New OECD–EUIPO study reveals strong links between counterfeiting and labour exploitation

BRUSSELS, (UrduPoint / Pakistan Point News / WAM - 21st Feb, 2026) A new joint study by the Organisation for Economic Co-operation and Development (OECD) and the European Union Intellectual Property Office (EUIPO) provides evidence that illicit trade in counterfeit goods is closely associated with labour exploitation, including forced labour, child labour and unsafe working conditions.

The study, ‘From fakes to forced labour: Evidence of correlation between illicit trade in counterfeits and labour exploitation’ shows that countries most frequently identified as sources of counterfeit products tend to have weaker labour-market conditions, such as insufficient labour protections, longer working hours and a higher incidence of fatal occupational injuries.

The findings reveal that weak governance, limited enforcement and social vulnerability create environments where both counterfeiting and labour abuse flourish.

Using global customs seizure data and labour statistics, the report shows that labour exploitation lowers production costs and reduces risks for criminal operators, making illicit activities more profitable. In this context, forced labour and informality emerge as structural enablers of counterfeit production and distribution rather than isolated by-products.

The study calls for more integrated policy responses: combining stronger labour governance with enhanced trade and customs enforcement, improved data collection and closer cooperation between labour, customs and law-enforcement authorities. According to the report, addressing labour exploitation is essential not only to protect workers’ rights but also to disrupt the criminal networks behind the global trade in counterfeit goods.