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Trade in Counterfeit Goods and Free Trade Zones

Evidence from Recent Trends

image of Trade in Counterfeit Goods and Free Trade Zones

This study examines the potential for the misuse of Free Trade Zones (FTZs) for trade in counterfeit and pirated goods. It presents the evolution of the FTZs and the international legal framework in which they operate, the reasons for establishing such zones and the benefits they offer businesses, and, finally, the role these zones play in fuelling trade in counterfeit and pirated goods. It also analyses the links between the FTZs and trade in counterfeit products, and provides data on these links.

 

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Conclusion

This report has quantitatively and qualitatively examined the economic role played by Free Trade Zones, especially in the context of trade in counterfeit and pirated goods. It has done so by analysing the economic rationales for Free Trade Zones from the perspectives of both host countries and industry, and it has conducted an econometric analysis of the role that the FTZs play in spurring trade in counterfeit and pirated goods.

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