Illicit trade in fake goods is a significant and growing threat in a globalised economy. Its harmful impact on consumers, economic growth, innovation, the rule of law and, ultimately, trust in well-functioning global markets should not be underestimated.
In recent years, the OECD and the EU Intellectual Property Office (EUIPO) have been collecting evidence on various aspects of this risk. The results have been published in a set of reports starting with Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact (2016). These results have since been expanded and updated in subsequent reports, including Trends in Trade in Counterfeit and Pirated Goods (2019) and Global Trade in Fakes: A Worrying Trend (2021). The results are a major concern, as trade in counterfeit and pirated goods amounted to up to 2.5 % of world trade in 2019; when considering only imports into the EU, fake goods amounted to up to 5.8 % of imports. These amounts are similar to those of previous years, and illicit trade in fakes remains a serious risk to modern, open and globalised economies.
Trade in counterfeit goods is a major risk for today’s modern, productive and forward-looking global economy. It not only strikes at the heart of the engine of sustainable economic growth, but also poses significant risks to health, safety and the environment.
This report builds on previous analysis, presenting detailed, quantitative information on the value of illicit trade in fake goods that can pose health risks (e.g. fake pharmaceuticals or food products), safety risks (e.g. counterfeit automotive spare parts, fake batteries) and environmental risks (e.g. fake chemicals or pesticides). The evidence in this report can help raise awareness of the risks of this trade and its implications for health and environmental policy.
This study was carried out under the auspices of the OECD’s Task Force on Countering Illicit Trade, which focuses on evidence-based research and advanced analytics to assist policy makers in mapping and understanding the vulnerabilities exploited and created by illicit trade. This report was approved by the Public Governance Committee via written procedure on 9 March and prepared for publication by the OECD Secretariat.