The Manufacterer Newsletter 8.5 x 11 E-MAG

Illicit
Trade
by Ismahieel Ali and Joy Francis
As international trade has expanded
dramatically in the 21st century, so too
illicit trade has grown. The expansion
of this trade has been to infiltrate the
Caribbean region, and more specifically,
Trinidad and Tobago has become the
home to this type of trade. Everyday
life is becoming seriously affected from
counterfeit products to increasing drug
crimes. The effects of this trade range
from economic, environmental, and
social and it is becoming challenging
to curb its impacts.
So what is illicit trade?
The World Economic Forum (WEF)’s
Global Agenda Council on Illicit Trade
defines it as “involving money, goods or
value gained from illegal and generally
unethical activity. It encompasses a
wide variety of illegal trading activities,
including human trafficking, smuggling
of excisable goods and trade in illegal
drugs, as well as a variety of illicit
financial flows”. While the definition is
lengthy, it encapsulates the ‘meat’ of
this trade. We are confronted by this
trade every day.
WEF continues to state that the “value
of illicit trade – primarily the sale of
counterfeit goods – is estimated
at US$ 650 billion worldwide. If we
include money laundering, the number
jumps to an astonishing US$ 2 trillion,
compared to a legitimate global trade
figure of about US$ 10 trillion. The illicit
economy is, worryingly, truly vast”. This
statement from WEF is profound to say
the least and TTMA is of the belief that
this type of trade is becoming more
prominent in our jurisdiction and the
catastrophic effects are widespread.
The worrying fact is that there is limited
information on this type of trade and
this need to change.
The impacts are farreaching…
As previously stated, the risks are
economic, environmental and social.
Firstly, illicit trade and financial flows
reroute money from the legitimate
economy. Environmentally, some of
these trades reduce natural resources
or have other environmentally negative
effects. Socially, the impacts are
enormous. There are the direct effects
of human trafficking and the harm
caused by counterfeit drugs and
medicines.
As previously stated, the impacts are
far–reaching affecting all areas of the
economy and society. For example,
illicit trade and financial flows reroute
money from the legitimate economy. In
a nutshell, illicit financial flows (money
gained from illegal means) are seen
as a major economic impediment
to sustainable development since
exorbitant losses are expected since
a country as a whole and businesses
lose income investment, markets
and legitimacy; and populations are
marginalized and exposed to health
risks. As the saying goes, this is the tip
of the iceberg…
Research in the area of illicit
financial flows generated by one key
transnational organized crime sector,
the global market for cocaine, was
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