World Trade Organisation (WTO) has emphasised the detrimental impact of illicit trade on economic growth and development. In a recent publication titled “Fighting Illicit Trade in Medical Products,” WTO Director-General Ngozi Okonjo-Iweala highlighted the urgent need for international cooperation and capacity-building efforts to combat this global challenge.
Illicit trade not only undermines legitimate businesses but also promotes corruption and deprives governments of essential tax revenues necessary for vital societal investments. The WTO Secretariat, under Okonjo-Iweala’s leadership, has been actively examining how WTO rules can empower members to address the challenges posed by such unlawful trade activities.
Recognising the far-reaching consequences of illicit trade, Okonjo-Iweala emphasised the importance of a comprehensive approach. “Wider efforts are needed to deepen international cooperation and provide the technical assistance required to strengthen members’ capacity to combat illicit trade,” she stated.
Building on this momentum, the WTO Secretariat has launched a new publication titled “Illicit Trade in Food and Food Fraud.” This comprehensive resource draws upon the expertise of renowned organisations, including the Food and Agriculture Organisation of the United Nations (FAO), the International Seed Federation, a non-profit organisation for food safety, the Transnational Alliance to Combat Illicit Trade, and the United Nations Interregional Crime and Justice Research Institute.
The publication examines the multifaceted issue of illicit trade in food and food fraud from various perspectives, highlighting strategies to tackle this global challenge. Okonjo-Iweala underscored the severe economic, health, and societal impacts of this illicit activity, stating, “Although the global cost of fraud to the food industry is difficult to determine given the clandestine nature of the activity, annual estimates are in the range of $30–50 billion, not including losses associated with illicit trade in alcoholic drinks.”
Illicit trade in food and food fraud not only cause economic losses to legitimate businesses through diminished sales and consumer confidence but also pose significant public health risks. Adulterated or contaminated food products can have deadly consequences, while even counterfeit products that fail to contain advertised ingredients defraud consumers and erode trust in the food supply chain.
Okonjo-Iweala highlighted that the WTO rulebook provides legal tools to combat illicit trade and food fraud. At the publication’s launch event, new ideas for the WTO’s next steps were shared, including collaborating with the World Health Organisation (WHO), reviewing government actions through the Trade Policy Review process, and utilising Aid for Trade discussions to combat illicit trade. Suggestions also involved enhancing cross-border customs cooperation, examining the impact of e-commerce on food fraud, and continuing discussions in the Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) committees.
While acknowledging that future actions will require agreement among WTO members, Okonjo-Iweala’s call for concerted efforts underscores the organisation’s commitment to safeguarding economic growth, consumer safety, and the integrity of the global trading system.