Trade in Counterfeit and Pirated Goods
Apart from narcotics trafficking, counterfeiting and piracy account for the largest economic value of all forms of illicit trade. The problem has intensified to staggering levels. The OECD reported a 154% increase in counterfeit trade globally, from $200 billion in 2005 to $509 billion in 2016. US Customs data from 2000 to 2018 shows a tenfold rise in seizures of infringing goods, from 3,244 to 33,810. Up to 5% of goods imported into the EU are counterfeit, with China being the top producer (OECD & EUIPO, 2016). This widespread issue diverts profits and tax revenues to the underground economy, jeopardizing the economy and consumer safety.
Counterfeiting and piracy occur across multiple industry sectors and can extend to other and similar problems. For example, unbranded petroleum products and substandard pharmaceuticals may be considered fakes, but may not necessarily encompass an intellectual property (IP) infringement. Digital illicit trade, such as cybercrimes and money laundering, also facilitates piracy. These activities distort competition, impacting local and international brands. Businesses face various costs, including loss of market share, supply chain monitoring, regulatory compliance, consumer safety liability, reputational risks, and increased security and insurance expenses. Featured Events
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Learn more about the benefits of the SHOP SAFE Act
At its core, the Shop Safe Act holds online marketplaces accountable for screening third-party sellers, disclosing more information about the seller to online shoppers, removing counterfeit and stolen product listings, and barring bad actors from selling on their platforms – consumer protections that have all been missing for far too long.
SHOP SAFE Act of 2023: TEXT SHOP SAFE: ONE PAGER SHOP SAFE: THE FACTS SHOP SAFE ACT FACT SHEET SHOP SAFE ACT FAQ Press Releases
Learn how counterfeit and piracy impacts the achievement of the UN Sustainable Development Goals
From smuggling, counterfeiting and tax evasion, to the illegal sale or possession of goods, services, humans and wildlife, illicit trade is compromising the attainment of the UN SDGs in significant ways, crowding out legitimate economic activity, depriving governments of revenues for investment in vital public services, dislocating millions of legitimate jobs and causing irreversible damage to ecosystems and human lives.
The TRACIT report Mapping the Impact of Illicit Trade on the Sustainable Development Goals investigates illicit trade in 12 key sectors that participate significantly in international trade and are most vulnerable to illicit trade. For each sector, the negative impacts of illicit trade are mapped against the 17 UN SDGs. The full report is available here. Read the chapter: SDGs and illicit trade in counterfeit and pirated goods 
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