Keynote: Julian Cheung

The 2023 GTNF conference theme of “Change the Conversation. Change the Outcome.” was reiterated by keynote speaker Julian Cheung, anti-illicit trade operations director for Japan Tobacco International’s Asia-Pacific region. Cheung spoke on changing the conversations about illegal trade.

Before working with JTI, Cheung worked for the Independent Commission Against Corruption in Hong Kong, bringing much experience to the subject of anti-illicit trade.

She noted that there are many aspects to anti-illicit trade operations, including investigations, collecting evidence and looking at the forensics of samples. JTI works closely with law enforcement agencies to stop illicit trade, according to Cheung.

Behind the contraband, Cheung said, is often organized crime, which takes advantage of shifts in supply and demand and sees tobacco as a “high-profit, low-risk” market.

The illicit tobacco trade “impacts us all,” she said. Many jurisdictions have attempted to limit tobacco product usage and illicit trade through increased excise taxes, which has only led to more illicit trade—back to supply and demand; the demand is high, and if organized crime can offer supply at lower prices, they will profit rather than the licit industry. Online commerce, too, has made it easier for illicit products to flood the market. Consumers do not have an easy way to determine whether the products they order online are illicit or legal, regulated products. Online sales increased during the Covid-19 pandemic as many “nonessential” businesses closed either temporarily or permanently.

Cheung expressed a need for greater cooperation between governments, industry and law enforcement agencies at national and international levels to help combat illicit trade. The tobacco industry has a role to play, she said. Policies should be better balanced with deterrents that disrupt the financial gain of criminal networks.

“Let’s switch the narrative on illegal trade and act together,” Cheung said. “Through innovative strategies, cooperations and a focus on disrupting the financial foundation of these criminal networks, we can curtail the illegal trade and safeguard our communities and economies.”