Mr Li Yangzhe, Deputy DG Economic Operation Bureau NDRC,
Dr Ren Minghui, Deputy DG Department of International Cooperation, MOH Distinguished Guests, Ladies and Gentlemen,
Good Morning
First, I would like to extend my sincere thanks to the NDRC for taking the initiative to organize today's important event, aimed at providing a wider platform for controlling the tobacco epidemic. WHO is very grateful to have this opportunity to work with the NDRC and the Ministry of Health during this multi-sectoral workshop on the WHO Framework Convention on Tobacco Control (FCTC). The WHO Framework Convention is the world's first treaty designed specifically to reduce tobacco-related deaths and disease globally.
Two years ago, on May 21 2003, the world took a big step towards global tobacco control when WHO's 192 Member States unanimously adopted the FCTC. China demonstrated its determination to be part of the international fight against tobacco when it signed the WHO FCTC in November 2003. The WHO Framework Convention entered into force when 40 countries ratified the convention on 27 February 2005.
The WHO FCTC is particularly important in China, the world's largest producer and consumer of tobacco products. One third of the world's tobacco leaf production and one third of cigarette manufacturing output are located in China. And with approximately 350 million smokers, China has nearly one third of the world's smokers. In turn, one in four of all tobacco-related deaths occur in China today. The steps China takes now to ratify and implement the FCTC will have enormous implications for reducing the more than one million tobacco-related deaths in China each year.
As the world's biggest tobacco producer and consumer, China earns important revenues from tobacco and cigarette sales. In Yunnan province, for example, tobacco revenues make up 70% of overall provincial revenues. It is understandable that some global leaders perceive tobacco control as an economic mistake.
But WHO would like to argue otherwise. Firstly, numerous studies have proven that tobacco taxation is actually one of the most effective ways to reduce tobacco use without losing revenues. While higher taxes raise revenues, they also reduce consumption, especially among the poor and the young. In other words, the government's revenue rises with higher taxes, despite the drop in sales. This is a clear win-win situation for China, and further supports the argument for raising taxes on tobacco products, as encouraged in the WHO FCTC.
Secondly, we must also not forget the tremendous losses tobacco causes. Tobacco users are at a much higher risk of illness and premature death, depriving families of income and adding to both individual and national health care costs. For the poor, medical care is not always available — and when it is, it's often a luxury that many simply cannot afford or is putting many families into debts and poverty. In China, a study from the mid-1990s estimated the direct and indirect health costs of smoking at about US$6.5 billion per year.
As China works to ratify the FCTC, WHO also hopes that the upcoming 2008 Olympic Games will provide inspiration. WHO would very much like to see Beijing follow in the footsteps of other Olympic Games, like Sydney's, by making the 2008 Games smoke-free, sending a clear message that "sport and health" cannot be associated with tobacco.
China is also making progress in recognizing the dangers of "passive smoke." More than 50% of all non-smokers in China are exposed to second-hand smoke, including infants and children whose parents smoke around them. It is today's children who will be tomorrow's China; and to give children every opportunity for a healthy start of their precious life, we must work today to reduce the hazards they face through second-hand smoke.
Protecting children from tobacco also means protecting them from glamorous tobacco advertising, which often appeals to and targets the young. As the cause of serious health problems and death, cigarettes are far from attractive. WHO thus encourages China to ban tobacco advertising, as mandated by the WHO framework convention. It is similarly essential to have warning labels on tobacco products reminding people — young and old — about the dangers of cigarettes and other tobacco products.
On the occasion of World No Tobacco Day 2005, WHO honoured a few days ago the Ministry of Railways with an award for their significant contributions to a smoke-free environment. Since 1985, the Ministry has created more than 500 smoke-free railway stations and now operates 800 smoke-free passenger trains. This is an enormous achievement that WHO hopes will be recognized and replicated by other organizations in China.
It is clear that China is already working on many of the proposals identified by the WHO FCTC as key to controlling the tobacco epidemic. There are now 12 Ministries within China working to ratify the FCTC, with the NDRC taking the lead among the Ministries of Commerce, Finance, Foreign Affairs, Health, and others. WHO is encouraged by the progress being made on the internal process of ratification, and we hope that the ratification will be completed in time for China to join the first session of the Conference of Parties in February 2006.
Controlling the tobacco epidemic in China poses tremendous challenges. By accepting the importance of the FCTC, China has already demonstrated a clear commitment to overcome these obstacles. As China moves forward to ratify the WHO FCTC, we must not forget that the health of future generations depend on the progress we make today. The FCTC is a momentous step forward in the control of the tobacco epidemic. China plays a key role and we are grateful for the progress that China is making.
Wishing you all a fruitful workshop. Thank You.