JEDDAH, 1 July 2007 — The Arab League has liaised with the private sector in efforts to crack down on widespread counterfeiting and piracy that cost the region around $50 billion annually.
A landmark agreement to that effect was signed between Arab League and Hemaya Universal at the Jeddah Chamber of Commerce and Industry (JCCI) yesterday which led to the holding of the first Arab Consumer and Brand Protection Forum in the Kingdom sometime in May next year.
The agreement was signed on behalf of the Arab League by Dr. Mohammed Al-Towaijri, assistant secretary general for economic affairs, and by Ahmed S. Al-Zubeidi, president & CEO of Hemaya Universal, for the director general of the Arab Administrative Development Organization. Those present included Ahmed ibn Abdul Aziz Al-Hamdan, honorary chairman of Hemaya Universal, Ibrahim Abdullah Al-Subeaei, board member of the JCCI and president of its financial committee, Mohammed ibn Ateeq Harbi, director-general of the Ministry of Commerce, Makkah region, and members of the JCCI’s commercial fraud committee, in addition to several trademark owners and officials involved in the protection of intellectual property rights.
High-ranking trade and finance officials from relevant government agencies such as the customs, specifications and standards bodies, chambers of commerce, consumer protection societies, owners of trademarks or brand owners and non-governmental organizations as well as bodies specialized in combating commercial fraud, will participate in the three-day forum aimed at reviewing and studying proposed mechanisms on consumer protection. The suggested courses of action will be referred to the Arab League for purposes of developing future plans and execution of relevant recommendations.
Al-Towaijri said “commercial fraud of all forms has become a global phenomenon that deserves attention, and the combined efforts of all concerned. A more synergistic approach is necessary to effectively deal with this problem and minimize its impact on our economies. Ultimately, what we hope to achieve is ensure the protection of consumers in the region and enable commerce and trade to flourish and benefit us all.” Emphasizing the role of the private sector in the battle against commercial fraud, he said: “We at Arab League are of the belief that the private sector has a pivotal role in combating commercial fraud and ensuring that consumer and intellectual property rights are protected. We fully support this initiative, which is envisioned to facilitate a more effective coordination among relevant government offices across the region, the private sector as well as non-government entities to activate mechanisms and laws to limit the spread of this phenomenon.”
Al-Zubeidi said “the absence of ethical trade values and principles among manufacturers and importers of imitated products has contributed to the deepening crisis of commercial fraud in the region. The negligible penalties given to dealers of counterfeit have encouraged the growth of this phenomenon. With this forum, we have an opportunity to share ideas and formulate mechanisms to effectively stamp out commercial fraud.”
He said other contributing factors to the worrying increase of commercial fraud and violations include the limited number of cadres specialized in detection of adulterated and imitated goods in the market, the absence of a network linking all concerned parties involved in combating this phenomenon and the long procedures involved in investigating cases of commercial fraud.
“We also have inadequate laboratory equipment and personnel who simply rely on the certificate of conformity issued by the country of origin which may be incomplete and irregular. There seems to be an apparent lack of commitment among Arab countries to prevent import and export of such adulterated and imitated goods and also a low consumer awareness about the adverse economic impacts of purchasing counterfeit items,” he added.
Al-Hamdan said “battling this phenomenon by the private sector alone is not enough. They need a strategic partner such as the Arab League to activate and intensify efforts with related government sectors to boost the effectiveness of this initiative. With the combined efforts of everyone involved, we will not only succeed in eradicating commercial fraud, but also attract and encourage foreign investments.”
Hemaya Universal, in collaboration with the Kingdom’s Department of Customs, has been training customs inspectors on enhancing their capabilities to differentiate between original and imitated products.
The Arab Forum for Consumer Protection is set to embark on roadshows to raise consumer awareness about the ill-effects of buying counterfeit goods. It will also be coordinating intensively with the trade and industry departments from different Arab countries in identifying and penalizing shops that trade fraudulent and imitated goods.
Commercial fraud worldwide accounted for five to 10 percent of global trading valued at $780 billion annually.
