Illicit Trade in Food and Food Fraud

By The World Trade Organization

International trade in food has helped to reduce global poverty and hunger. However, illicit trade in food and food fraud undermine the global food system and endanger public health. This publication looks into the challenges of combating illicit practices, such as smuggling and counterfeiting, and the role the WTO could play

The publication draws on the expertise of the WTO Secretariat, the Food and Agriculture Organization of the United Nations, the International Seed Federation, SSAFE — a non-profit organization for food safety, the Transnational Alliance to Combat Illicit Trade and the United Nations Interregional Crime and Justice Research Institute.

Contributors examine the topic from their particular area of expertise, discussing how best to address illegal food trade and how the WTO agreements could contribute to tackling illegal practices.

  International trade has helped to reduce global hunger, but food fraud is a growing problem Access to healthy, affordable food is a prerequisite for improving the lives of the poorest. International trade has helped to reduce both global poverty and hunger. However, the resulting complexity of food supply chains makes combating illicit trade in food and food fraud much harder. Increased interconnectivity of supply chains and greater distances between where food is grown and where it is consumed provide more opportunities for illegal activities. Illicit trade in food and food fraud inflict considerable damage to international trade and public health The illicit trade in food and food fraud includes the buying and selling of products to be eaten, drunk or grown that are not what they are claimed to be, that fail to comply with health and other regulations (e.g. on quality) and that are smuggled or otherwise produced or traded outside the legitimate market framework. Illicit trade in food and food fraud inflict considerable damage to international trade and public health. Illicit trade in food undermines international trade by distorting markets, eroding consumer confidence and triggering the imposition of trade barriers due to safety concerns. Simultaneously, it poses significant public health risks through the distribution of counterfeit or substandard products, contributing to the spread of diseases and creating challenges for regulatory enforcement on a global scale. The consumption of contaminated, counterfeited or adulterated food products can result in malnutrition and even death. Illicit trade in food undermines global food security and agri-food value chains Illicit trade in food disrupts legitimate supply chains and limits access to foods by reducing availability and increasing prices. It undermines fair markets and reduces income for legitimate producers, with the most vulnerable communities affected the greatest. The impact of illicit trade in seeds and seed fraud can be significant for farmers, the agri-food value chain and hence global food security. Illegal seed practices also discourage innovation. The integrity of the seed sector can be strengthened through the protection of intellectual property rights and enhancing enforcement to ensure that farmers have access to reliable, high-quality seeds. The WTO rulebook brings a legal framework to international trade in food, helping to combat illicit trade The WTO agreements can be used in the fight against illicit trade in food and food fraud, in particular the Agreement on the Application of Sanitary and Phytosanitary Measures and the Agreement on Technical Barriers to Trade. The WTO rulebook brings a legal framework to the international trade in food, helping to combat illicit trade. The WTO has a unique role in promoting open and legal trade. WTO rules enable members to exercise control over their borders and enforce their trade laws, leaving less room for illegal trade.  

Geneva, SWIT: World Trade Organization 2024. 92p.