French association says organised criminals are faking it

LARGE networks making and selling fake goods across China, Thailand and Europe are linked to arms and drug activities, a French luxury goods association believes.

Comite Colbert, whose members include Remy Martin, Hermes, Chanel and Louis Vuitton, says counterfeiting is becoming more wide-spread across the globe as dealers in arms and drugs use traffic in fake labels to launder money.

Comite Colbert president Christian Blanckaert said: ''One of the reasons why there is so much counterfeiting in the world is because of the drug problem in the world. It is easier to invest in counterfeiting than drugs nowadays.

''Very often when you talk to police of several countries they usually know exactly what other businesses are being used to recycle the money.'' Police sources had revealed extensive networks which could start off in Amsterdam but be part of huge operations fanning out to Asia and funded by dirty money.

Comite Colbert, which is actively lobbying to stamp out counterfeiting, is calling on the Chinese Government to slash taxes on luxury products - which can tip 350 per cent on perfumes - to make the real thing more affordable.

Industry estimates say France loses up to 30,000 jobs a year through counterfeiting. For the whole of Europe the loss 100,000.