Illegal trade agreement has no liability release clause

The European Commission has said that the 2010 anti-fraud co-operation agreement between British American Tobacco, EU member states and the Commission does not include a clause releasing the company from ‘any civil claims arising out of past conduct relating to illicit trade’.

The Commission was replying to a question by Bart Staes, a Belgian politician and MEP for Flanders.

In a preamble to his question, Staes said that on July 15, 2010, BAT had signed an agreement with the EU to combat the illegal trade in tobacco.

‘A press release from Her Majesty’s Revenue and Customs in the UK suggests that the BAT agreement has a discharge clause that releases the company from past liability for smuggling, noting that “the manufacturers (BAT) are released from any civil claims arising out of past conduct relating to illicit trade”,’ Staes said.

‘On the OLAF website no information is provided on the existence of such a clause.’

Staes asked the Commission to confirm or deny that such a clause exists in the 2010 tobacco agreement concluded between BAT and the EU.

‘The Commission would like to inform the Honourable Member that such a clause does not exist in the 2010 anti-fraud Cooperation Agreement concluded between British American Tobacco, Member States and the EU,’ the Commission said in its written reply.