US puts Kenya on the spot over trade in counterfeit goods
Report claims that the influx of counterfeit products denies business opportunities to American firms in the region, in addition to denying governments revenue
The United States has spotlighted Kenya as a leading market for counterfeit products, exposing consumers and posing health dangers.
A report by the Office of US Trade Representative (USTR) says inadequate intellectual property enforcement systems in the East African region, including Kenya, facilitate the entry of fake goods from China, Turkey, India, and Vietnam.
The Donald Trump administration claims that the influx of counterfeit products denies business opportunities to American firms in the region, in addition to denying governments revenue.
“The counterfeits are shipped either directly to purchase or indirectly through transit hubs, including Chile, Kyrgyz Republic, Singapore, Hong Kong, Turkey, and United Arab Emirates to third-world country markets such as Kenya, Brazil, Mexico, Paraguay, and Russia,” the report stated in part.
Medicine, personal care products, apparel, and footwear, electronics, sportswear, toys, chemicals, automotive and aircraft parts, food and beverages, among other household items, top the fake goods sold in Kenya.
“The problem of trademark counterfeiting continues on a global scale and involves the production, transshipment, and sale of a vast array of fake goods,” the report stated.
It goes on to state that trade in counterfeits has become more sophisticated with dealers using legitimate express mail, international courier, and postal services to ship counterfeit goods in small consignments instead of ocean freight to evade law enforcement.
At the same time, the report suggests that dealers are shipping goods separately from counterfeited labels and packaging to evade enforcement.
“Counterfeiters also increasingly sell counterfeit goods on online marketplaces, particularly through platforms that permit consumer-to-consumer sales,” the report stated.
The USTR stated that it is urging e-commerce platforms to take proactive and effective steps to reduce piracy and counterfeiting of goods.
“This can be done by establishing and adhering to strong quality control procedures in both direct-to-consumer and consumer-to-consumer sales, vetting third-party sellers, engaging with right holders to quickly address complaints, and working with law enforcement to identify IP violators,” it added.
