The restrictions proposed by the Ministry of Social Affairs and the Ministry of Justice would allow nicotine pouches, nicotine strips and nicotine sprays containing no more than four milligrams of nicotine per gram to be sold in Estonia. The aim is to reduce the use of nicotine products among young people.

Erkki Keldo sent a letter to the Ministry of Justice and Digital Affairs on Wednesday informing it that he had declined to approve the draft bill. Keldo said the Ministry of Economic Affairs and Communications supports protecting the health of children and young people and curbing the illegal sale of nicotine products, but considers it important that measures restricting freedom of enterprise be sufficiently justified and proportionate.

"The changes proposed in the draft bill could significantly affect manufacturers, importers, wholesalers and retailers of nicotine products operating in Estonia. The explanatory memorandum does not adequately assess the extent of these impacts or provide a convincing justification for the proposed maximum nicotine content of 4 mg/g for nicotine-containing products related to tobacco products," Keldo said.

He noted that the draft bill's maximum nicotine content of four milligrams per gram is based on Latvia's approach, but said this was not sufficient justification for restricting freedom of enterprise.

"The explanatory memorandum does not indicate the nicotine content of nicotine pouches and other products covered by the bill currently on the Estonian market, what proportion of products currently marketed legally would comply with the proposed limit or how many businesses and products would be affected by the change," the economy minister said.

He is also dissatisfied that the draft bill does not include a comparative analysis of approaches taken by other EU member states or explain why Latvia's regulations are the best model for Estonia.

Keldo said the explanatory memorandum needs to be supplemented with a comparison of different options. The impact of the limit on the health of children and young people, the risk of accidental poisoning, businesses, the functioning of the legal market and consumer behavior should also be analyzed.

The data presented in the explanatory memorandum concern products containing e-cigarette liquid, but does not address the impact of the changes on nicotine pouches, strips, sprays and heated nicotine sticks.

"We ask that the impact assessment be expanded to separately cover all product categories regulated by the draft bill and the requirements proposed for them," the minister said.

Keldo also wants the impact of the changes on Estonian manufacturers, exports, employment and regional businesses to be examined, along with their impact on the legal market, illegal trade and tax revenue.

"Possible substitution behavior must also be analyzed, including whether some consumers could switch to products with unregulated contents or to other tobacco and nicotine products and what impact this could have on achieving the draft bill's public health objective," Keldo said.

The Ministry of Economic Affairs and Communications is also dissatisfied with a provision in the draft bill stipulating that products may not contain substances that produce a flavor or aroma other than tobacco or menthol and that only substances listed in a specific regulation may be used to provide those flavors. However, the explanatory memorandum does not explain why those particular substances are considered suitable or what costs businesses could incur in reformulating existing products.

Keldo said the bill's relationship with the planned update of the European Union's legal framework for tobacco and nicotine products should also be assessed.

The Ministry of Social Affairs has previously said that people are starting to use nicotine products at increasingly younger ages. While young people previously tried nicotine at ages 15 or 16, they are now doing so at around age 11. Nicotine pouches and e-cigarettes are the most common products used by those starting out.

Just over one-fifth of the nicotine products currently on the market comply with the requirements proposed in the draft bill. Around 60 percent of products would have to be reformulated, while nearly one-fifth would have to be removed from the market.

Several European countries have tightened restrictions on nicotine products in recent years. Latvia raised the minimum age for purchasing tobacco and nicotine products to 20 two years ago. No such proposal is currently under consideration in Estonia.

The new rules are planned to take effect in 2028, although the exact date will be determined as the draft bill moves through the legislative process.

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