A new World Trade Organization (WTO) publication titled “Illicit Trade in Food and Food Fraud” has brought together contributions from experts across international organizations, non-governmental organizations, the private sector, and the WTO Secretariat. The publication highlights the detrimental impact of illicit food trade on food security and public health and outlines various strategies to counter these issues. A comprehensive response is deemed necessary, involving regulatory measures, enforcement, industry cooperation, and consumer education.
In her opening remarks, Director-General Ngozi Okonjo-Iweala emphasized the importance of the WTO's role in regulating international trade to prevent illegal activities. She stated: “The leveling of the playing field must extend to weeding out all forms of illegal trade and fraudulent activities,” including sub-standard food, falsely labeled food, counterfeit goods, and smuggled products.
Okonjo-Iweala highlighted that illicit food trade results in significant economic losses for global traders, estimated between USD 30 billion and USD 50 billion annually. This figure excludes losses associated with illicit trade in alcoholic beverages. She noted that these activities are widespread across all continents and affect most agri-food sectors such as olive oil, honey, essential oils, wines, and spirits.
Discussing the role of WTO agreements in addressing these challenges, she emphasized the importance of the Agreement on Sanitary and Phytosanitary Measures (SPS) and the Agreement on Technical Barriers to Trade (TBT). These agreements regulate food imports based on scientific risk assessments and address deceptive practices. Additionally, she noted that the Trade Facilitation Agreement (TFA) can help curb counterfeit food and beverages by facilitating legal trade flows.
“We need to leverage these agreements, and indeed the whole WTO toolbox, to fight illicit trade and food fraud,” said Okonjo-Iweala. She expressed hope that the publication would spur discussions and actions focused on prevention.
Jeffrey Hardy, Director-General of the Transnational Alliance to Combat Illicit Trade (TRACIT), stressed the wide range of negative impacts illicit food trade has on businesses. He warned that high demand for food coupled with a growing world population would exacerbate this issue. “You're not going to be able to achieve the UN Sustainable Development Goals unless real efforts are taken to mitigate illicit trade,” he added.
Helen Medina, CEO of the World Spirits Alliance (WSA), highlighted serious threats faced by the spirits sector due to illicit trading activities such as smuggling and tax evasion. She commended WTO rules for their role in combating these problems while emphasizing consumer education's importance: “It's important for consumers to understand that it's crucial to punish and prevent illicit trade through robust controls and enforcement.”
Ambassador Usha Chandnee Dwarka-Canabady of Mauritius welcomed discussions at the WTO on this topic. She stressed Mauritius' reliance on imported food for consumption: “When you import food for your own consumption and almost 70% of it is imported, you have a duty to make sure that your system in place is foolproof.” Despite diligent border control measures, she highlighted challenges such as capacity building needs.
Ambassador Chenggang Li of China outlined his country's targeted efforts at borders against illicit trade through modernized monitoring systems for imported foods and leveraging social media for transparency. He emphasized that sharing practices among WTO members could enhance cooperation: “The WTO is well-placed for members to share their own practices... More could be done in this area.”
Deputy Director-General Jean-Marie Paugam pointed out lesser-known WTO Agreements like Customs Valuation Agreement's role in combating fraud while noting that trade liberalization reduces incentives for criminal activities: “The WTO never prevents any country from regulating trade,” but promoting liberalization also serves as a disincentive for criminal activities.”
Paugam reaffirmed WTO’s commitment towards providing technical assistance along with capacity-building strategies aiding member countries implement relevant rules against illicit trades effectively.
The launch event can be viewed on YouTube via [this link](https://www.youtube.com/watch?v=s2CrfvI4WIs). The publication is available [here](link).