From counterfeit goods and wildlife trafficking to tobacco smuggling and the trade in illegal drugs, illicit trade threatens environmental protection, public health, and economic fairness. The rise in fentanyl smuggling, in particular, has had devastating consequences for health systems and communities worldwide. Criminal actors constantly adapt their methods, taking advantage of digital platforms, weak enforcement zones, and geopolitical instability.
Illicit trade
Illicit trade refers to the illegal production, movement, and sale of goods and services, spanning activities such as the trade in counterfeit goods and cultural artefacts, smuggling, wildlife trafficking and illegal logging. These operations, often run by criminal networks, exploit global supply chains and trade infrastructure, undermining public safety, weakening institutions, eroding the rule of law, and reducing tax revenues. Illicit trade distorts markets, harms consumers, and presents a serious governance challenge that transcends borders and sectors. The OECD works with governments, international organisations, and private sector partners to map illicit trade risks, strengthen enforcement, and design policies that uphold the integrity of global trade.
Key messages
Illicit trade fuels organised crime, corruption, and money laundering. It places a disproportionate burden on developing economies, while undermining consumer trust and national security.
Tackling illicit trade means improving cross-border cooperation, investing in enforcement capabilities, and promoting data sharing between customs, financial intelligence units, and other regulatory bodies.
Illicit trade defies simple categorisation. Criminal actors ignore legal and regulatory boundaries, seeking maximum profit through complex, multi-faceted violations. A single product can be counterfeit, tax-evading, dangerous to consumers, and environmentally hazardous, all at once. This layered complexity makes it difficult not only to measure the true scale of illicit trade, but more critically, to enforce laws and coordinate efforts across customs, tax, health, and environmental authorities. The magnitude of the problem is staggering: Trade in counterfeit goods alone was estimated at USD 467 billion in 2021.
Context
Crises as catalysts for criminal expansion
Criminal networks are quick to exploit global crises as opportunities for expansion. Whether during the COVID-19 pandemic, armed conflicts, or trade tensions marked by tariff escalations, illicit actors have leveraged disruptions in supply chains, regulatory gaps, and diverted enforcement resources to intensify their operations. These periods of instability provide fertile ground for illicit trade to flourish, making it even more urgent for governments to remain vigilant and coordinated.
