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China in drive to halt counterfeit goods in EAC

Sunday March 20 2011
drugslandscape

Counterfeit drugs in Beijing. China is accused of flooding East Africa with counterfeit goods. Photo/FILE

The value of bilateral trade between China and East African countries rose to US$3 billion in 2010, new statistics show.

Data from the Chinese embassy in Uganda, shows that the total trade value shot by 40 per cent on the back of mechanical, textile and agricultural products, even as concerns over Chinese counterfeits flooding EAC markets heightened.

The Chinese government says it intends to increase this trade value, through cracking down on the production and trading of counterfeits.

Traders in the EAC region have claimed that unscrupulous entrepreneurs, were exploiting the relaxed trade regime to illegally replicate well-known brands on their packages and labels, flooding the market with substandard versions of locally available products.

China has imposed punitive measures on exporters of counterfeits into the African market and its now counting on the EAC governments to help crack down on the contraband.

“Through our joint efforts, I hope there would be no China made counterfeits in the EAC market. I also hope more highly cost effective Chinese products will be brought to the East African market for the well-being of the people here,” said Zou Xiaoming, the economic and commercial counsellor at the Chinese embassy in Uganda.

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As with the rest of Africa, trade relations with EAC nations is expected to strengthen this year as the Asian giant deepens economic and investment partnerships with the countries.

EAC mainly exports leather, tea, coffee, sisal fibre, scrap metal and horticultural produce to China and in turn take up machinery, electronic and electrical goods, textile and fertiliser among others.

To stop the counterfeits, for example, heavy fines and death penalties for the offenders have been imposed.

For instance, China says that; ‘a company found exporting counterfeits to Africa would have its illegal gains confiscated; a fine ranging from 50 per cent to twice the value of the counterfeit would be imposed and it would be banned from export business in the future.’

Also the direct manager of the counterfeits would be charged with a criminal offence and if found guilty, sentenced to several years, life imprisonment or even a death penalty according to the counterfeit value and effect caused by the counterfeits.

This move comes after increased complaints from east African states about counterfeits on the market made in China.

East African traders remain skeptical about China’s commitment to fight counterfeits in the region.

To most of them, although east African governments have redress mechanisms for Chinese exporters but there have been no reciprocal measures by China.

The resigned culture of the east African consumer, uncooperative manufacturers and the lack of government’ vigilance and enforcement still keeps counterfeits on the EAC market, traders in Uganda said.

“China manufactures specifically for the US and Africa market. When you go to China, they sell you goods for the ‘Ugandan market’, which are of very low quality. If they are committed to stopping counterfeits they should stop them at base,” said a trader in Kampala.

‘I doubt that China has the capacity to fight it. I think they want to hear what we say and capitalise on it but they cannot stop counterfeits.”

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