How fair is fair trade?
With Fair Trade Fortnight fast approaching we thought we would try to answer some of the questions that often come up about fair trade. There are plenty of fair trade facts on the internet but what is a fair trade?
There is a lot of confusion about what fair trade is about and we often get asked “What does fair trade do?” Many people confuse it with the organic and environmental movements and while they may recognise the fair trade logo on a banana and realise that it’s a good thing, many people still do not understand who benefits from fair trade.
Fair trade in a nutshell
Fair trade is about people. It’s as simple as that. Fair trade arose from the unfair international trading practices that meant that small producers in the developing world were being paid far too little for their products. Producers such as coffee farmers were being paid less than the cost of production as the international prices were so low. This meant that they were working hard but losing money, unable to send their children to school or get medical care or even feed them adequately.
Fair trade guarantees sustainable prices and better working conditions. In return for receiving a minimum price for their goods, producers must meet certain social, economic and environmental requirements that ensure the sustainable and fair development of their organisations and workers. The minimum price is set in consultation with producers and can never be less than the market price.
A premium is often paid over and above the minimum price and this extra money is used to invest in social, environmental and economic developmental projects that the producers wish to pursue.
So while consideration is given to environmental issues, the over-riding purpose of fair trade is to improve lives.
Fair trade certification
There are 2 main certification organisations recognized in the world:
1 Fairtrade Labelling Organization (FLO). The Fairtrade Foundation is the UK member of the FLO and it works with businesses, civil society organisations and individuals to improve the position of producer organisations in the developing world and to help them achieve sustainable improvements for their members and their communities. Certification and product labelling (through the FAIRTRADE Mark) are their primary tools. The backing of organisations of producers and consumers as a citizen’s movement for change is fundamental and integral to their work. They mainly deal with commodity products such as coffee, sugar, bananas and cotton.
2 World Fair Trade Organisation (WFTO). This fair trade certification system takes a slightly different approach to the FLO and so covers a wider variety of products, such as gifts and handicrafts. Provided a producer or manufacturer can meet the 10 fair trade principles (go to http://www.wfto.com/index.php?option=com_content&task=view&id=2&Itemid=14 to view them), a producer is certified as fair trade no matter what he makes. By committing to poverty reduction, fair trading and prices, no child labour and more, the producers get access to western markets which they would normally be unable to reach. The accredited member could be a UK importer, Indian manufacturer or social enterprise in any developing country. The UK representative of WFTO is the British Association for Fair Trade Shops (BAFTS).
Fair trade and the UK consumer
Fair trade is doing well in the UK and fair trade sales continue to grow in spite of the recession. Fair trade for the consumer is not about consuming more, but about taking the fair trade option. If you are going to buy some coffee, a gift or a cotton t-shirt choose the fair trade option where it is available.
Fairtrade Fortnight 2012 (27th February to 11th March) is about taking a step for fair trade. This means swapping your brands for Fairtrade brands at home, school or at work. Whether it’s tea, coffee, gifts, clothing or sweets, there are fair trade brands available. And by buying them you really can make a difference to someone’s life.
For more information go to www.wfto.com and www.fairtrade.org.uk.
Fairwind is an active member of Ethical Junction, learn more