This study examines the potential for the misuse of Free Trade Zones for trade in counterfeit and pirated goods.

This study examines the potential for the misuse of Free Trade Zones for trade in counterfeit and pirated goods.

This study offers unique up-to-date analysis of the impact on global trade of counterfeit and pirated products, known as "fakes" by the general public. Using statistical analysis and drawing on a global dataset covering almost half million customs data on seizures, the study estimates the huge share of international trade commandeered by counterfeit and pirated goods. In 2013, international trade in such products represented up to 2.5% of world trade, or as much as USD 461 billion. This is the equivalent of the GDP of Austria, or the combined GDP of Ireland and the Czech Republic. Above all, it highlights that right holders, governments and the formal economy as a whole suffer from significant economic and social losses. It also gives an idea about the potential financial revenues collected by criminal networks that are behind such trade.^More specifically, counterfeit and pirated products amounted to up to 5 % of imports in 2013 in the European Union, or as much as EUR 85 billion (USD 116 billion). This suggests that the relative impact of counterfeiting is twice as high for a group of developed countries, such as the EU, than it is for the world as a whole. The scope of the phenomenon appears to be greater than a decade ago. Back in 2008, a previous OECD study estimated that counterfeit and pirated goods accounted for up to 1.9 % of world imports, or up to USD 200 billion, relying on the best data and more limited methods available at that time. In the context of today's revival of international trade in the global economy, there is no shortage of opportunities for counterfeiters and criminals. Counterfeit and pirated trade is a major threat to any modern, knowledge-based economy. Counterfeiting and piracy matter in an innovation driven global economy.^Intellectual property (IP) is a key value generator for firms, helping them succeed in competitive markets. At the macroeconomic level, IP protection and enforcement is one of the main drivers of innovation, which contributes to long term economic growth. Given the fundamental economic importance of IP, counterfeiting and piracy must be directly targeted as a threat to sustainable IP-based business models.

This study examines the value, scope and trends of trade in counterfeit and pirated goods. First, it presents the overall scale of this trade and discusses which parts of the economy are particularly at risk. Next, it looks at the main economies of origin of fakes in global trade. Finally, it ...

This report, one in a series of studies by the OECD and the European Union Intellectual Property Office (EUIPO), enhances understanding of the issues and challenges facing governments, businesses and society posed by the trade in fake pharmaceutical products.

This report quantifies the magnitude, value, scope and trends of global trade in counterfeit and pirated goods, also known as fakes. Using a unique enforcement dataset and tailored methodology, it estimates the overall scale of this threat and outlines which industries are particularly at risk.

Networks of illicit trade in counterfeits use many modern solutions, including e-commerce, a tool that offers numerous advantages for consumers and businesses. The COVID-19 pandemic has accelerated both illicit trade and its misuse of the online environment.

Economists explore the relationship between expanding international trade and the parallel growth in illicit trade, including illegal drugs, smuggling, and organized crime. As international trade has expanded dramatically in the postwar period--an expansion accelerated by the opening of China, Russia, India, and Eastern Europe--illicit international trade has grown in tandem with it. This volume uses the economist's toolkit to examine the economic, political, and social problems resulting from such illicit activities as illegal drug trade, smuggling, and organized crime. The contributors consider several aspects of the illegal drug market, including the sometimes puzzling relationships among purity, price, and risk; the effect of globalization on the heroin and cocaine markets, examined both through mathematical models and with empirical data from the U.K; the spread of khat, a psychoactive drug imported legally to the U.K. as a vegetable; and the economic effect of the "war on drugs" on producer and consumer countries. Other chapters examine the hidden financial flows of organized crime, patterns of smuggling in international trade, Iran's illicit trading activity, and the impact of mafia-like crime on foreign direct investment in Italy.

This study provides an in-depth exploration of a series of factors that can explain a country’s propensity to export fake goods.