Counterfeiting and the Illegal Trade in Pesticides And Crop
Protection Products Rocky Rowe Anti-counterfeit Project Manager
International Conference Falsification and other problems in Plant
Protection Products Falenty, Poland, 27 th September 2007 Slide 2
Counterfeiting and Illegal Trade in Pesticides and CPPs Background
Challenges across Europe Industry Initiatives Parallel Trade The
Future Slide 3 Counterfeit and Illegal Pesticides & CPPs
Background Counterfeiting and illegal trade in all manner of goods
and services has been undermining legitimate business for many many
years Today most of us probably own something that has been
counterfeited or faked T-shirts, belts, handbags, sunglasses,
watches, CDs etc Most of these goods can be found at local markets
or being offered by street traders in many locations across Europe.
Slide 4 Counterfeit and Illegal Pesticides & CPPs Slide 5 Slide
6 Background Generally there is a degree of ambivalence to owning
one or two of these goods and even a degree of sophistication. Yet
taking this to the next level ; Counterfeit tyres that blow out
when certain speeds are achieved Break discs that disintegrate in a
critical situation Medicines that dont work or have adverse side
effects Toothpaste that contains unknown harmful ingredients We
adopt a much different attitude Slide 7 Counterfeit and Illegal
Pesticides & CPPs Background Counterfeiting of pesticides and
crop protection products has been a troublesome issue for industry
for some time. Isolated instances usually identified when a crop
fails or the product does not work, and have been dealt with by
individual companies More recently with the growth of chemical
manufacturing capability in countries such as India and China the
growth in counterfeit CPPs has been significant. Much of this
growth is funded by criminal organisations and organised crime.
Current best estimates are that 5-7% of CPPs are counterfeit or
illegal with hotspots ranging from 10-30% Slide 8 Counterfeit and
Illegal Pesticides & CPPs Challenges across Europe Counterfeit
and Illegal CPPs belong to three main categories: Fakes containing
anything from water, talc, to diluted and outdated/obsolete stocks,
including banned or restricted materials. Often using recycled
packaging. Sophisticated, but usually generic products, sold as
legitimate branded products in counterfeit containers and
packaging. Illegal imports of generic products falsely claiming
common origin or otherwise, smuggled into a country in violation of
regulations and / or IP. Slide 9 Counterfeit and Illegal Pesticides
& CPPs Fake products are often manufactured in rudimentary
Laboratories Slide 10 Counterfeit and Illegal Pesticides & CPPs
In Italy a genuine insecticide was relabelled as a herbicide for
profit without concern for safety issues Slide 11 Counterfeit and
Illegal Pesticides & CPPs Generic or other materials sold as
legitimate branded products in sophisticated counterfeit containers
and packaging. Titus 100 g Italy Seal and Cap Slide 12 Counterfeit
and Illegal Pesticides & CPPs Legal with safety
symbolsCounterfeit without symbols Slide 13 Counterfeit and Illegal
Pesticides & CPPs Found in Italy in 2006, a harmful herbicide
re- packaged into food oil containers. No indication to
unsuspecting users of the potential harm. Slide 14 Counterfeit and
Illegal Pesticides & CPPs Challenges across Europe The impact
of using counterfeit and illegal CPPs is significant and wide
ranging:- Farmer safety and livelihoods acute exposure, crop
damage, disposal of contaminated crops. Food chain security
consumer health from unknown, untested residues Environmental
protection water contamination, endangered species, biodiversity.
Government integrity and loss of tax revenue Industry reputation
and farmer confidence. Intellectual property, patents, trademarks,
safety & regulatory data. Slide 15 Counterfeit and Illegal
Pesticides & CPPs Slide 16 Farmers crops can be completely
destroyed when counterfeits are used and leave potentially toxic
residues in the soil effecting the subsequent crop. Slide 17
Counterfeit and Illegal Pesticides & CPPs Industry Initiatives
Recognised that the issue is detrimental to high quality CPPs in
the market place. Collective joint action under ECPA and now
CropLife International is the way forward. Awareness building
across a wide range of stakeholders Developing communication tools.
Advocating for positive enforcement action, stricter legislation
and penalties Establishing national projects Investigating new
technologies to identify, track and trace illegal products. Slide
18 Counterfeit and Illegal Pesticides & CPPs Slide 19 Industry
Initiatives National Projects Special anti-counterfeit projects
have been established in several countries including:- Spain Poland
Greece Ukraine Russia Germany Projects are designed to raise
awareness but also to work closely with the respective national and
regional enforcement agencies to establish workable programmes on
identification, seizure, prosecution and destruction of illegal
CPPs Slide 20 Counterfeit and Illegal Pesticides & CPPs
Industry Initiatives Spain, a typical case study Spanish growers
have long been known as users of illegal CPPs Late 2006 residues of
isofenphos were detected in a consignment of peppers imported in
Germany. Over the next three months a further 14 rapid food alerts
were issued by Member States and Russia. Food buyers rapidly
switched to other countries for peppers Spanish government reacted
rapidly to prosecute the importers and users and several companies
were fined. Pepper industry is slowly recovering but the issue
highlighted the global consequences of the illegal use of CPPs.
Slide 21 Counterfeit and Illegal Pesticides & CPPs
Isofenphos-methyl on peppers cause severe disruption to the food
chain embarrassed regulators in Spain Slide 22 Counterfeit and
Illegal Pesticides & CPPs DG Customs and Taxes Report 2006 Main
conclusions: 330 % increase of the number of counterfeit and
pirated goods seized by customs at the External borders of the EU
In 2006, 250 million goods were seized compared to 75 million in
2005 Customs seizure activity has increased by 40 % (37.000 cases
in 2006 compared with 26.000 in 2005) 80% of goods seized are from
China! Commissioner Kovcs: Counterfeiting continues to constitute a
dangerous threat for our health, safety and the economy. I
encourage all stakeholders to continue to cooperate and take
actions at all appropriate levels: business, national customs
administrations, police and other enforcement authorities. Slide 23
Counterfeit and Illegal Pesticides & CPPs The China Effect
Origin of counterfeit good seized across the EU through 2006 Slide
24 Counterfeit and Illegal Pesticides & CPPs Trends of
pesticide imports into EU25 between 2000 - 2005) Note: figures
include only Insecticides + Fungicides + Herbicides, Source:
European Commission, DG Trade Slide 25 Counterfeit and Illegal
Pesticides & CPPs Parallel Trade Continuous speculation over
the rules affecting parallel trade across the EU. Council under the
EU Presidency have formulated new text on the requirements and
application of parallel trade of CPPs Article 49a Whilst improved,
the new text remains ambiguous over identicality. It will also
provide potential opportunities to abuse the process by
unscrupulous trades, substituting legitimate authorisations with
counterfeit and illegal CPPs. However the most recent ruling from
France last week, indicated a positive position that pharma and
PPPs needed to be differentiated, implying Kohlpharma need not
apply. Slide 26 Counterfeit and Illegal Pesticides & CPPs
Parallel Trade ECPA supports the legitimate parallel trade of
products with common origin within the EU. Using common origin as
the corner stone of parallel trade removes ambiguity, allows
uniform implementation and a harmonised, regulated and respected
market place. ECPA continues to advocate to No Repackaging of
parallel traded products. Repackaging undermines, product
integrity, product stability, shelf life and opens significant
contamination issues plus compromises overt and covert
anti-counterfeit measures. Re-labelling is supported in order to
provide the necessary language for users on use, health and safety
requirements. Trade marks and other IP must be respected. Slide 27
Counterfeit and Illegal Pesticides & CPPs The Future ECPA will
continue to work on raising the awareness of the growth in
counterfeit and illegal products. Focus will be on the impact of
health and environmental issues that counterfeit and illegal
products bring to all stakeholders. Working with national and
regional enforcement agencies to provide the necessary tools and
information to identify rapidly, illegal imports of counterfeit
materials. Establishing best practices across the distribution and
supply chain so farmers can have confidence in the purchase of
products from reputable distributors. Developing and introducing
new technologies in manufacturing, packaging and delivery to
rapidly identify legitimate CPPs from those that are illegal. Slide
28 Counterfeit and Illegal Pesticides & CPPs The Future ECPA
encourages all stakeholders to be vigilant. If a product looks
suspicious, is being offered at an unrealistic price, has suspect
packaging, is a once in a life time offer; it is most likely a
Fake! The impact on farmers, the food supply chain and consumers
could be devastating. Use of counterfeit and illegal products can
ultimately undermine the whole agricultural and food supply chains
and that will be bad for business for all of us. Most counterfeit
and illegal business with CPPs is underpinned by organised crime
using subversive, manipulative and violent practises. Slide 29
Counterfeit and Illegal Pesticides & CPPs Thank You
