Fair trade

The Flipside Experience by Silvia Schechter

Fair trade, beyond its importance as a worldwide social movement, is a flip side
concept to ordinary trade based on a partnership between manufacturers and
merchants, ventures and consumers. Adhering to its principles and endorsing the
very notion of it, Fair trade promotes the ideals of progressivism, of sustainability,
of thoughtful consumerism and of fair prices. By implementing a democratic
approach in the Fair trade system, its stated goal is to aid local producers in
developing countries achieve finer trading conditions. Every member of Fair trade
campaigns for the payment of higher prices to producers, as well as better socialenviromental standards.
Despite its fundamentalist grandeur, Fair trade focuses more on domestic goods
and trivial commodities such as: coffee, cocoa, sugar, cotton (textiles), tea,
bananas, handcrafts and so on. The movement seeks greater equity amongst all
exporters and importers in the international trade web , and strives for securing
the rights of producers in low economically developed countries.
Through dialogue, human decency, respect, and fairness, the movement
developed certain sets of standards for the smallholders who are working
together in cooperative organizations. Fair trade Standards acknowledge two
different types of producers, thus the sets are primarily distinct. Another set is
relevant to workers, who are paid decent wages, are guaranteed the right to join
trade unions, are provided health and safety standards, and are ensured
adequate housing by their employers.
Additionally to the price paid for the product there is a supplementary sum of
cash, entitled Fairtrade Premium and given to farmers for products sold on
Fairtrade terms. This money goes into a communal fund for blue-collar workers
to be used in order to improve their lifestyle. The Premium may also be invested
in education and healthcare, farm renovations for quality expertise or respectively
for operating facilities to increase income.
Fairtade is investing in its Monitoring, Evaluation and Learning (MEL)
Programme, and as part of its commitment to educating and business
transparency, the results of annual monitoring, commodity briefings, evaluation

data, and commissioned research are published on an annual basis. The data
accumulated gives insights into the scale and scope of Fairtrade, and depicts the
benefits distributed and generated by the Fairtrade system to small, independent
producers.
Various evaluations of Fair trade impacts on workers and smallholders had been
documented from merchant practices in Barzil (orange juice), Northern Colombia
(banana sector), Ecuador (flower plantations) and Malawi, inherently reducing
poverty in the areas and defining forms of empowerment through initiative
assessment. In the vision of Fair trade members, people can gradually overcome
trade disadvantage and commerce marginalization if they are encouraged and
supported. In an equal world, better livelihoods, better futures and fulfillment of
potential are essential. Trust is a crucial factor as well as stakeholder
participation.
A brief chronology is yet to be provided, therefore the launch of the first Fairtrade
label, Max Havelaar, was made possible under the initiative of the Dutch
development agency Solidaridad as a stand for the rise of labeling recognition. In
1988, the first Fairtrade coffee from Mexico was sold into Dutch supermarkets,
and it was branded Max Havelaar, after a fictional Dutch character who opposed
the exploitation of coffee cultivators in Dutch colonies.
In the late 80s yet early 90s, the Max Havelaar initiative is replicated in
numerous other markets across Europe and North America.
In the year 1997, Fairtrade Labelling Organizations International (FLO) was
established in Germany to unite the national Fairtrade organizations under one
roof and harmonize worldwide standards and legalize certification.
In 2002, Fairtrade International launches the international FAIRTRADE
Certification Mark. The goals of the launch were to facilitate cross border trade
and simplify export procedures for both producers and exporters.
And in 2007, Fairtrade International is officially seen as one of the seven
organizations that have reached the highest standards for complementing ethical
trade.
Of course, various other key factors have to be included in the Fair trade talks
such as further product certification, misleading volunteers, ethical criticism,
political objections in the EU councils, unethical selling techniques, imposing
politics coming from importers and whether there is failure to motor health
standards or crop growing conditions. Not to mention that there is a high belief in

the theories concerning Fair trade as an inefficient marketing system (which may
lead to bankruptcy, no chances of making a considerable profit, and fiscal
recession in some grave cases). Also, the Fair trade Foundation does not
constantly monitor how much extra money paid to the cooperatives gets into the
farmers pockets at the end of the day, raising suspicions on whether Fair trade
farmers get higher prices indeed on an average level as there are no clear
evidences. The same goes for the developing countries that do not benefit from
large sums of money as the extra retailers charge is also not monitored and little
money may reach the low income countries.
All in all, Fair trade, as any other social movement that strives for a better world,
is still in its process of sharpening and let us hope that such altruistic takes of
stand can be improved for the better good of humanity.
Sources:
http://en.wikipedia.org/wiki/Fair_trade#Rise_of_labeling_initiatives
http://www.fairtrade.net/what-is-fairtrade.html
http://www.fairtrade.net/standards.html
http://www.fairtrade.net/history-of-fairtrade.html
http://www.fairtrade.net/