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17 juillet 2009

ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS

CBO estimates that the costs of those mandates to state, local, and tribal governments would be small and would not exceed the threshold established in UMRA ($69 million in 2009, adjusted annually for inflation). The bill would preempt state laws governing tobacco products that are different from or in addition to the federal regulations authorized by the bill, including laws governing:
• Product standards,
• Premarket review,
• Adulteration,
• Misbranding,
• Labeling,
• Registration,
• Good manufacturing standards, or
• Modified-risk tobacco products.
That preemption would be an intergovernmental mandate as defined in UMRA. However, because the preemption would simply limit the application of state and local laws, CBO estimates that it would not impose significant costs on state or local governments.



07 juillet 2009

Income tobacco effect

Findings on how demand for cigarettes changes as consumers’ income increases are inconsistent. The estimated coefficient of the income variable in most studies of demand for cigarettes is significant and positive, implying that cigarettes are “normal” goods and that increasing income would have a positive effect on demand for cigarettes.
However, a number of studies (e.g., Wasserman et al., 1991, Keeler et al., 1993, Yurekli and Zhang, 2000), particularly those using cross-sectional survey data also found that income has either an insignificant effect or negative effect on demand for cigarettes. A metaanalysis by Andrews and Franke (1991) who used results from 48 studies found that the weighted mean income elasticity is 0.36, which is significantly greater than zero. They also found that the income elasticity for cigarettes fell over time.

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02 juillet 2009

Cigarette exports and imports

Turkey neither exported nor imported cigarettes until 1981 when the first cigarettes were exported, with the first imports following in 1984. It became a net importer of cigarettes, with a trade deficit of US$56 million in 1985, reaching a peak of US$289 million in 1990. Imports fell from 1991, reaching a negligible level in 1999.
Cigarette exports, in contrast, started increasing after 1990, peaking at 84 Tobacco in Turkey US$100 million in 1997. Consequently, in 1995, the trade deficit in cigarettes was reversed to a trade surplus, with the country becoming a net cigarette exporter in 1999. The foreign exchange earning from cigarette trade amounted to US$68 million in 1999

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