LAGOS, Nigeria (VOICE OF NAIJA)-The World Trade Organisation has emphasized that illicit trade not only harms societies and impedes economic growth and development but also undermines legitimate businesses, fosters corruption, and deprives governments of crucial tax revenue necessary for societal investments.
The WTO Secretariat, led by Director-General Ngozi Okonjo-Iweala, has been analyzing how WTO rules assist members in tackling challenges related to illicit trade.
In a recent publication on combating illicit trade in medical products, released by the WTO on Monday, Okonjo-Iweala underscored the necessity for broader efforts to enhance international cooperation and provide technical assistance to bolster members’ ability to combat illicit trade effectively.
She revealed that the WTO Secretariat had introduced a new publication focusing on illicit trade in food and food fraud, aimed at exploring the WTO’s potential role in addressing this critical issue.
According to the WTO Director-General, the publication leverages the expertise of several organizations, such as the Food and Agriculture Organization of the United Nations, the International Seed Federation, a nonprofit focused on food safety, the Transnational Alliance to Combat Illicit Trade, and the United Nations Interregional Crime and Justice Research Institute.
These collaborations aim to explore diverse perspectives and propose strategies for addressing illicit trade in food and food fraud.
READ ALSO: PHOTOS: WTO DG Ngozi Okonjo-Iweala Visits War-Torn Ukraine For The First Time In 15 Years
“Illicit trade and fraud in the agri-food sector have a damaging impact on various stakeholders, ranging from consumers, farmers and agri-businesses to regulators and other operators within the food industry. 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 $30–50bn, not including losses associated with illicit trade in alcoholic drinks.
“The impacts of illicit trade can be far-reaching, affecting different segments of society and the economy. Illicit trade in food and food fraud causes economic losses to legitimate businesses through the loss of sales and consumer confidence. Governments not only lose valuable revenue as a result of tax evasion but also incur costs in the fight against counterfeit crime and smuggling,” she said.
She elaborated that counterfeit and fraudulent food and beverages pose significant threats to public health and safety.
Adulterated or contaminated food products, she added, could lead to severe health risks for consumers and potentially fatal outcomes.
“Even counterfeit products that cause no harm but fail to contain the ingredients advertised defraud customers and erode consumer trust in the food supply chain,” the former Nigerian economy minister stated.
Okonjo-Iweala highlighted that the WTO rulebook provided legal tools to combat illicit trade and food fraud.
She highlighted that during the publication’s launch event, new proposals for the WTO’s future actions were discussed, including potential collaboration with the WHO, reviewing government initiatives through the Trade Policy Review process, and utilizing Aid for Trade dialogues to address illicit trade.
Okonjo-Iweala additionally noted suggestions to strengthen cross-border customs cooperation, assess the influence of e-commerce on food fraud, and continue discussions within the TBT/SPS committees.
She emphasized that any forthcoming actions would require agreement among WTO members.