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The Federal Trade Commission is likely to take a hard look at the latest proposed transaction, said David Balto, a Washington attorney and former policy director for the FTC who litigated BATs merger with Reynolds in 2004

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The large number of duty-free stores along the U.S.-Mexico border, custom bonded warehouses and Free Trade Zones along major interstates across Southwestern states are likely contributing to this underground economy as well.[*] [*] We have long known that law enforcement and others believe that it is possible that the bulk of illicit cigarettes our model ascribes to Mexico may be coming from these facilities