TOB Magazine

We are calling

for every

manufacturer,

retail tobacconist

and consumer

in America to

contact their two

United States

Senators and

congressperson.

CRA CORNER

J. Glynn Loope is executive

director of the Washington,

D.C.-based Cigar Rights

of America.

[ 36 ]

TOBACCO BUSINESS

[

SEPTEMBER

OCTOBER

17 ]

WHEN WE DISCUSS THE ADVERSE economic impact of govern-

ment action against the passion for and production of great cigars—

whether it is smoking bans, taxation, or the profound and detrimental

effects federal regulation can have on the overall premium cigar industry

—we discuss it in the context of the local cigar shop, the domestic sup-

ply chain or the corporations of manufacturers headquartered in loca-

tions ranging from Miami to Philadelphia.

Those manufacturers serve as the masterminds of blends, produc-

tion, marketing and “selling the sizzle,” but there is another side of this

equation that cannot be forgotten—the workers of Latin America who

handle and orchestrate the production of those works of art, from the

seedlings to the ship that delivers them to our shore.

This is where the federal regulation of cigars is most

frightening. As Jorge Armenteros of Tobacconist Uni-

versity states, “We are living in a renaissance of cigar-

making.” He’s right, as some of the greatest cigars in his-

tory are on the local shop shelves as we speak.

It’s a tribute to the creativity and innovation of new

and old cigar-makers alike. It’s also a tribute to the na-

tions of Honduras, Nicaragua and the Dominican Re-

public for not only having the natural environment for

the production of great cigars, but having the workforce

dedicated to the skill needed to produce outstanding ci-

gars. That impact spans to the nations of Brazil, Ecua-

dor, Mexico, Costa Rica and across the Atlantic to the

Republic of Cameroon, where more than 3,000 farms

and workers are producing prized tobacco.

Several years ago, I spoke to a group at the Nicaraguan

Cigar Festival in Esteli, and I said, “I challenge any of you

to smoke a cigar in the same way after you have looked

into the eyes of these rollers, witnessed the care of their hands on that leaf

and experienced the dedication and pride they have in their craft.” That’s

an image I want every cigar enthusiast in America to have when they are

enjoying that cigar among friends or alone on their back porch.

Now along comes the U.S. government with the threat of federal

oversight and regulation of the industry—wanting, in many ways, to

treat premium cigars more harshly than even the products that Con-

gress actually told them to regulate. If regulation stems production by

so much as a fraction, jobs critical to the stability of the Latin American

economy will be at risk.

That’s why Cigar Rights of America has been diligent in communicat-

ing with the embassies of Latin America on the issue of federal regula-

tion. Working together, a joint letter from the ambassadors to the U.S. from

Honduras, Nicaragua and the Dominican Republic expressing their seri-

ous concerns about the regulations was sent to the U.S. Department of

State, the U.S. Food & Drug Administration (FDA) and to offices of the

Trump administration.

The letter notes, “If history is any precedent, some of the regulations

that could be imposed by the agency would prove disastrous to the

centuries-old cigar industry that provides over 300,000 jobs among

our three nations and represents millions of dollars in export revenue.

No regulatory measure should threaten such jobs and hence raise the

specter of political and economic consequences within our region.”

Then there are issues close to home. As the border issue began to

make news cycles here in the U.S. and the implications and association

with our issue of cigar regulation started to become clear, news spread

that children in Honduras were being affected.

To highlight what this means, the ambassador of Honduras to the

United States, the Honorable Jorge Alberto Milla Reyes, noted, “There

are, indeed, international trade and economic implications with regu-

lating cigars from Honduras and throughout Latin America. The gov-

ernment of Honduras values the investment and source of employment

provided by the premium cigar industry and knows well how it provides

for over 35,000 families in Honduras and 300,000 in the

region. We cannot underestimate how this contributes to

the stability, especially at this time of concern over issues

such as immigration and security.”

All of this informs us that this issue is bigger than most

imagined. Major multinational corporations are used to

playing this game. They are accustomed to courting the

government for what they want, opposing what they do

not and, most of the time, getting their way. The opposi-

tion groups have their tactics down to the push of a but-

ton in order to unleash their questionable science and

distorted “facts” onto a mass media market more than

willing to regurgitate their version of the issue.

Our side exists in a world of craftsmen, farmers and

rollers with the hands of a Rembrandt or Picasso. They

are not purveyors of nicotine, nor a harm to the public at

large. Our world is one of camaraderie, fellowship, soli-

tude and reflection—with our art in hand. That is a mes-

sage to defend.

While we will not speculate on any judicial action, the ability of Con-

gress to protect the industry is clear. They must advance the exemption

language from regulations adopted on July 12, 2017, by the U.S. House

of Representatives Committee on Appropriations and strive for a means

to make that exemption permanent.

They need to hear from all sectors of the industry, as never before,

that cigar manufacturers, retail and distribution channels, and con-

sumers deserve and demand that premium, handmade cigars should

not be subject to draconian federal regulations.

We are calling for every manufacturer, retail tobacconist and con-

sumer in America to contact their two United States Senators and con-

gressperson. Visit their district offices, call the local office and the Wash-

ington office, and voice your disapproval of the cigar regulations. Invite

them to local cigar shops, and host a cigar town hall. Tell them to sup-

port HR 662/SB 441 and the actions of the House of Representatives

Committee on Appropriations that call for “no funding for FDA actions

against premium cigars.” Let’s make the rest of 2017 the turning point

in this debate.

Over-regulation impacts economic and political stability in Latin America.

The

International Implications

for Regulating Cigars