands in their own states. Bricks and mortar retail and distribution companies in these states will see an uptick in cigarette business, as will the states in tax revenue until, as Larry mentions, the real smuggling begins.
In Sweden, tractor trailers stop outside of Stockholm at rest-stops every weekend. They are from Poland. They serve the large local Polish community with sausages, cheap vodka and cigarettes: A pack of L&M which costs $7 in Sweden costs $2 in Poland. The cigarette business is brisk.
When the Swedish government greedily raised cigarette taxes through the roof in the mid 1990s, Malmo in southern Sweden became a center for low-priced Eastern European cigarettes coming in through Ystad in trucks on the ferries. The Swedes actually lowered taxes eventually, but the smuggling infrastructure exists and functions to this day.
This will make consumers looking for deals out-of-state into common criminals, and could create de-facto customs borders in states with high excise rates.
I still say "good riddance" to the Seneca tribe's cheap fag business. It destabilizes a market which is already topping out its taxability. Also, they were never meant to have the whole US as a territory. Their prominence nationwide most likely violates Big Tobacco's own regional distribution contracts, and the "1,000 jobs lost" in Western NY will be jobs gained elsewhere.
Additionally, if smuggling does become an issue, and it will, the Senecas should not be able to profit from it. Let the real smuggling give our lawmakers food for thought, and a reason to moderate/lower taxes on tobacco as the Swedes did. While that seems far-fetched now, Indian reservations would prevent it from even being considered.
feck makes this comment
Thursday, 18 March 2010
Billy Bobb makes this comment
Thursday, 18 March 2010
One set of toll booths on the NY Thruway when you enter their Sovereign Territory. One more toll booth to leave.
Steve makes this comment
Thursday, 18 March 2010
What other shippers will ship smokeless tobacco?
I found the Bloomberg News story about General doubling distribution in the USA to 1200 stores good news. Wonder if they will have some in everystate.
I live in West Virginia and would love for at least some General to be sold here.
I think it will do good once word gets out.
If anyone from Swedish Match reads this please consider bringing Ettan over here too.
Just tried Marlboro Snus Rich. Smells like praline or maple syrup. Tastes good too. Nic hit from one pouch. Not even noticeable. Found a wiki article saying there was 7.61 mg of nicotine in a single pouch. Yea right!
The price was the kicker though. 1.99 for six pouches that are the size of Swedish mini's. Ripoff on two counts. But I thought I'd try it anyway.
Great article by the way.
bigmick makes this comment
Friday, 19 March 2010
Plus if it is such a great thing why aren't the politicians howling about it in every media possible? I have seen virtually nothing about this anywhere except on the internet.
The Seneca are screaming about lost money and jobs. This is far longer reaching than just a couple Native tribes.
Andrew Romeo makes this comment
Friday, 19 March 2010
The best way to get General in West VA is to ask your local tobacconist to order it. Consumer/retailer requests have a way of attracting the attention of distributors. Now, it looks like SM is paying attention to larger cities (history repeats itself), so you may want to make some noise.
Harry makes this comment
Monday, 05 April 2010
Carole makes this comment
Friday, 24 September 2010
I KNOW you're being facetious (I hope), but that is EXACTLY what is happening -or will continue to happen if this Socialist remains in office for another term. This one term is bad enough! Why in the world would ANYONE think this man would make a good President for the USA?
Incredible!