COUNTERFEIT goods account for an estimated USD 467 billion in global trade, constituting a persistent challenge for the global economy. They also pose serious risks to people and labour markets. 

A new OECD/European Union Intellectual Property Office (EUIPO) report From Fakes to Forced Labour: Evidence of Correlation Between Illicit Trade in Counterfeits and Labour Exploitation looks at the links between counterfeit goods trade and labour exploitation. The report discusses policy responses aimed at protecting vulnerable workers while reducing the economic footprint of counterfeiting.

By integrating labour market indicators into the analysis of illicit trade, the report identifies strong associations between the intensity of counterfeit goods trade and weak labour market conditions. Countries identified as sources or transit points for counterfeit goods tend to exhibit higher levels of labour exploitation, including child labour, informal employment, longer working hours, weaker labour protections, and a higher incidence of fatal occupational injuries. The evidence presented suggests that poor labour protection creates conditions in which counterfeiters can thrive and exploit workers. 

The report calls for policies to strengthen labour standards and tackle trade in counterfeit goods to go hand in hand. It highlights the need for comprehensive policy actions, including closer integration of customs enforcement with labour inspections and anti-trafficking measures, the promotion of responsible business conduct to support trade integrity and compliance with labour standards, and further analysis to assess the risks this interlinkage poses to people and the economy.