Costa Rica Urged to Reject Counterproductive Nicotine Pouch Ban

Washington, DC — Prohibition Does Not Work (PDNW), an international coalition of think tanks and consumer advocacy organizations, has formally urged the Costa Rican government to reject a proposed ban on nicotine pouches, warning it will undermine public health, fuel illicit trade, and create unnecessary barriers to international commerce.

Costa Rica’s draft Technical Regulation RTCR-525:2025 would impose a sweeping prohibition on the registration, importation, exportation, manufacture, distribution, and sale of lifesaving oral nicotine products.

PDNW argues the proposal is not only excessive, but counterproductive.

“Costa Rica has made real progress reducing smoking,” said PDNW spokesperson Tim Andrews. “This policy risks reversing that success. Banning lower-risk alternatives doesn’t eliminate demand, it pushes it underground, where products are unregulated and far more dangerous.”

Smoking remains one of the leading causes of preventable death worldwide. Continued progress depends on ensuring adult smokers have access to lower-risk alternatives—not removing them.

Evidence from countries that have pursued prohibition or severe restrictions shows a consistent pattern:

• Brazil: Nationwide prohibition has driven millions of consumers to the illicit market, with documented contamination and safety risks.
• Mexico: Bans have fueled a large illegal trade dominated by organized crime, accompanied by violence and cross-border trafficking.
• Australia: A de facto ban has created a billion-dollar illicit market, with most users sourcing products outside the legal system.
• Netherlands: Product restrictions have led to widespread illicit sourcing and cross-border purchasing, undermining smoking reduction efforts.

“The evidence is overwhelming,” Andrews said. “When governments ban safer alternatives, consumers don’t quit - they switch to the black market or back to cigarettes. Either way, public health loses.”

By contrast, Sweden is on the verge of becoming Europe’s first smoke-free country, with smoking rates near 5 percent, the lowest in the region, driven by widespread access to alternatives such as snus and nicotine pouches.

“Sweden shows what works,” Andrews added. “When safer alternatives remain available, smoking rates fall dramatically. That’s the model policymakers should follow—not failed prohibitionist experiments.”

PDNW also warns that prohibition eliminates the very safeguards governments claim to support.

“Legal markets enforce age verification and product standards,” Andrews said. “Illegal markets do neither. Prohibition doesn’t protect young people: it hands the market to those least likely to follow the rules.”

The economic consequences are equally stark. A ban would eliminate legitimate business activity, reduce tax revenue, and increase enforcement costs as authorities attempt to contain the inevitable rise in illicit trade.

“Governments that pursue prohibition end up paying twice,” Andrews said. “They lose revenue from legal sales and spend more trying, and failing, to police the black market.”

PDNW urges Costa Rica to reject RTCR-525:2025 and instead adopt a balanced, evidence-based regulatory framework that protects public health while preserving access to lower-risk alternatives and maintaining open trade.

“The global evidence is clear,” Andrews concluded. “Prohibition does not eliminate use. It drives it underground, removes safeguards, strengthens illicit markets, and ultimately costs lives. Costa Rica now faces a clear choice: follow the evidence - or repeat the failed prohibitionist polices of failure."

You can download the letter in full here: