ARA leading the nation to tackle illicit trade

WITH UP TO 15 percent of global Gross Domestic Product (GDP) lost each year to illicit trade, the Australian Retailers Association (ARA) believes more needs to be done to combat such a severe issue.

According to the World Economic Forum, US$2.2 trillion worth of global GDP is lost a year, due to organised crime and corruption.

To counter this serious issue the ARA have been working with various government organisations and associations forming the Australians to Stop Counterfeiting and Piracy (AUCAP) industry group to stop the illegal trade in consumer goods.

The ARA and AUSCAP have been working closely together recently commissioning Chris Clague, managing editor Asia and global editorial lead of trade and globalisation, to develop The Global Illicit Trade Environment Index to evaluate 84 nations around the world and their efforts in combating this scourge on the world’s economy and what we can do better.

Russell Zimmerman, executive director of the ARA, said this progressive report proves Australia is tracking well in its fight against illicit trade due to the country’s strong policy implementation.

“Australia’s approach to tackling illicit trade were highlighted in this latest Index, due to the success of the Government’s policy to tackle the $2 trillion global black market,” Mr Zimmerman said.

“Our recent initiative to combat the illicit tobacco trade, whose global value is some $35 billion annually, means Australia is well placed to support the Asia-Pacific region’s otherwise, frankly, weak performance in areas relating to Government policy.”

Although Australia received the highest score in government policy in the Asia-Pacific region, Mr Clague believes there is much to be done to build a better environment and prevent illicit trade.

“Illicit trade affects businesses, people, nations, and in the present transnational environment, and what the Index shows is that while some nations are striding forward, others are falling behind,” Mr Clague said.

"By taking lessons from the nations that have been successful, approaches to illicit trade can be strengthened, improving the situation from a business and taxation perspective.”

The ARA believes this new report demonstrates that Australia can, and should be keeping its foot on the throat of illicit trade, spreading its experience and lessons learned with international trade partners.

“The Index applauds our domestic accomplishments, but points to a lot more work ahead to build a global, legal trade system that works,” Mr Zimmerman said.

“An Australia that is strong against illicit trade, that supports its region to be the same, is a safer and more prosperous Australia for all.”

Report author, Chris Clague, was in Canberra on Monday 25 June to launch the report at Parliament House and discuss Australia’s role in shaping the progress of illicit trade in the Asia-Pacific region. To access The Global Illicit Trade Environment Index click here.

 

About the Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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