Gijs de Best urges shared enforcement to curb illicit trade

One route, many borders: the case for a joined-up fight against illicit trade

Gijs de Best, President of South Asia, Indochina, CIS and Middle East and Africa at Philip Morris International (PMI), on why tackling illicit trade requires countries to share intelligence, align policy and make sure the rules can be enforced.

A smuggler does not stop at a border because the rules have changed. Criminal networks move products and money across jurisdictions. The authorities trying to disrupt them are often still operating within national boundaries.

For Gijs de Best, that mismatch is at the heart of the challenge. He oversees a region of fast-growing markets. Before taking on the role in January 2026, he led PMI's business in the Philippines.

His argument is straightforward: if criminal networks operate across borders, governments need to do the same. That means sharing intelligence, coordinating enforcement and thinking about the risk of illicit trade when policies are designed.

The cost of illicit trade

Lost government revenue is one of the most immediate consequences.

"Illicit trade significantly deteriorates governmental revenues," de Best says. "If you take governmental revenue, every additional dollar earned can be reinvested in health care, in education and infrastructure."

Recent figures illustrate the scale of the issue in Europe. A KPMG study commissioned by PMI and published in June 2026 estimated that 55.3 billion illicit cigarettes were consumed across 38 European countries in 2025. It put the resulting loss in government revenue at around €22.4 billion. Illicit cigarettes accounted for more than one in ten cigarettes consumed in the EU, the first time that has happened since 2014.

The impact goes beyond tax receipts. Illicit markets also put pressure on legitimate businesses and, de Best argues, create risks for consumers.

"Illicit trade undermines legitimate businesses and weakens political institutions," he says. There is a product safety issue too. Illicit products "don't have quality standards. They don't follow safety protocols, they don't follow product standards," he says. "So they impose a risk on consumers using these products."

A problem well beyond Europe

Illicit trade can sometimes be framed as a problem concentrated in wealthier Western economies. De Best sees a different picture.

"That illicit trade is purely an issue in the Western world is often a misconception," he says. "Emerging markets are facing the exact same, if not worse, and they need the funding."

Southeast Asia offers a clear example. PMI estimates that governments across ASEAN lose around $4 billion a year in cigarette excise revenue, with another $2 billion lost to illegal vaping products.

The company has called for greater sharing of customs data between ASEAN member states, including in real time, and has warned that disruption to legitimate supply chains can create opportunities for illegal operators. The issue has particular relevance this year, with the Philippines holding the ASEAN chair.

For de Best, that makes the involvement of emerging markets in international discussions particularly important.

"It's so important they make their voices heard," he says.

Regulation is only as strong as its enforcement

Better regulation can help, but rules on paper are only part of the answer.

"Good regulation without enforcement only impacts the legitimate businesses because they follow the regulation," de Best says. Criminal operators, by definition, do not.

That means policymakers need to think about enforcement from the moment they design regulation. Who will enforce the rules? What resources will they need? Can the measures be implemented in practice? And will they ultimately make consumers safer?

These questions matter because poorly designed measures can increase the compliance burden on legitimate businesses without changing the behaviour of criminal operators.

Building illicit trade into policymaking

For de Best, the answer is to consider illicit trade much earlier in the policy process.

"Combating illicit trade should be an integral part of policymaking," he says.

That approach could bring benefits beyond recovering lost revenue. If governments can reduce the space in which criminal networks operate, they can also help protect legitimate businesses and consumers.

"If done successfully, it will reduce the crime rate and will significantly increase governmental revenues," de Best says.

The challenge is making that cooperation work in practice. Countries need to share intelligence and develop regulation that takes account of consumer protection, enforceability and product standards.

"Only then it will work."

A smuggler's route already crosses borders without asking permission. The response can cross them too, if governments share what they know and write rules they can enforce.

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