Global scourge of organised crime and terrorism. On 10 March, Brussels hosted the first Global Anti-Counterfeit Summit. At the event, the Authentics Foundation organised an exhibition of bogus products and compared authentic products with those that had been counterfeited.
The star of the show was a Ferrari car confiscated in Thailand (some of the internal parts of which were made of compressed sawdust) but this was, above all, more curiosity than anything else; other discoveries were much more worrying. Visitors witnessed with their own eyes what they already knew, namely, that most counterfeiting does not consist of luxury products (watches, perfumes, ladies' handbags) or even pirated films or toys. Since organised crime discovered that counterfeiting is more profitable than drug trafficking or trafficking women, it has undergone a fundamental changed. It has invested in medicines, cosmetics, even canned food for children. This is no mere cottage industry, it has provided itself with the resources to make bogus products on a mass scale, which include spare parts for planes, surgical prostheses and other hi-tech products, sometimes with tragic consequences. The Authentics Foundation's awareness campaign has recorded the deaths of 365 children killed by a cough medicine consisting of 60% anti-freeze, as well as disasters provoked by a counterfeited brand of toothpaste. Who can tell how many plane crashes, whose causes have not been explained, were provoked by counterfeit spare parts?
According to some assessments, 10% of the goods put on the market are counterfeit and worth, according to Interpol, $US 500bn (€400bn according to another calculation, which is much more). According to the World Customs Organisation, one out of seven products sold in the world, is false. Of course, not all bogus products are dangerous, counterfeiters are not all potential murderers; we can recognise false Vuitton handbags or Lacoste T-shirts at a glance, it's almost become a game. In other cases, however, how can a distinction be made, especially when the purchase is made on the internet? The experts affirm that the profits from counterfeiting not only fund organised crime but also terrorism. It's a planet-wide scourge which goes way beyond trade policy quarrels about opening up the markets or protectionism.
Mr Barroso's condemnation. This is also what the president of the European Commission asserted in his speech on 10 March, referred to yesterday in this column. He stressed that counterfeiting generates, “income that can compete with narcotics and weapons trafficking, but at much lower risk”. He also highlighted the increasing role of the internet, especially for bogus medicines. The EU has stepped up its action: in 2006 (the most recent year for which comprehensive details are available), 128 million counterfeit products were seized at the borders, a 70% rise on the previous year. Mr Barroso, however, insisted, above all, on the demand that border controls and other forms of enforcement are accompanied with strong and efficient action at a level of consumers, who have to be informed about the dangers. Mr Barroso quoted several examples: children's toys containing led residues 20 times over the permitted maximum; toasters that cause electric shocks or fires and so on. He stated that “There are no accidents or negligence here, but well calculated criminal strategies with devastating effects on our economies, on our health and environment, on our safety and security. This is the message we have to start sending to our citizens”.
Third countries cooperating. We can see to what extent the accusations or suspicions of protectionism in the dossier are unjustified or negligible. Protecting Europe against the serious menaces mentioned has nothing to do with trade policy: it is an obligation. Mr Barroso is not advocating confrontation with the third countries involved but rather, collaboration. While indicating the countries of production (China largely at the head of them) or transit (particularly the United Arab Emirates), he acknowledged the increasing collaboration from the Chinese authorities in the fight against counterfeiting and respect for intellectual property, as well as the determination of other governments. Because his subject essentially focused on external border control, Mr Barroso left to one side the fact that criminals in certain Union countries (Italy and a few recent member states) are actively participating in the manufacturing or trade in counterfeit goods.
As part of the continued overview on further reflections on European trade policy, this column will tomorrow raise the delicate question of the trade-related aspects of company relocations.
(F.R.)