A new report by the EUIPO and OECD provides evidence of the correlation between illicit trade in counterfeits and labour exploitation.

The report, “From Fakes to Forced Labour” was published on 20 January and is available on EUIPO’s website here (PDF). EUIPO also hosted a webinar on the topic, which can be viewed here.

The report is based on descriptive evidence, correlation analysis and econometric modelling. It found that: “Countries more frequently identified as sources of counterfeit goods tend to display higher levels of child labour – including hazardous forms – , greater prevalence of informal employment, longer working hours, weaker labour protections, and higher incidence of fatal occupational injuries. Positive correlations also emerge between the value of counterfeit exports and the prevalence of forced labour.”

Econometric modelling suggests that a one-percentage-point increase in the prevalence of forced labour is associated with an estimated 0.0076% increase in the value of counterfeit trade.

The report makes a number of policy directions, including:

• combining strengthened labour protections,
• enhanced trade-enforcement tools,
• improved data availability, and
• responsible business conduct.

It states: “Understanding and acting on the labour-abuse component of trade in counterfeits is crucial not only for worker protection and market integrity, but also for undermining the criminal groups that profit from it.”

The MARQUES Anti-Counterfeiting and Parallel Trade Team is studying the report and may provide further analysis soon.

The picture shows the cover of the report.