Fair trade
Producers in poorer countries are seeking 'trade justice' and are promoting the concept and practice of fair trade. They want a more balanced, rules-based system and an end to rich country tariffs and subsidies. They want trade regulations to be made in a fair and democratic way that gives poorer countries the flexibility to choose trade policies that enhance development. They are seeking their fair stake in global prosperity.
In the immediate absence of trade justice, partnerships are emerging between companies in the richer countries and small-scale cooperatives of producers in poorer countries based on fair trade. Prices of raw materials in global markets fluctuate wildly, and small-scale producers in poorer countries can rapidly lose their land, their homes and their livelihoods. Fair trade contracts, based on equal trading partnerships, guarantee producers a fair, stable price for their goods so they can make long-term plans. Their return includes a premium funding sustainable community development. This is used for health clinics, childcare and education.
Some goods, like tea or chocolate, are produced on large estates and plantations where traditionally child labour has been used. Fair trade tea and chocolate distributors insist on decent wages and working conditions. They guarantee the right to join a trade union, good health, safety and environmental standards, and a commitment by companies not to use child labour.
Fair trade products, such as Clipper teas, Cafédirect coffee, Divine chocolate and Namaste clothes, carry fair trade labels, so consumers in richer countries can make an informed choice to buy them. Although fair trade makes up a very small proportion of the market, the number and variety of fair trade products are steadily growing.
Trade justice and fair trade have other implications for consumers in richer countries beyond the moral case for equality in trading relationships. Given how many of the raw materials for goods consumed in richer countries are produced in poorer countries, prices would inevitably rise – although not drastically. But the long-term cost of a world resting on exploitation, environmental degradation and social conflict is surely a higher price for all.
In the immediate absence of trade justice, partnerships are emerging between companies in the richer countries and small-scale cooperatives of producers in poorer countries based on fair trade. Prices of raw materials in global markets fluctuate wildly, and small-scale producers in poorer countries can rapidly lose their land, their homes and their livelihoods. Fair trade contracts, based on equal trading partnerships, guarantee producers a fair, stable price for their goods so they can make long-term plans. Their return includes a premium funding sustainable community development. This is used for health clinics, childcare and education.
Some goods, like tea or chocolate, are produced on large estates and plantations where traditionally child labour has been used. Fair trade tea and chocolate distributors insist on decent wages and working conditions. They guarantee the right to join a trade union, good health, safety and environmental standards, and a commitment by companies not to use child labour.
Fair trade products, such as Clipper teas, Cafédirect coffee, Divine chocolate and Namaste clothes, carry fair trade labels, so consumers in richer countries can make an informed choice to buy them. Although fair trade makes up a very small proportion of the market, the number and variety of fair trade products are steadily growing.
Trade justice and fair trade have other implications for consumers in richer countries beyond the moral case for equality in trading relationships. Given how many of the raw materials for goods consumed in richer countries are produced in poorer countries, prices would inevitably rise – although not drastically. But the long-term cost of a world resting on exploitation, environmental degradation and social conflict is surely a higher price for all.