The Growing Fair Trade Movement
  By Claire Stoscheck

The term “fair trade” is being used more and more often these days. That’s because people are slowly starting to realize that an alternative to traditional (free) trade is desperately needed, and that fair trade is a viable alternative.

Why is traditional trade not working for the world’s people?

We all hear about why free trade is bad—about how it’s taking away people’s rights and livelihoods and degrading the environment. As globalization spreads, the gap between the haves and the have-nots is widening tremendously, and this is largely due to current trade practices. Free trade agreements such as NAFTA (North American Free Trade Agreement) often put multinational corporations before the well-being of individuals and nations by encouraging the corporations to shop around the world to look for the cheapest workers and resources to exploit. Sweatshops have flourished, often with the help of young children. With the coffee crisis at hand, the situation is dire.

What’s the Coffee crisis all about?

“In lush coffee-growing regions from Central America to Africa, the collapse of world coffee prices is contributing to societal meltdowns affecting an estimated 125 million people, (resulting in) a combustible brew of unemployment, hunger and migration.” (Wall Street Journal, 7/8/02)

This is a crisis that is destroying the livelihoods of 25 million coffee producers worldwide. Coffee prices have fallen by nearly 50% in the past three years to a 30-year low—and it doesn’t look as if that’s about to change any time soon. Coffee producers in developing countries are now having to sell their coffee beans for much less than they take to produce (sometimes only 60% of production costs-i.e. in Vietnam’s Dak Lak Province). Meanwhile, huge corporations selling coffee (i.e. Sara Lee, Proctor & Gamble, etc.) make a hefty profit as they buy coffee beans for much less and sell their products for more.

The humanitarian results of this crisis are tragic. Families caught up in the crisis are turning to illegal crops such as coca (which is used to make cocaine). They are also deserting their land and families to flock to cities in an attempt to find jobs where there are none. Families are forced to pull their children out of schools (particularly girls) and they can no longer afford basic medicines or food staples. Although there are many factors that make fair trade a necessary alternative to traditional trade, the Coffee crisis is a particularly strong one because it is so desperate. Something needs to be done about this crisis now, otherwise millions more will be thrown in to poverty—or worse, the grave.

So what’s to be done about this desperate world situation?

Fair Trade is a viable alternative! Now… WHAT is it exactly?

While the nature of free trade puts multinational corporations first, fair trade puts humans and the environment at the center of trading relations. Businesses committed to fair trade agree to adhere to the following criteria in their relationships with producers (farmers and workers):

*A fair and living wage (in the local context) --- Fair trade products are priced in order for them to provide workers/farmers a living wage, which means that the wages they receive covers their basics living needs and allows them to improve their communities.

* Healthy, safe and cooperative workplaces --- Fair trade products come from democratically run cooperatives and small businesses, allowing workers a great deal of self-determination and ensuring that the work place does not have sweatshop conditions.

* Environmental sustainability --- Fair trade farmers are strongly encouraged to used environmentally sustainable practices. In addition, fair trade businesses/companies often provide their producers with training on these sustainable practices, such as organic farming and shade grown coffee.

* Financial and technical assistance to workers/Long-term trade relations --- Fair trade companies commit to not only building long term relationships with their producers, but also to assisting the producers with technical and financial advice.

* Consumer Education and public transparency --- Fair trade companies commit to operating in a completely transparent manner. In addition they commit to educating the public about fair trade.

* Respect for cultural identity --- In fair trade relationships, the cultural heritage of the producers is respected by the fair trade company.

How does fair trade help people’s lives?

“Due to the coffee crisis, thousands of farmers are fleeing the countryside in search of work in the cities. But thanks to Fair Trade, the 2,400 families in our cooperative are staying on the land because they have access to credit and a decent price for their harvest. They planted corn and beans using their income from Fair Trade, so they are eating fairly well at a time when hunger is a reality for many  of their neighbors.” Merling Preza, PRODECOOP, a cooperative in Nicaragua.

Fair trade seeks out disadvantaged producers, especially women and indigenous peoples, and helps them to create development opportunities that respect their culture and steward their environment.

Fair trade producers earn a living wage, which allows them to buy food, medicines and send their children to school. In addition, it allows them to improve their communities. Fair trade coffee farmers are guaranteed a price of $1.26 per pound as opposed to the pennies per pound that other farmers receive on the open market. This guaranteed price allows the farmer to feed and clothe their families, even when the world coffee prices fall.

Fair trade companies purchase products from worker-owned cooperatives, small farms, and producer associations where workers have a good deal of decision-making power. These types of work places provide a healthy alternative to sweatshop conditions that result from most large-scale manufacturing. In these sweatshops, workers receive a meager wages and cannot freely organize. In addition, most of the profits go to foreign investors and local elites who do not have much interest in working to ensure the long-term health of the communities in which they work. Fair trade farmers and workers work to improve the health of their communities because they have a lot at stake, and the wages they receive from fair trade allows them to do so. Therefore the communities become self-sufficient and self-reliant. The gap between the rich and poor in these communities narrows and more money is invested in projects such as schools, health clinics, child care, and literacy training. Fair trade improves the quality of life for countless farmers, workers and artisans worldwide. It allows them to lead more healthy and fulfilling lives, and allows them self-determination and freedom.

How does fair trade help the environment?

Fair trade producers are strongly encouraged to use eco-friendly practices that are environmentally sustainable. People who live in poverty often have no alternative but to exploit their natural resources in order to survive. Fair trade offers a healthy and sustainable alternative that allows people to have a livelihood without sacrificing their local environment. In addition, because the environment suffers when people suffer, fair trade is a vital prerequisite to a healthy and sustainable environment.

Fair Trade is GROWING!! Statistics:

*At the end of 2001, there were 120 companies offering Fair Trade Certified (Certification is through TransFairUSA) coffee and tea in roughly 7000 retail locations across the US. (That’s up from 33 companies in 1999)

*Fair Trade Certified coffee imports have almost doubled in the US each year since it was introduced in 1999 (1.9 million pounds imported in 1999 and 7 million in 2001)

*Since 1999, TransFair (the US fair trade Certification organization operating under the Fairtrade Labeling Organizations International) has certified nearly 19 million pounds of Fair Trade coffee. These sales have generated more than $15 million in additional income for family farmers over what they would have received through conventional trade.

*Fair Trade Certified cocoa hit the shelves in the fall of 2002. Local business Ithaca Fine Chocolates was one of the first companies to launch Certified Fair Trade chocolate bars in the US.

*In the US, students at more than 100 colleges and universities (including Cornell) are campaigning to bring Fair Trade Certified coffee to their campuses.

* Fair Trade has received major press coverage over the past year including stories in the New York Times, USA Today, Newsweek, and more.

* In 2000, worldwide sales of Fair Trade Certified products grew by 15%. In addition to coffee, Fair Trade tea, sugar, cocoa, bannanas, honey, cut flowers and orange juice are now sold throughout Europe. US fair trade companies hope to bring Fair Trade oranges and bananas to the market soon.

* As of Fall 2002, 300 Fair Trade cooperatives, representing 500,000 farmers and their families, sell coffee through the Fair Trade market.

* In July 2001, 61 members of Congress signed a letter to bring Fair Trade Certified coffee to the US House of Representatives dining halls, and urged Starbucks to increase its commitment to Fair Trade.

Fair trade is growing! More and more people are coming to realize that it is indeed a viable and workable alternative to free trade that also ensures economic and social justice. Now is the time to get involved. There are millions of livelihoods (and lives) that could be saved. (Statistics from www.transfairusa.org)

Fair trade is literally a lifeline for thousands of farmers (during the coffee crisis especially). Here is …

How YOU can get involved:

1. BUY FAIR TRADE: Whenever and wherever you can!! As a consumer, you have massive influence on the market by making conscious decisions about what you buy. Stop buying Folgers--- and buy Fair Trade Certified coffee and chocolate and tea, etc! Look for the Fair Trade label.

2. ASK FOR FAIR TRADE at stores that you frequent which do NOT sell Fair Trade items. Ask to speak with the manager and explain why you think it’s not only important that they sell fair trade, but also that it’s quite economically viable for their business. (A common misconception is that Fair Trade items are more expensive, but since middle men are cut out of the picture, Fair Trade items end up costing the same or less than most other high quality products). Fill out comment cards as well.

3. EDUCATE YOURSELF, your friends, and your community. Read up on Fair Trade and why it’s important. Check out the web-sites listed in this article. And then, spread the word!

4. WRITE LETTERS TO THE EDITOR and help to get fair trade in the news! The more people that know about it, the more consumers will buy it, and the more the movement will grow and flourish!

5. CHOOSE FAIR TRADE coffee for your workplace, your school and your place of worship.

6. JOIN CAMAPIGNS to encourage giant corporations that sell coffee to offer Fair Trade. TransFair (www.transfairusa.org), Global Exchange (www.globalexchange.org) and Co-Op America (www.coopamerica.org and www.fairtradeaction.org) are working on massive campaigns to bring Fair Trade coffee into mainstream coffee that the majority of Americans buy.

(Resources used for this article: TransFairUSA, Co-Op America Quarterly, and Fair Trade Federation)