The World Trade Organization (WTO) has released a new publication addressing the challenges of illicit trade in food and food fraud, and the role the WTO can play in mitigating these issues. The publication, launched on May 28, features contributions from experts across international organizations, non-governmental bodies, the private sector, and the WTO Secretariat. It underscores the significant impact of illicit food trade on food security and public health and proposes comprehensive strategies for tackling the problem.
At the launch event, leaders from business, international organizations, and trade experts highlighted the urgent need for collective action. The publication advocates for a multifaceted approach involving regulatory measures, enforcement, industry cooperation, and consumer education. It also details actions by various agencies and emphasizes that several WTO agreements provide effective tools to combat illicit trade.
Director-General Ngozi Okonjo-Iweala, in her opening remarks, stressed the importance of the WTO’s role in ensuring fair international trade practices. "The leveling of the playing field must extend to weeding out all forms of illegal trade and fraudulent activities," she stated, highlighting the pervasive nature of illicit activities across various agri-food sectors, including olive oil, honey, essential oils, wines, and spirits.
The Director-General pointed out the substantial economic impact of illicit trade, with estimated annual losses for global traders ranging between USD 30 billion and USD 50 billion, excluding losses related to illicit trade in alcoholic beverages. She emphasized the importance of the WTO Agreement on Sanitary and Phytosanitary Measures (SPS) and the Agreement on Technical Barriers to Trade (TBT) in regulating food imports and addressing deceptive practices. Additionally, the WTO's Trade Facilitation Agreement (TFA) was highlighted as a key tool to curb counterfeit food and beverages.
Jeffrey Hardy, Director-General of the Transnational Alliance, highlighted the broad negative impacts of illicit food trade, which can result in economic losses of up to half a trillion dollars when including the fish and spirits sectors. He warned that the growing demand for food and the increasing global population would likely exacerbate the problem, stressing the need for real efforts to mitigate illicit trade to achieve the UN Sustainable Development Goals.
Helen Medina, CEO of the World Spirits Alliance (WSA), noted the serious threat to the spirits sector, with one out of four bottles of spirits being illicitly traded. She commended WTO rules for their role in combating the issue and emphasized the importance of consumer education to prevent and punish illicit trade.
Ambassador Usha Chandnee Dwarka-Canabady of Mauritius underscored the importance of food safety for net food-importing countries like Mauritius, which imports almost 70% of its food. She pointed out the challenges in ensuring food safety despite diligent border control measures and called for support in capacity building and access to new technologies in customs management.
Ambassador Chenggang Li of China shared the country's efforts to combat illicit trade at the borders, including trademark infringement prevention, modernized monitoring systems for imported food, and leveraging social media for transparency. He highlighted the WTO's role in facilitating cooperation and sharing best practices among member countries.
Deputy Director-General Jean-Marie Paugam emphasized the critical role of lesser-known WTO agreements, such as the Customs Valuation Agreement and the Agreement on Pre-Shipment Inspection, in combating fraud. He suggested that trade liberalization could reduce the incentives for smuggling and fraud and reaffirmed the WTO's commitment to providing technical assistance and capacity-building strategies to help member countries implement relevant trade rules.
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