3.3 Points to ponder

What are the economic drivers for food smuggling?

The economic incentive for smuggling is the magnitude of differential between the price of a food in its original country and the price in the destination country. Factors that can lead to illegal economic activity include high taxes or complex tax systems, low tax morale, low Gross Domestic Product, weak institutions, corruption and increased regulatory control measures (See Snowdon, 2012; Soon and Manning, 2018).

Table 2. Reported illegal import and food trade from 1987 – July 2016

Types of illegal trade Number of notifications
Attempt to illegally import124
Illegal import82
Unauthorised import / transit42
Missing import declaration31
Suspicion of illegal import10
Suspicion of attempt to illegally import7
Improper import declaration5