Globalisation and free trade are strong drivers of economic growth. They have also opened up new opportunities for illicit trade activities. Criminal networks benefit from these opportunities at the expense of public safety, human rights, legitimate business activity and sustainable environmental resources. Consumers rely on effective institutions and law enforcement to protect them from the risks of illicit goods. Businesses also rely on them to counter and deter illicit markets. Trade in counterfeit goods undermines the legitimate competitive advantage of rights holders, and hampers innovation, employment and long-term economic growth. Illicit trade may also ultimately undermine the rule of law and citizens’ trust in government.

Transnational criminal networks profit from trafficking and illegal trade in narcotics, arms, persons, tobacco, counterfeit consumer goods, and wildlife. Billions of dollars from these activities flow through the global economy each year, distorting local economies, diminishing legitimate business revenues, eroding social conditions and fuelling conflicts. This report on governance frameworks to counter illicit trade was prepared under the OECD Task Force on Countering Illicit Trade (TF-CIT). It promotes tractable policy reforms and fosters international cooperation aimed at the reduction and deterrence of the risk of illicit trade. It draws on a network of specialists from multiple countries and economies, as part of the OECD High Level Risk Forum (HLRF), which works with governments to better understand the full range of complex risks and threats.