The Organization for Economic Cooperation and Development (OECD) released on Monday that counterfeited and pirated goods accounted for up to 2.5 percent of world trade. This translates to as much as $461 billion and results in significant financial and personal damages to companies. This has doubled over the past 8 years, with a previous OECD study from 2008 reporting fake products like Louis Vuitton or Nike shoes, accounting up to $200 billion of world trade.
The impact of counterfeiting is heavy for first world countries like the United States, France, and Italy, where most of the companies making the highly desirable branded goods are based. The European Union imported up to 5 percent of fakes in 2013, or up to $116 billion.
The OECD stated China appears as the largest producer of counterfeited products, but also adds that the intellectual property rights of Chinese companies have been frequently breached. The Paris-based think tank cited the post-financial crisis revival in trade as well as the materialization of global value chains and exponentially booming e-commerce industry as the reason there is a rise in goods pirated and trafficked since 2008.