Rising illicit trade needs global response
WTO should take lead in combating problem, speakers at Global Illicit Trade summit held
Illicit trade is growing and the response through multilateral trade institutions such as World Trade Organisation will help to combat the problem, a senior official from the Dubai government said.
“Illicit trade is a global issue and its breadth and scale are growing,” said Raed Safadi, chief economic adviser, office of the director-general, Government of Dubai while speaking at the The Economist Events’ Global Illicit Trade Summit in Abu Dhabi.
“Illicit networks exploit the technological, financial and communication innovations of globalisation. The international response through multilateral trade institutions such as the World Trade Organisation will help combat illicit trade.”
He also said there should be a holistic approach to deal with the issue.
“The focus should not be on a few categories, but on all categories of illicit trade. Then a serious conversation needs to start with the WTO.”
The event held at Etihad Towers in Abu Dhabi brought together delegates and prominent experts from the government, law enforcement agencies and the private sector to address the root causes of illicit trade and ways to combat it.
Economic opportunity
Michael Morantz, policy analyst, illicit and counterfeit trade, in the Organisation for Economic Cooperation and Development (OECD), said that free trade zones (FTZ) represent a significant economic opportunity but also pose heightened risks of illicit trade.
A recent OECD report on ‘Trade in Counterfeit Goods and Free Trade Zones’ for example, finds that the presence of an additional FTZ on a given territory is associated with a 5.9 per cent increase in the value of trade in counterfeit goods from the host economy.
“From this data that the OECD has produced on FTZs it is clear we need more accountability and better transparency for Free Trade Zones. The OECD is working on developing guidance on FTZs with its member countries and partners through the Task Force on Countering Illicit Trade, which it hopes can help strengthen the resilience of zones.”