According to a survey conducted by the World Economic Forum, illegal trade accounts for 5-15 per cent of the global Gross Domestic Product (GDP), leading to severe consequences for the world economy. To date, no country has successfully eradicated illegal trade, so nations are seeking separate ways and means to combat the trafficking of narcotic drugs, arms, and ammunition, as well as to fight money laundering.
This is because if a single approach were applied, legal actions could impact those who follow proper regulations in legitimate trade. Moreover, such an approach could create difficulties for the relevant country in competing for market share. Currently, the government of Myanmar is focusing on eradicating illegal trade for the benefit of the people, aiming to stabilize commodity prices and promote legal trade and businesses to capture market share.
Illegal trade poses dangers to all sectors. Infectious diseases linked to illicit trade activities can devastate agriculture and livestock farms domestically. Furthermore, counterfeit medications and cosmetics may cause harmful side effects in the health sector. In addition, low-quality and fake household electronic equipment can expose users to fire hazards.
On the other hand, the import of low-quality illegal goods without paying taxes fuels the black market and contributes to the circulation of foreign exchange. In addition, engaging in unlawful trade allows trade partner countries to manipulate the prices of goods at will. Moreover, the rise of illegal trade can disrupt the stability of commodity prices in the domestic market.
In fact, illegal trade brings serious consequences. Legal businesses cannot compete with the lower prices of illegally imported and smuggled goods in the domestic market. As legal trade and businesses lose market share, it becomes difficult for business owners to maintain their standing in the long run. As a result, they face a downturn in business activity and lose the motivation to expand. Eventually, domestic manufacturing could come to a halt, which would harm the State’s economic objectives and affect its capabilities in agriculture, manufacturing, and trade sectors.
Among the many root causes of illegal trade, the country primarily faces the challenge of restrictions in monitoring certain borders due to security concerns. Moreover, legal measures to combat the illicit trade are weak, and insufficient staff is assigned to its eradication. Unfortunately, some public officials engage in malpractice and corruption driven by bribery. As such, local authorities and task forces must address these issues as effectively as possible.
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