US: Clinton blow to tobacco deal

On 9 July President Bill Clinton dealt a major blow to the proposed $368.5 billion deal reached previously between tobacco producers and litigants concerning various class action legal suits. The deal meant that the Food and Drug Administration (FDA) would have to show that the reduction of nicotine levels in tobacco would not mean a significant increase in the demand for contraband cigarettes; if it could not, then such a reduction would technically be barred. The Clinton administration is opposing this element of the agreement, and the White House is said to be opposed to any step that curtails the FDA’s right to regulate tobacco. If the President continues to block this, then the agreement is unlikely to obtain Congressional approval and will therefore collapse.