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Analysis of Illicit Trade in Food and Food Fraud (WTO Report, 2024)

Analysis of Illicit Trade in Food and Food Fraud (WTO Report, 2024)
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The publication draws on the expertise of the WTO Secretariat, the Food and Agriculture Organization of the United Nations, the International Seed Federation, SSAFE — a non-profit organization for food safety, the Transnational Alliance to Combat Illicit Trade and the United Nations Interregional Crime and Justice Research Institute.

Illicit trade in food and food fraud, highlighting the various methods used by criminals to infiltrate the legitimate food supply chain and market fraudulent products. Key points include:

Technical Barriers to Trade (TBT) Agreement: This agreement covers standards and technical regulations for products, including conformity assessment procedures (CAPs) to verify quality and attributes. It also promotes regulatory harmonization across members by requiring the use of relevant international standards.

Food Fraud: Illicit traders exploit weaknesses in national regulatory systems to sell substandard or unsafe products. Proper labeling helps prevent deceptive and fraudulent practices, but labels can be tampered with. The TBT Agreement promotes regulatory harmonization to address these issues

Case Studies: Examples of food fraud include the sale of adulterated food products, "kuttu ka atta" in Delhi which has been sending a lot of its consumers to the hospital and the distribution of counterfeit and adulterated food products, including pesticides and beverages in the food item.

Food Safety Culture: Strengthening food safety culture across the food industry is crucial. Organizations like SSAFE provide resources and tools to help food businesses implement strong food safety cultures.

International Cooperation: International organizations like the World Customs Organization (WCO) and Europol coordinate efforts to combat food fraud through operations like Operation Opson, which resulted in €30 million worth of seizures in 2022-2023.

Emerging Technologies: Technologies like artificial intelligence are being used to identify suspicious online products and investigate online fraud, helping to prevent further harm to consumers.

Food Fraud Vulnerability Assessment: Tools and training modules are available to help food businesses assess their vulnerability to food fraud and implement measures to prevent it.

Food Safety Standards: Organizations like ISO and CEN provide standards and guides for small and medium-sized enterprises (SMEs) to strengthen food safety practices.

Food Crime Prevention: Initiatives like the SSAFE Lecture Series in Food Crime Prevention and the Industry 4.0 and Food Safety Guide provide resources for food businesses to prevent and address food crime.

Collaboration: Collaboration between law enforcement, the private sector, and technical experts is essential to combat food fraud across international borders.

The Role IP Can Play in Protecting From Food Fraud

Intellectual Property (IP) Protection: IP protection is crucial in preventing food fraud. Criminals often use counterfeit products to deceive consumers, which can lead to serious health risks and financial losses. Strengthening IP protection can help prevent the sale of fraudulent products and maintain consumer trust in the food supply chain

Labeling and Packaging: Proper labeling and packaging can help prevent deceptive practices. However, criminals can tamper with labels, making it essential to implement robust quality control measures and ensure that products are accurately labeled and packaged

Regulatory Framework: A comprehensive regulatory framework is necessary to prevent and combat food fraud. This includes implementing measures such as conformity assessment procedures, sanitary and phytosanitary measures, and technical barriers to trade. Regulatory bodies must work together to ensure that these measures are effective and consistent across borders

Public-Private Collaboration: Public-private collaboration is essential in combating food fraud. This includes working with the food industry, consumer organisations, and law enforcement agencies to share information, best practices, and resources. International cooperation is also crucial in addressing the global nature of food fraud

Investigations and Prosecution: Timely and thorough investigations are critical in disrupting illicit trade in food and food fraud. Law enforcement agencies must work closely with international organizations and other stakeholders to identify and prosecute criminal actors, ensuring that they are held accountable for their actions

Technology and Analytics: Technologies like artificial intelligence and blockchain can help prevent food fraud by improving supply chain visibility, tracking, and authentication. These tools can also aid in detecting and investigating fraudulent activities

Consumer Education: Educating consumers about food fraud and its risks is vital. This includes promoting awareness about the importance of verifying product authenticity and the consequences of consuming fraudulent products

International Cooperation: International cooperation is necessary to address the global nature of food fraud. Organisations like the World Customs Organisation (WCO) and Europol coordinate efforts to combat food fraud through operations like Operation Opson, which resulted in €30 million worth of seizures in 2022-2023

Food Safety Culture: Strengthening food safety culture across the food industry is crucial. This includes promoting a culture of transparency, accountability, and continuous improvement to prevent food fraud and ensure consumer safety

Prevention: Prevention is a more cost-effective strategy than stopping illicit trade in food once it is already underway. Prevention helps ensure consumer safety, maintain product integrity, and preserve brand reputation. It also involves identifying and addressing vulnerabilities in the food supply chain

IP Round-up

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1. India’s stock market value has surpassed $5 trillion for the first time, joining the ranks of the US, China, Japan, and Hong Kong. This milestone follows Prime Minister Narendra Modi’s coalition government securing a third term, ensuring policy continuity in the world’s fastest-growing major economy. The equity market's rapid growth adding $1 trillion in six months is driven by robust economic performance, an S&P Global Ratings upgrade, and strong local investment, particularly from young Indians and domestic funds. Foreign investors, who previously sold off shares, are also showing renewed interest. The NSE Nifty 50 Index hit an all-time high, marking its ninth consecutive year of gains, with smaller and mid-sized companies leading the charge, now representing about 40% of the market’s total value. (Source: Bloomberg)
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2. In response to the ongoing heatwave, traffic police have introduced battery-powered cooling jackets equipped with fans and ice pads, designed to lower body temperature by 3-4 degrees Celsius for up to five hours. These 'AC jackets,' manufactured by Plus Advanced Technologies Ltd., are currently being tested by 13 zonal officers who will provide feedback before wider distribution. (Source: TOI)
Image Source: India Today
3. The Truenat platform, developed by Goa-based Molbio, has been praised at the 77th World Health Assembly in Geneva for its high accuracy in diagnosing various forms of tuberculosis (TB). Launched in 2017, this portable, battery-operated micro-PCR system delivers results in under an hour and can test for over 40 diseases. The Global Fund highlighted India's use of Truenat and handheld X-ray devices as exemplary healthcare solutions. With around 10,000 installations worldwide, including 7,000 in Indian health centres and 1,500 private labs, Truenat has greatly improved TB case detection. Molbio CEO Sriram Natarajan welcomed the recognition, noting its role in early diagnosis and treatment, essential for combating TB, which kills 480,000 Indians annually. Union Health Secretary Apurva Chandra urged continued support from The Global Fund to bolster public health systems, as India accounts for 27% of the global TB burden.. (Source: The Hindu)
Image Source: The Hindu
4. Despite leading the world in patent filings, China struggles to commercialize university-originated inventions, with only 4% converted into industrial applications by 2022. Shanghai Jiao Tong University is pioneering initiatives granting researchers usage rights to patents, resulting in a notable 40% rise in patent transfers and licenses in early 2023. However, legal and bureaucratic challenges, such as fears of state asset loss, hinder commercialization efforts at universities, highlighting the need for systemic reforms and increased private capital participation. (Source: CaixinGlobal)
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5. South Korea and India plan to jointly hold intellectual property rights (IPRs) in manufacturing, energy, and healthcare, as part of their bilateral trade agreement negotiations. During the fourth round of India-Korea Comprehensive Economic Partnership Agreement (CEPA) talks, a Futures Group of experts was established to focus on joint R&D in IoT, automotive manufacturing, renewable energy, water management, and medical equipment. Trade between the countries reached $16.82 billion in 2016-17, favouring South Korea with a $8.3 billion surplus. Significant investments have been made by both sides, with Korean investments in India nearing $3 billion and Indian investments in South Korea exceeding $2 billion (Source: EconomicTimes)
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In today's IP Wave WTO Report analysis is written by Prof Amogh Dev Rai, Director Research at Advanced Study Institute of Asia (ASIA), IP Round-up by Shivani Singh and Technical assistance for audio generation by Khushi Kesari

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