Andorra

Andorra is a tiny country with a of population 74,000, located in the Pyrenees mountains between France and Spain. Since the 1200s, it has been a co-principality, that is to say, it is ruled by two heads of state - the president of France and a Bishop of a nearby town in Spain. The power of these two leaders has been diminished since the 1993 adoption of a democratic constitution. Tourism and banking are important industries, helped by tax-free shopping for tourists and a tax-haven status for bankers.

Tobacco industry involvement in Andorra
Action on Smoking and Health, UK writes in january, 2000 report that, "For a time, Andorra was used by British manufacturers Gallaher and Imperial Tobacco in a manner similar to British American Tobacco's [smuggling] operations in Aruba ... As a result of this distribution network, UK tobacco exports to Andorra rose from 13 million cigarettes in 1993 to 1,520 million in 1997 - vastly more than the Andorran population of 63,000 could conceivably consume.  In Aruba (and Andorra), BAT exercised control on illegal distribution channels indirectly, through intermediaries. The operations consisted of


 * Adopting an approach to business planning and sales target setting which treats the various routes for smuggling as near-normal distribution channels which are under the same sort of control as legitimate channels;
 * Deliberately establishing business relations with intermediaries that directly or indirectly supply smugglers and directing these companies so as to gain share in the illegal markets;
 * Controlling the price and availability of products through these channels and so influencing end-market conditions;
 * Building warehouses and stationing marketing personnel close to borders with poor customs controls;

Leaders

 * Albert Pintat, Prime minister, centre-right Liberal Party, since April 2005
 * Joan Enric Vives i Sicilia, Bishop of Urgel, Spain - Co-head of state
 * Nicolas Sarkozy, President of France - Co-head of state

External resources

 * Timeline: Andorra, BBC, accessed January 2008.

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