What are the issues? What additional evidence or data do you recommend that they obtain?

The issues that concern PMI is whether it is possible for them to track every cigarette carton along its supply chain and what affects the new technologies will have on its business. The problem is that any new technology is going to cost the company millions of dollars. One of the proposed solutions involving RFID technology would cost the company $13 to $23 million dollars for a full rollout and over $2 billion dollars to purchase RFID tags and the cost of hardware that is needed for use of RFID tags. Another issue for PMI was the fact that tracking and tracing tests would slow down production a great deal which means less money for the company because they would be making less. Developing technology to solve the problem has not been a huge issue for the company, but the issue of finding a solution that would satisfy both the EU and PMI has been harder to deal with. PMI has complied with the terms of the settlement, but is having trouble accepting the solutions because of the effects it could have on the company.

The EU and PMI need to continue working together to come up with solutions that will solve the problems with the supply chain and not seriously damage PMI as a company. Right now the solutions that are available to PMI show that progress is being made, but a solution that will eliminate all problems is nowhere near ready yet.