Hernan Albamonte, head of illicit trade prevention for Philip Morris International (PMI) discusses how Free Trade Zones are enabling illegal trade:

“Free trade zones (FTZs) have a long and established role in world trade, dating back to at least early 1700s. They provide numerous benefits to both businesses and countries. However, lightly regulated FTZs – of which there are many – are also attractive to parties engaged in illegal and criminal activities. They offer a relatively safe environment with both good infrastructure and limited oversight, enabling trade in counterfeit and pirated products, smuggling and money laundering.”

“Today, FTZs too often are catalysts for unlawful activities, rather than achieving their intended purpose of increasing global trade. There is a balance that must be struck between facilitating trade, growth and profitability, and maintaining jurisdictional, border and customs controls that prevent dishonest and harmful practices. Implementing measures such as those recommend by the OECD is a good place to start.”

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