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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.
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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, 27th September 2007
Counterfeiting and Illegal Trade in Pesticides and CPPs • Background • Challenges across Europe • Industry Initiatives • Parallel Trade • The Future
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.
Counterfeit and Illegal Pesticides & CPPs 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 don’t work or have adverse side effects • Toothpaste that contains unknown harmful ingredients We adopt a much different attitude
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%
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.
Counterfeit and Illegal Pesticides & CPPs Fake products are often manufactured in rudimentary Laboratories
Counterfeit and Illegal Pesticides & CPPs In Italy a genuine insecticide was relabelled as a herbicide for profit without concern for safety issues
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
Counterfeit and Illegal Pesticides & CPPs Legal with safety symbols Counterfeit without symbols
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.
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.
Counterfeit and Illegal Pesticides & CPPs Farmers crops can be completely destroyed when counterfeits are used and leave potentially toxic residues in the soil effecting the subsequent crop.
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.
Counterfeit and Illegal Pesticides & CPPs 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
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.
Counterfeit and Illegal Pesticides & CPPs Isofenphos-methyl on peppers cause severe disruption to the food chain embarrassed regulators in Spain
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 Kovács: “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.”
Counterfeit and Illegal Pesticides & CPPs The China Effect Origin of counterfeit good seized across the EU through 2006
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
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.
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.
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.
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.
