ethoughts weekly- Issue 152

March 9, 2007

Fair Trade

My brother-in-law, Jeff, gave me a birthday gift of Paul Newman Organic Fair Trade Coffee. I’m fairly hip to social justice causes, but I decided to do some research and really explore what Fair Trade truly means, its history, its criticism, its impact, and its future, and report to you on it, in a brief way. Maybe you aren’t all the Fair Trade aficionados you might want Bono to think you are. I’m here for you.

I got the bulk of my information from Wikipedia, and if you’d like to explore this issue further, or I leave some gaps in this summary, I suggest you visit them. They present information and resources for the various angles on this issue.

Although Fair Trade certified sales make up just a tiny fraction of global purchases, they have risen sharply, and two years ago rose to 1.1 billion Euros. The effort to help developing countries economically in this way, is something Europeans, in particular, have championed, especially in the last ten years. In the United States as well, far more items are available that sport Fair Trade labeling, and offer consumers the opportunity to participate in “spreading the wealth”.

The most widely used definition for Fair Trade is the following:

Fair trade is a trading partnership, based on dialogue, transparency and respect, which seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers - especially in the South. Fair trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.

The idea is simple fairness. How we achieve this, of course, is always going to be debated. Poorer countries typically rely on agriculture for their main sources of income, but entrenched systems, inequitable subsidies, and various sweetheart deals have closed the doors on many poor countries that have commodities to sell.

The draw back to opening up more agricultural markets all over the world is of course the down side of the age-old supply and demand principle. With more venues open on the world market, production goes up, and the demand, by natural effect, goes down. Eventually, farmers are hurt by these forces because their crops are worth far less than before. Circumventing one unfair system may just one day enforce another unfair one.

Nevertheless, worldwide poverty is widespread and undeniable, and poor countries cannot hope to compete with much success in world agricultural markets. Our cushy lives don’t bear witness to this, but trust me, far beyond the shores and Superstores of our land, people live, or rather die, on basically nothing at all. We don’t see the suffering families farming and trying to make it, but they exist in the hundreds of millions.

The principles of Fair Trade are virtuous ideals. And they are the following:

Fair trade advocates generally support the following principles and practices in trading relationships:

Creating opportunities for economically disadvantaged producers

Fair trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.

Transparency and accountability

Fair trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.

Capacity building

Fair trade is a means to develop producers’ independence. Fair trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.

Payment of a fair price

A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fairtraders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.

Gender equity

Fair trade means that women’s work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.

Working conditions

Fair trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.

Environment

Fair trade actively encourages better environmental practices and the application of responsible methods of production.

So, now you know a little more about Fair Trade. It’s not just something for “fruits and nuts”-- unless you’d literally like to buy some fruits and nuts. The increase in Fair Trade goods creates many more opportunities for families in under-privileged countries. It may not be the ultimate solution to poverty, or path to economic utopia, but you can know when you buy a Fair Trade product, the grower, or harvester in an impoverished country was treated far better than in more common trade practices. It could be your small way of helping the less fortunate a world away.

Lisa DeLay

©2007