The Economist Intelligence Unit (EIU) has launched a new Illicit Trade Environment Index for countries in the Asia-Pacific region.
Australia is best equipped in the region to prevent illicit trade, but some Southeast Asian countries are ill equipped to combat trade-based financial crime according to the index.
The index looks at 17 economies and found that Australia scores in the top five in each of four categories: intellectual property, transparency and trade, customs environment and supply and demand.
Hong Kong, once a hub for trade in counterfeit goods, ranks third in the index, with experts in illicit trade and intellectual property pointing to great improvements in policies and institutions designed to combat illicit trade.
China, where companies are notorious for producing huge volumes of counterfeit goods, finishes ninth, based on progress in intellectual property protection and transparency.
But the low ranking of some Southeast Asian countries could portend a rise in illicit trade as manufacturing shifts from China according to the report that accompanies the index.
The authors of the report maintain that with increased integration in the region, illicit trade will grow in the lower ranking countries unless governments make greater efforts to combat it.
In order of ranking, the countries in the index are Australia, New Zealand, Hong Kong, Japan, South Korea, Malaysia, Taiwan, Singapore, China, India, Thailand, Philippines, Vietnam, Indonesia, Cambodia and Laos.
The Illicit Trade Environment Index and accompanying report are intended to stimulate and improve discussion of the issue according to an EIU statement.
The Illicit Trade Environment Index and accompanying report can be found here.
Categories: Trade Based Financial crimes News