Fair Trade

Fair trade

fair trade (also called fair trade, equitable trade, or alternative trade) is a form of trade alternative promoted by several NGOs (non-governmental organizations), by the United Nations Organization and by social and political movements (such as pacifism and environmentalism) that promote a voluntary and fair trade relationship between producers and consumers.

Fair trade is an initiative to create innovative commercial channels, within which the relationship between the parties is oriented towards the achievement of sustainable and sustainable development of the offer. Fair trade is oriented towards comprehensive development, with economic, social and environmental sustainability, respecting the idiosyncrasies of peoples, their cultures, traditions and basic human rights. Fair trade can be considered a humanist version of free trade, which, like free trade, is voluntary between the two parties and would not take place if both parties did not believe that they would benefit.

Principles of fair trade

The principles defended by fair trade are:

The Fair Trade Principles published by Fair Trade Federation of the United States (founded in 1995)

Fair Trade Principle #1 “Members place the interests of producers and their communities as the primary concern of their company.”

• I work, in rejection of subsidies and assistance (then the phrase of fair trade: "Commerce, does not help").
• I reject child exploitation.
• Work with dignity respecting human rights.
• The price paid to producers allows decent living conditions.
• Buyers generally pay in advance to prevent producers from seeking other forms of financing.
• Quality and sustainable production are valued.
• Environmental care
• It seeks to avoid intermediaries between producers and consumers.
• Consumers are informed about the origin of the product.
• The process must be voluntary, both the relationship between producers, distributors and consumers.
• Price paid, beyond what the capitalist market offers

He is in favor of free trade under equal conditions, that is, abolishing discriminatory restrictions on products from developing countries, from raw materials to manufactures or technology. That way discrimination and protectionism are avoided. It also tries to avoid the great differences between the price that consumers in the first world pay for a product and the money that its producers are paid in the third world, in addition to avoiding the exploitation of workers. This helps to offset the effects of the consumer obsession with the cheapest price, without other consideration, and its consequences:

• Progressive deterioration of the quality and durability of the products.
• Exploitation of producers (see slave labour workshop).
• The fair price, that is, does not contain components influenced by government interventions or subsidies that distort the concept of fair trade. Distortions and consequent complaints on the market arising from subsidies are raised by stakeholders to the World Trade Organization.

The philosophy of fair trade is that the best help from central countries to developing countries is the establishment of ethical and respectful trade relations, with sustainable growth of nations and individuals. More than by official or state entities, fair trade is promoted and practiced by millions of supportive people in various parts of the world. Here the so-called Third World Stores play a decisive role, through volunteers who, in their spare time, help to sell products such as Colombian Coffee, Cuban Rum, Chiapas Honey, Bolivian and Peruvian Quinoa, etc.

• Guarantee for workers a fair wage.
• Improve workplace safety and hygiene conditions.
• Promote equal opportunities for women.
• Protect the rights of children.
• Safeguarding ethnic minorities.
• Preserve the environment.

History

In 1964, the Fair Trade system (FT) began with the UNCTAD conference: United Nations Conference on Trade and Development. There, some groups proposed supplanting economic aid to poor countries by a regime of commercial opening of markets with high purchasing power. Only a few groups of inhabitants of developed countries promoted the creation of "UNCTAD" stores, which would market products from the so-called Third World in Europe, avoiding entry tariff barriers. From that moment on, a chain of "Solidarity" stores was started, in the Netherlands and then Germany, Switzerland, Austria, France, Sweden, Great Britain and Belgium.

In 1967, in addition, the Catholic organization SOS Wereldhandel, from the Netherlands, began to import handicrafts from underdeveloped countries, with a catalog sales system. The formation of the Solidarity shop network gave the SOS Wereldhandel a stable marketing channel. Solidarity stores enjoyed sales success, where branches became autonomous organizations importing products directly.

In 1973, the first major food product entered this trading system: FT coffee, produced by Guatemalan cooperatives under the common brand Indio Solidarity Coffee. The FT Coffee is an important milestone, giving a great impetus to the growth of the system.

In the 1980s, transactions and their frequency allowed many producers to face quality improvement and product design, supported by a network that allowed them to enter the most important markets. The list of products involved grew with the addition of blends of coffee, tea, honey, sugar, cocoa, nuts. The crafts grew in quantity and quality, with marketing techniques.

In 2006, there are fair trade organizations in Europe, Canada, the United States, Japan; with sales for more than 3000 solidarity stores, by catalogs, by representatives, by groups. The participation in the network of the different religious organizations is also considerable. The appearance of the Identification Seals has given a great boost to the system. The first fair trade quality mark was in the Netherlands in 1988. From that example, various "Fair Labeling" initiatives arose. In 1997, several of them organized to form the Fairtrade Labeling Organizations International —Fair Labeling International Organization— (FLO). The Spanish member of FLO is Fairtrade Spain, formerly known as the Fair Trade Products Seal Association.

Fair trade and politics

As a historical curiosity, although it should not be understood as something directly related to the current movement, the American anarcho-individualist and mutualist Josiah Warren, enunciator of the "principle of cost" wrote a manifesto in 1841 in which one finds a claim for fair trade, with a philosophy not very different from that of the current movement for fair trade.

Also during the Spanish revolution of 1936, anarchist unions placed stamps on products made in factories collectivized by their own workers (mainly those for export, see UCLEA) so that their final consumers knew that said product was made in a company in which its own producers were the owners. Currently there is a consensus on fair trade between three Spanish political parties: PP, PSOE and IU that usually support different initiatives on fair trade at the local level.

Fair trade stamp

Fair trade turret

The Fair Trade Seal or Fairtrade Seal is the seal that, printed on a product, guarantees that it comes from "fair trade" and has been produced and marketed following the international fair trade criteria established by the Fairtrade Labeling Organizations (FLO) International.

Certified coffees with the Fairtrade-Comercio Justo.

The certification of fair trade products with a seal allows their easy identification and their sale in the usual distribution channels. In addition, Fairtrade certification opens fair trade to all those companies willing to follow fair trade criteria in the production of one or more products. In this way, Fairtrade certification has contributed significantly to the global growth in the volume of Fairtrade products sold around the world.

Fairtrade Spain is in charge within the Spanish State of granting the license for the use of this seal and encourages consumers to know it and opt for Fairtrade products. The Fairtrade Seal Association is a member of FLO International, the international body that supports producers who work with Fairtrade or want to work with Fairtrade and that establishes fair trade criteria or standards for each product.

Fair trade seal for the forestry sector

The Madera Justa seal is the first fair trade seal for the forestry sector and the timber industry.

It is the most complete certification system, since it guarantees that environmental criteria are met such as the legality of the wood, reduction of greenhouse gas emissions and sustainable forest management, social criteria with the principles of fair trade and economic criteria such as guaranteeing that at least production costs are covered.

Certified companies show their customers and suppliers a high level of social, environmental and economic responsibility with their environment.

The Madera Justa seal certifies that the company that meets 81 requirements of its standard is environmentally, socially and economically responsible. These requirements are divided into seven parts that define them by category:

Fair trade and food sovereignty

Fair trade has also been related to food sovereignty. The activist and author Esther Vivas believes that fair trade must assume the premises and postulates of food sovereignty and that the application of the principles of food sovereignty to fair trade means "talking about local fair trade, except for those products that do not are made in our territory; of a fair trade respectful with the environment and controlled by the communities; of fair trade that combats neoliberal policies and multinationals".

WFTO is another seal that guarantees origin under fair trade criteria.

Development of the legal framework

In Europe

• 1991: The European Parliament adopts the “Resolution on Coffee Consumption as a way of actively supporting small coffee growers in the Third World and introducing this coffee into European institutions.”
• 1994: The European Parliament adopts the “Resolution to Promote Justice and Solidarity in North-South Trade”. The European Commission prepares its “Memory on Alternative Trade” where it declares its support for the consolidation of fair trade in the South and North and its intention to create an EC working group on this issue.
• 1996: the Economic and Social Committee of the European Communities adopts an “Opinion on the European Movement of Fair Trade Marks”.
• 1997: The European Parliament adopts a resolution on the banana sector and requests the Commission to facilitate market access to new enterprises that practice Fair Trade. The European Parliament adopts a “Resolution on Social Affordments” and welcomes the initiatives of NGOs carrying out the Clean Clothing, Rugmark and other initiatives that promote Fair Trade.
• 1998: UNCTAD, United Nations Conference on Trade and Development, organizes the conference “Development Partners” and invites the movement of fair trade to participate in the formal conference. The European Parliament adopts the “Resolution on Fair Trade”.
• 1999: the European Commission adopts a “Communication of the Commission to the Council on Fair Trade”.
• 2000: First Final Declaration of the Summit between Africa and the EU that makes explicit reference to Fair Trade. The new Cooperation Agreement between the European Union and the States of Africa, the Caribbean and the Pacific, the Cotonou Treaty, specifically refers to the development of Fair Trade.
• 2004: Communication from the Commission to the Council and the European Parliament: Commodities, agricultural, dependency and poverty chains. Proposed EU action plan.
• 2006: Report on Fair Trade and Development of the Development Commission of the European Parliament. Resolution of the European Parliament on Fair Trade and Development.
• 2010: February: Call for action by the Committee of Regions in favour of fair trade and a comprehensive strategy to promote it.
• 2010: May: opinion of the European Parliament in favour of fair trade, urging the European Commission to favor it in public procurement.

In Spain

• Propositions No of Law adopted by the Commission for Cooperation and Development Assistance of the Congress of Deputies on 19 December 1996 on Fair and Solidarity Trade.
• Law 23/1998 on International Cooperation for Development. Article 13 on education for development and social awareness refers to fair trade.
• Law 30/2007 on Contracts in the Public Sector, adopted on 30 October 2007. The figure of fair trade in public procurement is contemplated.
• No proposal for the promotion of fair trade and responsible consumption, adopted on 11 November 2007 by the International Development Cooperation Commission of the Congress of Deputies.
• The Spanish development cooperation policy recognizes the important work of fair trade. Thus the 2005-2008 Director Plan for Spanish Cooperation expressly supports fair trade cooperatives, in line with the strategic objective of enhancing the economic capacities of aid recipients.
• Proposition No of Law adopted by the Madrid Assembly on 19 June 1996 on fair and solidarity trade.
• Proposition No of Law passed by the Parliament of Catalonia on 20 December 1996 on fair and solidarity trade.
• Law 14/2007 of 28 December of the Charter of Justice and Solidarity with the impoverished countries (the Basque Country).

Criticism

Fair trade has been criticized for resulting in a more expensive final price than traditional products and for requiring complex organizational systems from producers, which often do not correspond to the original production system and the traditions of farmers local.

Fair trade has also received criticism from both sides of the political spectrum. Some economists consider it a type of subsidy that hinders growth. Free market advocates argue that the term is fallacious, since commercial transactions can only occur if the parties involved freely accept them, making it inherently fair. On the other hand, left-wing groups criticize that fair trade does not imply any real change to the current commercial system. Criticism has also arisen from some merchants who say that, since the premises where they are placed are subsidized by public bodies and the employees are usually volunteers from NGOs, it is an unfair system for native merchants, who cannot compete on an equal basis. against these establishments.

Treatment in the media and impact on public opinion

The treatment of the media of fair trade, if we look at Auguste Comte's theory of the functions of the media for social change we see two social functions of the media far above the rest. These would be the function of cohesion or consensus and that of granting status or recognition. Therefore, we can verify that the media are actively participating in raising awareness regarding this type of trade, reporting on most of the initiatives that are carry out in this regard.