Counterfeiting is a real problem...
European institutions, particularly on the European Parliament's legislative level, constantly debate and seek to regulate the use of crop protection tools. The catalogue of available products is getting thinner every year, which has been criticised by farmers. However, making chemical compounds or products illegal does not automatically rid the market of their presence. In fact, the ill effects of prohibition apply to the agricultural sector to the same extent as other consumption areas.
In 2018, the European Union Intellectual Property Office stated that €1.3 billion are lost every year in Europe due to fake pesticides. This translates to €299 million and 500 jobs lost per year in Germany, €240 million and 500 jobs each year lost in France, and €185 million and 270 jobs lost annually in Italy.
In 2018, EUROPOL revealed that some 360 tonnes of illegal or counterfeit pesticides were seized in Europe in a joint effort with the European Anti-Fraud Office (OLAF). Counterfeit pesticides, now estimated to represent 14% of the European crop protection market, pose serious health risks to consumers. They are not subject to the rigorous safety assessments of food safety authorities. Adding to that, untested products can also lead to considerable harvest loss, resulting in less food security for European consumers.
Recent numbers make the 2018 statistics pale in comparison. In 2020, EUROPOL stated that 1,346 tonnes of counterfeits, illegal, and unregulated products had been taken off the market, or the equivalent of 458 Olympic-sized pools, with a total worth of €94 million of criminal profits seized. In the illegal trade raids, one can also notice an uptick in seizures of illegal pesticides, which relates to non-approved products. Year after year, the European Food Safety Authority (EFSA) records the presence of unapproved pesticides in European food. As a result, there have been calls upon member states to increase their inquiries into the imports of non approved pesticides into the European Union. In an effort to tackle this problem at its roots, we believe that a re-evaluation, conjointly with farmers associations, of the approval of these substances is a sensible solution. Suppose the European Union or member states outlaw a chemical substance due to health concerns, yet the ban results in an uptick in illegal trade with absolutely no safety assessment. In that case, a sensible compromise solution that takes into account the worries of producers while respecting the safety of consumers is in order.
Note on the illicit trade with fertilisers: In 2012, the Danish newspaper "Politiken" published an extensive report on the prevalence of illicit trade with fertilisers, which triggered a question to the European Commission about the extent of this problem. In a written answer, the Commissioner in charge replied in July of 2012 that Berlaymont was not aware of illegal trade in this area, and assured the necessary observation and enforcement mechanism were in motion to avoid it. Given the extent of fraudulent trade with organic food and the prevalent spread of fake pesticides, we believe that an investigation into the existence of illicit fertilisers in Europe is opportune.
Illicit trade is a significant challenge for societies in today's globalised world. From cosmetics to medicines and agricultural products, illicit trade is putting millions of consumers around the globe at risk. The scope of the problem is transnational, and, therefore, the cost of misguided policies is very high. Our goal should be to create and sustain the conditions under which there would be no incentive to turn to the black market. This can be achieved by reducing tax burdens, enhancing branding and marketing freedom, introducing harsher penalties for fraudulent trading practices, and ensuring transparency across the EU.