Agriculture food and safety
Addressing illicit trade in food and food fraud
The WTO rulebook can be used by members in the fight against illicit trade in food and food fraud, in particular the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and the Agreement on Technical Barriers to Trade (TBT Agreement). This chapter explores the various definitions of food fraud, providing an overview of the main food products that have been the target of fraud, and the most notable incidents that have arisen over the past two decades. Building on the outcomes of the WTO’s Annual Agriculture Symposium in December 2023 dedicated to this topic, the chapter asks whether it is time for a more explicit conversation at the WTO.
Mapping the negative impacts of illicit trade in agri-food and beverages against the United Nations Sustainable Development Goals
Agriculture, forestry and fishing contributed 4.3 per cent of global GDP in 2022 and account for large shares of the GDP for developing economies. A healthy agricultural sector is vital to eradicating hunger and poverty. Illicit trade in agri-food and beverages, in its various manifestations, undermines sustainable farming, limits crop yields and jeopardizes the delivery of fair, safe and sustainable food supplies. This chapter examines how this form of illicit activity threatens the achievement of 11 of the United Nations Sustainable Development Goals (SDGs). Examples from illicit trade in food commodities, processed foods and pesticides demonstrate how fraud and failures in the food supply chain hinder progress on the vital goals to eradicate hunger and poverty, improve health and well-being, strengthen consumers’ ability to make educated and eco-friendly decisions, and generate sustainable economic growth.
Foreword
The WTO has long been committed to the fight against illicit trade, which undermines legitimate business activity, fosters corruption and denies governments potential tax revenue needed to improve socioeconomic conditions. Under the leadership of Director-General Okonjo-Iweala, the WTO Secretariat has been examining how WTO rules help members to resolve some of the challenges posed by such illicit trade.
Bringing criminal justice to illicit trade in food and food fraud
This chapter presents an overview of food fraud cases through a criminal justice lens, primarily focusing on the varied tactics employed by criminals to infiltrate the legitimate food supply chain and market fraudulent food products to unsuspecting consumers. These deceptive practices typically involve the manipulation of legal entities and operations. Our findings emphasize the need for a multifaceted criminal justice response, one that considers the complex operations of these criminals to devise effective countermeasures. The role of emerging technologies in facilitating law enforcement investigations is also highlighted, underscoring their potential to support successful criminal investigations and prosecutions.
WTO rulebook and combating illicit trade in food and food fraud
As the only global organization dealing with the rules of international trade, the WTO has a key role to play in members’ efforts to tackle illicit agri-food trade through its rules and institutional framework. Specifically, the WTO offers members a variety of tools and best practices, as well as the opportunity to exchange information and implement policies both within and at the border, that can assist them in combating this phenomenon. This chapter examines the most relevant parts of the WTO rulebook to fight the trade in illicit agri-food, and the provisions which allow WTO members to derogate from commitments when fulfilling legitimate public policy goals. This chapter highlights that the lack of disciplines expressly addressing illicit agri-food trade does not prevent the WTO agreements from providing members with several important tools that they can use to tackle the problem.
Introduction
This is the first WTO publication on illicit trade in food and food fraud. It includes contributions from participants in the WTO’s Annual Agriculture Symposium, held in Geneva, 11-12 December 2023, which explored this topic. At the Symposium, prominent experts discussed the various forms and definitions of illicit trade in food and food fraud, the links to international trade and ways to combat the phenomenon effectively.
Regulatory solutions and food systems thinking to counter food fraud in supply chains
All of the people and activities that play a part in growing, transporting, supplying and consuming food – known as the (agri-)food system – need to be involved in addressing the complexities of food fraud. Trade globalization, the lengthening of food supply chains, the fast growth of e-commerce of food and vast informal food economies all provide new possibilities for food fraud. This chapter presents different strategies for policymakers and regulators to counter food fraud – from regulatory strategies to intersectoral collaboration, private-sector engagement and consumer information. It addresses the status of food fraud discussions in various intergovernmental bodies and advocates for broad food systems thinking and strengthened cooperation at the global, regional and national levels.
Estados Unidos - Medidas que afectan a la producción y venta de cigarrillos de clavo de olor
El 02 de septiembre de 2011, la OMC hizo público el informe del Grupo especial sobre el caso “Estados Unidos - Medidas que afectan a la producción y venta de cigarrillos de clavo de olor”.
Communautés Européennes - Regime applicable à l’importation, à la vente et à la distribution des bananes
Le 09 septembre 1997, l’Organe d’appel a publié son rapport sur l’affaire “Communautes Europeennes - Regime applicable a l’importation, a la vente et a la distribution des bananes”.
European Communities - Regime for the Importation, Sale and Distribution of Bananas
Complaints by Ecuador, Guatemala, Honduras, Mexico and the United States. The complainants in this case other than Ecuador had requested consultations with the European Communities on the same issue on 28 September 1995 (DS16). After Ecuador’s accession to the WTO, the current complainants again requested consultations with the European Communities on 5 February 1996. The complainants alleged that the European Communities’ regime for importation, sale and distribution of bananas is inconsistent with Articles I, II, III, X, XI and XIII of the GATT 1994 as well as provisions of the Import Licensing Agreement, the Agreement on Agriculture, the TRIMs Agreement and the GATS.
Chile - Sistema de bandas de precios y medidas de salvaguardia aplicados a determinados productos agrícolas
El 03 de mayo de 2002, la OMC hizo público el informe del Grupo especial sobre el caso “Chile - Sistema de bandas de precios y medidas de salvaguardia aplicados a determinados productos agrícolas”.
Estados Unidos - Trato fiscal aplicado a las “empresas de ventas en el extranjero”
El 30 de agosto de 2002 la OMC hizo público el informe arbitral sobre el caso “Estados Unidos - Trato fiscal aplicado a las “empresas de ventas en el extranjero””.
Communautés européennes - Subventions à l’exportation de sucre
Le 15 octobre 2004, l’OMC a publié le rapport du Groupe spécial dans l’affaire “Communautés européennes - Subventions à l’exportation de sucre”.
European Communities - Measures Affecting the Importation of Certain Poultry Products
On 24 February 1997, Brazil requested consultations with the EC in respect of the EC regime for the importation of certain poultry products and the implementation by the EC of the Tariff Rate Quota for these products. Brazil contended that the EC measures are inconsistent with Articles X and XXVII of GATT 1994 and Articles 1 and 3 of the Agreement on Import Licensing Procedures. Brazil also contended that the measures nullify or impair benefits accruing to it directly or indirectly under GATT 1994.
Estados Unidos - Medidas de salvaguardia definitivas impuestas a las importaciones de gluten de trigo procedentes de las Comunidades Europeas
El 22 de diciembre de 2000, el Órgano de Apelación hizo público el informe sobre el caso “Estados Unidos - Medidas de salvaguardia definitivas impuestas a las importaciones de gluten de trigo procedentes de las Comunidades Europeas”.
États-Unis - Traitement fiscal des “sociétés de ventes à l’étranger”
Le 08 octobre 1999, l’OMC a publié le rapport du Groupe spécial dans l’affaire “États-Unis - Traitement fiscal des “sociétés de ventes à l’étranger””.
Estados Unidos - Determinadas prescripciones en materia de etiquetado indicativo del país de origen (EPO) - Recurso 1
El 20 de octubre de 2014 la OMC emitió los informes del Grupo Especial sobre el cumplimiento en las diferencias “Estados Unidos — Determinadas prescripciones en materia de etiquetado indicativo del país de origen (EPO) — Recurso del Canadá y México al párrafo 5 del artículo 21 del ESD” (DS384 y DS386).