Basics

Illicit trade is a global challenge with sweeping economic, social, and political consequences. Encompassing activities from counterfeit goods and tax evasion to drug trafficking and forced labor, it undermines legitimate business, draining an estimated $2.2 trillion annually from the global economy, and fuels corruption, terrorism, and organized crime. Beyond the economic toll, illicit trade endangers consumers through unsafe counterfeit products, weakens governance by incentivizing corruption, and jeopardizes global sustainability goals by diverting resources away from public goods and development. International organizations such as the OECD, INTERPOL, and WTO coordinate diverse strategies to address these challenges, from strengthening transparency and enforcement to reducing trade barriers and promoting public-private partnerships. Together, international efforts highlight the complexity of illicit trade and the need for sustained, cooperative action to combat its effects.