What is Fair Trade?

Hands up who thinks that people in Third World countries deserve to suffer? Keep your hands up if you think that they don’t deserve fair treatment in international trading schemes?

Didn’t put your hand up? That’s probably because you know that these conditions are fundamentally wrong.

One more quick test – check the tags on your clothing, the labels on your food and the origins of your morning coffee and ask yourself this: Were basic human rights abused in the making of this product?

Many of us never stop to think. It’s very easy to go about our daily lives without ever wondering whether the tea we’re drinking was harvested using ethical means or whether the farmers were paid fairly but that’s precisely what Fair trade is all about.

What is Fair Trade?
According to the International Fair Trade Association, Fair Trade Labelling Organisations International, European Fair Trade Association and Network of European Worldshops, fair trade can be defined in the following way: ‘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, marginalised producers and workers. Fair trade organisations (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."

How does it work?
For an organisation to be officially considered ‘Fair trade’, it must be certified by FLO (Fair trade Labelling Organisations International). The process to gain certification is as follows:

1. The producer organisations apply for certification to the FLO, usually with the support of a trading partner.

2. If the application is accepted, the organisation will be physically inspected by a local FLO inspector.

3. The inspector’s report is then considered by the FLO Certification Committee which then makes the final decision on whether to certify.

4. Certified producers are then re-inspected regularly – the frequency depends on risk analysis (how likely they are to default on the certification standards).

5. Groups that fail to meet minimum standards during a subsequent inspection are given a corrective action plan that must be executed over an agreed period. If the necessary action isn’t taken within the advised time frame, the organisation’s certification will then be suspended for a fixed period of time until the corrections have been made. If the corrections are not made within the final probationary period, the group will be decertified and barred from trading under Fair trade terms.

For a producer to be certified ‘Fair trade’, they must adhere to the seven key principles of fair trading. They are as follows:

• Creating opportunities for economically disadvantaged producers – the overriding aim of the system is to alleviate poverty and empower local communities.

• Transparency and accountability – dealing fairly and respectfully with trading partners.

• Capacity building – developing producers’ independence wherein Fair trade relationships provide continuity and access to new markets and management education

• Payment of a fair price – a trading price that not only covers the costs of production but enables future production that is environmentally sound and socially just.

• Gender equity – men and women are treated equally and are properly valued and rewarded.

• Safe and healthy working conditions for producers – where children are concerned (if any) the work they undertake must not adversely affect their well-being, security, educational requirements and need for play, and must conform to the UN Convention on Rights of the Child, as well as the law and norms in the local community.

• Environmental protection – Fair trade encourages better environmental practices and the application of responsible methods of production.

The best way to ensure you are receiving a genuine Fair trade item is to ensure that your purchases bear the Fair trade logo.

Background
There are differing reports on when and where the movement officially started but the Fair trade consumer guarantee (labelling and certification) movement started in 1989 in the Netherlands and has gained momentum ever since.

Prior to this during the 1940’s and 1950’s, religious groups and various non-government organizations (NGOs) in the Northern Hemisphere markets began to establish fair trade supply chains in developing countries. During this time, the products were almost exclusively handicrafts that were sold at markets and fairs.

In the 1960’s, the United Nations Conference on Trade and Development came up with the slogan, ‘Trade not Aid’ and from this point onwards, fair trade became a genuine priority of the UN.

Today, more than 5 million farmers, workers and families across 49 developing countries benefit from the international Fairtrade system. Locally, FTAANZ (Fair Trade Association of Australia and New Zealand) was established four years ago to support the fair trade movement in the region. Fairtrade standards include a guaranteed minimum price that covers the cost of production and a living wage, as well as a premium that is invested in the local community.

Social Impacts
The social impacts of Fair trade are enormous. In countries where child labour and slavery are standard practices, Fair trade creates an economic incentive in which to stop these activities. In many cases, the arguments of human rights and justice are defunct because the societies in which these practices take place do not legally or socially recognise them as being relevant. Hence, money is the only thing that will make any significant difference to the way things are done. If property owners can make more money by introducing Fair trade practices for their workers, they may be inclined do it without a moral imperative. For producers who have struggled on their own at the mercy of buyers – whether they are local or international – the Fair trade system provides a critical support network in which to trade.

Environmental Impacts
The reality is that in many poverty stricken communities, rainforest areas are indiscriminately cleared to make way for crops. Once the crops are in, they are often heavily sprayed and fertilised with little regard for sustainable agricultural practices. This leads to soil degradation and erosion, water pollution and a toxic environment for local wildlife species. When poverty is the key driver in any economic arrangement, there is rarely much thought given to the future as the immediate needs of today – food, shelter, medical care – will most certainly override any plans for conservation.

Key Fair trade Crops
Key Fair trade items to look out for are as follows: bananas, cocoa (and subsequently chocolate), coffee, cotton, dried fruit, honey, juices, nuts, oils, seeds, purees, quinoa, rice, spices, sugar, tea, wine, cut flowers, ornamental plants and sports balls.

Playing Fair
Like many ethical considerations, the first thing to think about is what would you do if the situation were reversed? What would it be like to work excessive hours in unsafe conditions? What if you were paid so badly that you couldn’t afford to take care of your family and therefore had to send your children out to work in the same dangerous working conditions? Or if you had to destroy your tribal lands in order to grow crops so that your community could survive?

Many of us will never be faced with these questions except in an abstract sense and yet, as part of a global community, these are truly our problem because precious ecosystems like the Amazon are being decimated and corrupt governments are being financed through these activities – if all it takes is a few extra minutes in the aisles looking for the logo or seeking out a barista who uses Fair trade coffee, why not take a moment to improve the lives of some of your fellow human beings?

References avaliable

About Macro Wholefoods Market
Macro Wholefoods Market is Australia’s largest organics retailer. With nine outlets in NSW and Victoria, and three more stores set to open in the coming months, Macro is committed to bringing organics and Fair trade products to a wider audience and helping its customers live healthy & environmentally sustainable lives through its products and services.