But their lawyers claim that a plain packaging requirement would violate the Free Trade Agreement. They say they will sue for hundreds of millions of dollars if Canada goes ahead. William Webb, president of Philip Morris International, has also made investment threats. He wrote to Roger Simmons, Liberal MP and chair of the committee on plain packaging, saying that Philip Morris employs 5,000 Canadians in food plants. He threatened to reduce investment in non-tobacco goods and jobs if the government goes ahead with plain packaging.
Economists dismiss the investment threat.
Investment decisions are based on perceived profitability. It is unlikely that Philip Morris's bullish temper tantrum will result in the removal of profitable products. They are the 7th largest industrial company in the world. Ten percent of your grocer's shelves are stocked with Philip Morris products. Chances are, we all do .