Trade in fake Italian goods costs economy billions of euros

Giuseppe Conte Italy 2018

Giuseppe Conte, Italian Prime Minister. (Presidenza della Repubblica, 2018)

This article is brought to you in association with OECD.

Global trade in fake Italian goods such as luxury handbags, watches, foodstuffs and car parts is taking a bite out of Italy’s economy equivalent to around 1-2% of GDP in terms of lost sales, according to a new OECD report.

Trade in counterfeit goods and the Italian economy estimates the total value of counterfeit and pirated Italian goods sold worldwide at over 35 billion euros for 2013, equivalent to 4.9% of global Italian manufacturing sales. This resulted in over 25 billion euros in lost sales by Italian companies in a year when Italy’s GDP was 1.6 trillion euros.

Past OECD analysis of data from nearly half a million customs seizures around the world over 2011-13 has shown that trade in counterfeit goods is worth nearly half a trillion dollars a year, or 2.5% of global imports. US, Italian and French brands are among the hardest hit, and with an economy that thrives on producing high-value products, protected by intellectual property rights and trademarks, Italy is especially vulnerable.

As well as examining the impact of trade in fake Italian products, the report also looks at the impact on Italy of imports of counterfeit goods. It finds that fake imports were worth over 10 billion euros, or 3% of imports, in 2013 and resulted in foregone domestic sales by Italian wholesalers and shops of around 7 billion euros. The fake items were imported mainly from China (50%) and Hong Kong (29%), followed by Greece (6%), Singapore (4%) and Turkey (2%).

The combination of trade in fake Italian products and imports of counterfeit goods resulted in a loss of public revenues in Italy equal to 10 billion euros, or 0.6% of Italian GDP. Counterfeiting and piracy also led to the loss of at least 87,000 jobs in Italy in 2013, equivalent to 2% of the country’s full-time equivalent employees.

The highest losses in sales, in euro terms, in the Italian wholesale and retail sectors due to counterfeit and pirated imports in 2013 were for high-tech electronic, electrical and optical products, followed by clothing, footwear, leather and related products. In terms of market share, the biggest losses were in the watch and jewellery sector, where the counterfeit market caused a 7.5% loss in sales.

The report shows that around half of the fake goods smuggled into Italy in 2013 were sold to consumers who were aware they were buying fake products, with the remaining share purchased unknowingly. The share of fakes bought knowingly in Italy ranges from 15% from food items to 60% for watches and IT and communications devices.

The OECD is working with governments to address gaps in regulation and poor law enforcement that enable counterfeit trade, largely run by organised crime gangs, to flourish.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

UN chief welcomes agreement by rival leaders in South Sudan, as a step towards ‘inclusive and implementable’ peace

Europe rethinking its severe austerity policies

These countries are home to the highest proportion of refugees in the world

‘Complacency is still strong’ over stopping genocide, says top UN adviser

Finland has giant supermarkets that only stock second-hand goods

Our idea of what makes a company successful needs to change. And it starts with making waste expensive

Meet the Junior Enterprise network at JEWC 2014!

Is there a drug for every disease?

Appreciation of euro to continue

Veteran public official from Portugal elected to lead UN migration agency

Parliament approves key directive regulating professional qualifications

EU budget: Reinforcing Europe’s cultural and creative sectors

India’s economy is an ‘elephant that is starting to run’, according to the IMF

Liaison Officer – 2020

This app uses augmented reality to rewrite ‘herstory’

To entrepreneurship and beyond!

A Sting Exclusive: “Doing ourselves a favour”, Vice President Dombrovskis underscores that this time growth has to come from within the EU

Greater support needed for refugees and migrants from Venezuela – UN

UN chief welcomes G20 commitment to fight climate change

India m2m + iot Forum Hosts Successful 4th Editions of India Smart Cities Forum and India Smart Villages Forum

One small flight for a drone, one ‘big leap’ for global health

“Decisions taken in the coming weeks will shape Europe’s experience of the internet”, Joe Mcnamee from EDRi says live from European Business Summit 2015

May a parody constitute a copyright infringement? European Court of Justice to give the answer

A Sting Exclusive: “Seize the opportunity offered by Africa’s continental free trade area”, written by the Director General of UNIDO

EU Parliament: Follow the fraudulent money and confiscate it

Vaccine hesitancy: a pregnancy related issue?

I have a rare disease. This is my hope for the future of medicine

Trump ‘used’ G20 to side with Putin and split climate and trade packs

Global Trade Identity can be the cornerstone of paperless trade

Saudi woman seeking asylum in Thailand ‘now in a secure place’ says UNHCR

What do Europeans believe about the crisis and the possible way out?

Social Committee slams the 28 EU leaders for false promises

‘No country, no region’ can tackle global challenges alone says UN’s Mohammed

More urgency needed to help increasing numbers ‘locked out’, before 2030, says UN’s Bachelet

EU Facility for Refugees in Turkey: third annual report shows continued vital and tangible support for refugees and their host communities

ECB should offer more and cheaper liquidity if Eurozone is to avoid recession

Russia and the West to partition Ukraine?

Opening Remarks by H.E. Ambassador Yang Yanyi, Head of the Chinese Mission to the EU at the Chinese Fashion Night

Is the EU denying its social character favouring a banking conglomerate?

Despite progress towards peace, Afghanistan facing ‘daunting challenges’ ahead of presidential vote

Ecofin: ‘The Friday battle’ for the banking union

MEPs call for EU Magnitsky Act to impose sanctions on human rights abusers

Worth going ‘extra mile’ for a new Syrian constitution, UN envoy urges

Canada needs to increase foreign aid flows in line with its renewed engagement

The Eurogroup has set Cyprus on fire

Towards the Rise of the United States of the Atlantic?

Electronic or conventional cigarettes – which is safer?

5 things you need to know about water

European Youth Forum celebrates 20 years of fighting for youth rights

EU prolongs economic sanctions on Russia by six months

Voices of young climate action activists ‘give me hope’ says UN chief

European Citizens’ Initiative: Commission registers ‘Mandatory food labelling Non-Vegetarian / Vegetarian / Vegan’ initiative’

Japanese banks to move their European HQ from London to Frankfurt after Brexit

A young student discusses the determinants of migration in the European Union

UN welcomes Angola’s repeal of anti-gay law, and ban on discrimination based on sexual orientation

Humans account for only 0.01% of life on Earth – but our impact has been immense

MEPs back update of rail passenger rights across EU

LED lights could stop turtles and birds from drowning in fishing nets

We need a global convention to end workplace sexual harassment

How to have a good Fourth Industrial Revolution

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s