Trade in counterfeit goods costs UK economy billions of euros

Boris

Mr Boris JOHNSON, UK Prime Minister. Copyright: European Union

This article is brought to you in association with OECD.


The global trade in fake goods, from cosmetics to car parts, is costing the UK economy billions of dollars a year in forgone company sales, overpriced products and tax revenues, and was behind more than 86,000 lost jobs in 2016, according to a new OECD report.

Trade in Counterfeit Products and the UK economy estimates the value of counterfeit and pirated British goods sold worldwide at GBP 16.2 billion in 2016, up from GBP 13.4 billion in 2013 and equivalent to 3.3% of UK manufacturing sales. UK goods particularly targeted by counterfeiters include perfumes, cosmetics, clothing, footwear, leather goods, telecoms equipment, electronic goods, cars and motorbikes.

In terms of UK imports, the report estimates that fake goods imported to the UK were worth GBP 13.6 billion in 2016, equivalent to 3% of genuine imports, and up from GBP 9.3 billion in 2013. The most common imported fakes include mobile phones and accessories, clothes, footwear, handbags, and games. This fake trade led to estimated forgone sales by UK businesses of GBP 9.2 billion, or 2.7% of total sales in the wholesale and retail sector.

Earlier OECD analysis of customs seizures from around the world has shown that global trade in counterfeit goods was worth over half a trillion dollars in 2016, or 3.3% of global imports. As well as economic losses, counterfeit trade exposes consumers to health and safety risks of substandard products, from pharmaceuticals to electronic goods. The UK is one of the top destinations for counterfeit goods just behind the United States, Saudi Arabia and Germany.

More than half of the counterfeit and pirated goods imported to the UK were bought by people who knew they were buying fakes. Most fake imports to the UK come from China, Hong Kong, Turkey, India, Pakistan and Bangladesh.

The combination of trade in fake British products and UK imports of counterfeit goods also hurt public finances as it resulted in forgone tax revenues from the retail and wholesale sector plus UK rights holders of GBP 4 billion.

“These findings clearly show the need for ‎continued vigilance and for the strengthening of measures to counter illicit trade in the UK and abroad. Good governance is an essential element of this equation. Countries need to work together if they want to win the fight against illicit trade and against all other illicit activities linked to it”, said OECD Public Governance Director Marcos Bonturi.

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.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

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

European Union to host Brussels V Conference on Syria

Business should be joyful – just ask the sports world

Youth Parliament to finalise millennials´ priorities for future of the EU

Black Lives Matter – for Pakistan’s Sheedi community too

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

Parliament in favour of lifting visa requirements for Kosovars

A new generation of women leaders is making waves in the Arab world

Here are five ways we can make mental healthcare better

ECB embarks on the risky trip to Eurozone banking universe

How blockchain can manage the future electricity grid

This is how COVID-19 is affecting informal workers

Recovery and Resilience Facility: Germany and Greece submit official recovery and resilience plans

Corruption undermines democracy and contributes to instability, warns senior UN anti-crime official

Von der Leyen on EU long-term budget: our opportunity to make Europe fit for the future

During the coronavirus pandemic, we must fight for LGBTQ rights more than ever

Closing the gaps in accelerating women’s rights : the role of medical students.

Banking on sunshine: world added far more solar than fossil fuel power generating capacity in 2017

MEPs call for better protection of migrants from human rights violations

Draghi, Letta: All Eurozone countries must be able to borrow like Germany

State aid: Commission approves market conform asset protection scheme for banks in Greece

Palliative care and Universal Health Coverage: how to advocate for the inclusion of palliative care in UHC

United States: UN human rights office welcomes California moratorium on death penalty

A Valentine’s Special: heart has nothing to do with it, it’s all Brain

Bringing justice to the people: how the UN is helping communities deal with disputes in remote and dangerous areas

Consumers are getting more complex. Brands need to keep up to survive

Can privatisation be the panacea for the lack of growth in Europe?

“Leaked” TTIP document breaks post 8th negotiations round silence and opens door to critics

EU-Russia relations: the beginning of a warmer winter?

This robot boat delivered a box of oysters in a breakthrough for unmanned shipping

Here are three key ways that data analytics can improve the workplace

Eurozone dignitaries play with people’s life savings

These companies can recycle nearly anything, from cigarette butts to fax machines

Who is to pay for Trump’s trade war against China?

UN Security Council calls for South Sudan leaders to speed up action on peace deal

The banks want now free capital from taxpayers

Greece to stay in the euro area but the cost to its people remains elusive

A guide to thriving in the post-COVID-19 workplace

7 ways business can be agents for peace

Syria: Why did the US-Russia brokered ceasefire collapse? What does the duo care for?

GSMA Mobile 360 Series – Latin America, in association with The European Sting

Can we crack the hydrogen puzzle this time around?

The hazards of “heroism” in the time of COVID-19

These six intelligences will drive smart leadership in disrupted times

Why does death prefer to hold a scythe rather than my hand?

EU: All economic indicators in free fall

COVID-19 will hit the developing world’s cities hardest. Here’s why

COVID-19: Revised rules to encourage banks to lend to companies and households

UN chief condemns attack in south-west Iran which killed dozens

India is now the world’s 5th largest economy

‘We will not give up on looking for peace for South Sudan’: UN deputy chief

“Mental health in times of a pandemic: what can each individual do to lessen the burden”

UN chief urges Hamas and Israel to ‘step back from the brink of another devastating conflict’ in Gaza

The real economy is not a side event in the global decarbonization effort

Deutsche Bank again in the middle of the US-EU economic skirmishes

3 lessons from India in creating equal access to vaccines

Essential services on verge of shutdown in Gaza as emergency fuel set to run out

Why novels deserve a spot on your post-pandemic bookshelf

‘Are we ready for the age of disruption?’, Thailand’s Foreign Minister asks UN Assembly

3 ways to fix the way we fund humanitarian relief

These 5 global cities are leading the charge to a renewable future

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