Illicit trade is a huge problem, costing the world about 3% of its total GDP every year…much of it in tobacco products. Think about it: the World Bank says that illegal cigarettes alone cause a loss of revenues of $40 to $50 billion annually. In France, it’s staggering — more than 30% of all cigarettes sold are illegal.
But it’s not just about money. When people buy these illegal products, they’re unknowingly fueling a cycle of crime. It’s not just avoiding taxes; it’s supporting criminal gangs and networks.
The Transnational Alliance to Combat Illicit Trade (TRACIT) points out that these groups use forced labor to make these illegal cigarettes. And, according to the Center for the Analysis of Terrorism, tobacco smuggling and counterfeiting have become a major money-maker for terrorist groups in the last decade.
Just this November 2023, law enforcement cracked down on cigarette mafia operations in Germany → and Slovakia →. Belgium saw six illegal factories shut down in 2023, with over 300 million illegal cigarettes confiscated →
At JTI, we’re actively working with political and law enforcement bodies at all levels to put an end to this illegal empire and curb the spread of organized crime.
Discover the JTI supported podcast series ‘Exposing the illegal empire →’ by Crime Stoppers International and how a fake goods illegal empire funds global crime – from gun running to drug smuggling, child trafficking to terrorism.
In Brussels, we teamed up with Euractiv to hold a discussion → about the impact of this issue and potential solutions, involving policymakers, academics and experts. You can check out an op-ed by our VP of Fiscal Affairs and Anti-Illicit Trade →.
For a deeper understanding, there’s an interactive website by Economist Impact → with detailed research on the scale, scope, and flows of illicit trade. It’s a wealth of information that really puts the issue into perspective.
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