This workshop focused on key issues related to Regional Trade Agreements (RTA) and the environment. It had three main objectives: (i) to take stock of current experience and insights on RTAs and the environment from different stakeholders, and to establish a stakeholder dialogue on this topic; (ii) to investigate how RTAs can serve as a vehicle to advance a resource efficient and circular economy transition; and (iii) to explore the potential of RTAs in addressing the nexus of illegal trade and environmental crime

1. GOVERNANCE FRAMEWORKS
TO COUNTER ILLICIT TRADE
Piotr Stryszowski
11 June 2021

2. • Illicit Trade : growing, global threat
• OECD Task Force on Countering Illicit Trade (TF-CIT):
Data: key inputs from enforcement officials
Background
EVIDENCE
GOVERNANCE
GAPS
MODERN
POLICY
SOLUTIONS

3. Background

4. Illicit trade
• Often: low risk – high reward
• Huge magnitude
• Health, safety and environmental risks.
• Virtually all economies on all continents
involved.
• Complex global trade routes.
• Abuse of modern, logistical solutions
Evidence

5. Evidence  Governance gaps
• Complex trade routes
• Quantitative analysis to provide more detailed and
precise information about the conditions that influence
economies’ propensities to engage in illicit trade.
• Sets of measures:
– production facilities
– governance indicators
– Free Trade Zones
– trade facilitation policies
– logistic capacities and facilities
Conditions

6. 1. Production facilities (manufacturing, minimum wage, annual
paid leave per worker…)
2. Governance indicators (control of corruption, irregular
payments and bribes, quality of IP protection)
3. Number of special zones (number of FTZ)
4. Logistic facilities (e.g. ability to track and trace consignments
, ease of arranging competitively priced shipments , efficiency
of customs clearance process  RTAs)
5. Trade-related measures (e.g. involvement of trade
community, trade information availability, discipline on fees and
charges  RTAs)
Conditions

7. No silver bullet
None of the analysed factors can alone explain the
phenomenon of illicit trade.
It is the combination of these factors that results in
emergence of important nodes of illicit trade
networks.
Conditions

8. Misuse of good instruments
Many of analysed factors (e.g. good logistical
facilities) can be very beneficial for licit trade flows.
In some cases it is the misuse of these facilities
that in some economies might result in higher
flows of illicit trade.
It greatly depends on a number of governance-
related indicators.
Conditions

9. Good governance is the key
Governance indicators (corruption, IPR enforcement)
in addition to their direct effect, also multiply the effects
of other elements (FTZs, quality of logistic facilities or
trade facilitation policies)
Good governance is a catalyst that greatly enhances
(or deters) the effects that other elements have on
illicit trade.
Conditions

10. Piotr.STRYSZOWSKI@oecd.org
OE.CD/TFCIT