Counterfeits cost the EU 26 billion per year – Jornal de Negócios – Portugal

The smuggling and sale in the European Union clothes, shoes and accessories fake generates a loss of 26 billion euros every year. In Portugal, the damage amounts to almost one billion euros.

The sale of clothing, shoes and accessories forged in the European Union generates a loss of EUR 26 billion and the loss of about 363,000 jobs every year in EU countries. The conclusion is presented by the Office for Harmonization in the Internal Market (OHIM), presented this Tuesday, July 22.

The sale and distribution of clothing and footwear fake account for nearly 10% of total sales sector. The decline in revenues of manufacturers and sellers of original products has an impact not only on profit but also on the number of jobs that are lost or fail to be generated.

The same report also has side effects counterfeit products are also in production and suppliers. Only in these two sectors, the damage exceeds 43 billion euros and eliminates almost 520 000 jobs.

Since the producers and sellers of counterfeits do not pay taxes, VAT or social security contributions, it is estimated who lost eight thousand million in tax revenues in the coffers of the Member States of the European Union.

In Portugal, the direct effects on loss of sales revolve around 452 million euros, about 10.4 %. In what concerns the effects on employment, the number exceeds 18 000 job losses, a slice that is it also nearly 10% of the sector. Taking into account the indirect effects, the numbers of injury reach more than double the economic consequences, with a loss of 992 million euros. At the same time, also over 25,000 people face an unemployment situation, caused by counterfeiting.

António Campinos, President of the Office for Harmonization in the Internal Market, says of the report expected to be “a help to the rulers”, but also to consumers in order to encourage them to take “more choices informed, “cites the report available on the OHIM website.

The same agency also said that plans to cover the same study ten other sectors over the next 18 months. Watches and jewelery, bags and purses; sporting goods, games and toys; drugs; computers and car parts, as well as work and alcoholic beverages, will be the next sectors to be studied.