From: Middle East Strategic Perspectives
Illicit trafficking is a global threat. It concerns a wide range of merchandises including weapons, drugs, pharmaceutical products, software, luxury products, tobacco, in addition to human trafficking. Benefits from illicit products could be partially or, in certain cases, entirely used to fund conflicts and terrorist acts.
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Illicit Tobacco trade: contraband and counterfeiting
Whether contraband (original products purchased outside the regulated supply chain to avoid taxation) or counterfeiting (products not following the law and the manufacture’s quality norms), illicit tobacco trade (10.7% of global cigarette sales) makes cigarettes cheaper and more accessible, and, as a result, increases its consumption among low-income groups, particularly teenagers and youth.
Beside the health threat, illicit tobacco trade reduces governments’ revenues and funds criminality, terrorism and conflicts. The consequences are an increase in poverty rates and health inequalities in low- and middle-income countries, being the target of smugglers. This is particularly true for the MENA region where state institutions are weak and law enforcement often ineffective.
