Labour exploitation and illicit trade

Illicit trade in counterfeit goods is a large-scale global challenge, accounting for up to USD 467 billion annually. Beyond economic and consumer harms, counterfeiting is closely linked to labour exploitation. This policy brief highlights new OECD evidence showing a robust statistical association between labour abuse and the scale of counterfeit trade. In particular, a one-percentage-point reduction in forced labour—equivalent to around 276 000 people globally—is associated, all else equal, with a decline of more than USD 35 million in the value of counterfeit trade. While these results reflect correlations rather than causation, they point to a tangible “double dividend”: improving labour conditions can go hand in hand with reducing illicit trade. The findings underscore the need for integrated policy responses combining trade enforcement, labour protection and responsible business conduct to address the structural conditions that enable counterfeiting.