THIS CHRISTMAS, beware fake goods.
While the special Anti-Illicit Trade Task Force, or AITTF, established in 2021 has recently stepped up its activities, that alone will not be enough.
There must be a greater focus on the problem, greater public awareness, more mechanisms to report complaints and greater levels of interception and prosecution.
Infringement of intellectual property rights, the trade in contraband goods, the prevalence of counterfeiting and the preponderance of piracy – such things may not be at the forefront of consumers’ minds over the holidays.
But there is a real problem with fake products.
And it has an increasing cost, even if this problem is sometimes well-concealed.
Aurelia Bruce, AITTF secretary, reported $90 million in yearly losses from illegal cigarette and alcohol sales alone at an October 28-29 seminar in Port of Spain’s Customs House.
To put this in perspective: that’s more than the annual recurrent expenditure of the Auditor General’s Department, President’s House, the Public Service Appeal Board and the entire island of Tobago’s Central Administrative Services combined.
And there’s much more to it than that.
The issue extends to a dizzyingly wide range of products. Among them are items such as cleaning agents and pharmaceuticals, like birth control pills, blood pressure medication, weight loss aids and more.
Illicit trade costs the global economy US$2.2 trillion, three per cent of the planet’s marketplace, according to the World Economic Forum.
Interpolating such figures to TT, that could be as much as $850 million in losses each year.
To say this issue is a $90 million problem is, thus, an understatement.
Today’s consumer is savvy and many already have an eye for what is or is not counterfeit.
In fact, some go out looking for less expensive options, including knockoffs, believing this is not only easier on the pocket but does no harm.
But as noted by Ms Bruce, even this has a price.
"Illicit trade undermines trade and decreases revenue and foreign direct investment," she noted. "It can result in a loss of brand integrity not only for the original manufacturers but also for TT if we are seen to be lax about enforcement."
Further, illicit trade can cause job displacement and business closures. Perhaps most disturbingly, it poses health risks.
Unless we can more widely intercept illicit goods and enforce relevant laws, consumers must make responsible choices.
Still, the authorities need to step up their game.
Hosting seminars to raise awareness is a wonderful step. But too many people may fall prey to unscrupulous merchants without hope of any sort of redress. Sometimes, as it relates to medicines, the consequences can be dire.
AITTF needs to work harder to strengthen capacity at enforcement agencies and ministries, enhance collaboration among regulatory bodies and deepen public-private partnerships.
And the State should devote more resources to fighting this scourge to boost consumer confidence and to make competition fairer.
That would
