Fair Trade Critique

The following entry is taken from the blog of one of our partners in the Fair Trade movement. We have been thinking more about the direction of the movement in the last year. This article does a good job of lining out some of the struggles that will need to be dealt with if Fair Trade will live up to some of the promises that have been made.

http://www.handmadeexpressions.net/blogs/fair-trade/1747592-challenges-to-fair-trade

Challenges to Fair Trade

posted 2010 Jul by Catherine Vouvray

by Alison Hanson

Since I began working with Handmade Expressions, I have become more conscious of the happenings within the Fair Trade movement – both its accomplishments and short-comings. While I am impressed with the recent expansion of Fair Trade, its actual reach and effect seem to be limited. Before Fair Trade can really continue to progress, it’s important for those within the movement to pause for a bit of self-reflection. Certain challenges to the Fair Trade movement exist in each level of the chain from production to consumption. Below are several that should be addressed:

1. Overall Structure of Fair Trade: The system of Fair Trade itself was founded on contradictory principles. It was created to be an alternative market structure that would bring greater equity in trading relationships; however, it intends to do so within the very system that created such trade inequities. In essence, Fair Trade is in opposition to yet operates within a capitalist market system. It still promotes a consumerist mentality, though aims to alter the values of consumption – namely, the fixation on price. There is also a distinct division amongst those working within Fair Trade, taking either a faith-based or activist approach. Those working in Fair Trade need to reconcile their differences to establish the shape and direction of Fair Trade going forward.
2. Producers: Despite the advancements in Fair Trade, producers have not shared equally in its progress. Fair Trade was created to bring benefits to the producers – market access and empowerment – yet, as of now, they are still at the mercy of Western markets and businesses. Though Fair Trade does indeed bring social and economic benefits to producers and their communities, those benefits are limited and not enough to truly bring marginalized producers out of poverty. Rarely are cooperatives able to compete and sell their goods on their own; rather, artisans and farmers constantly rely on employment and purchases from importing companies. This reinforces a paternalistic approach to trade and development, keeping producers under the control of businesses and labeling organizations in the US and Europe. If producers are to truly benefit, the focus of Fair Trade needs to shift towards empowerment and changing the system of trade.
3. FT Labeling Organizations: The bureaucracy of the Fair Trade labeling and membership organizations causes skepticism from both those within and outside of the Fair Trade movement. There exist major discrepancies in certification on a product or company level. While producer organizations have to prove their commitment to sustainable practices, such a requirement becomes a barrier to participation in Fair Trade for many marginalized producers. Large businesses, on the other hand, don't have to show anything. Standards for Fair Trade certification and membership need to be established, clarified, and enforced periodically, and should be homogeneous, regardless of whether the group is a small cooperative of producers or a large business.
4. Businesses: A greater emphasis on education and a commitment to sustainability need to be implemented by all levels of business, from importers to retailers and large corporations. There are differences in the ways Fair Trade companies operate – following profit- or movement-driven strategies – which may or may not be compatible. The incorporation of Fair Trade products by large corporations has become a particular point of conflict. The enormity of these corporations has the potential to massively grow Fair Trade, both in regards to awareness-raising and fair employment. However, this has proven to be a double-edged sword, as corporations often instead use their voice to tout the company's social commitment, regardless of the fraction of the product that actually is Fair Trade. Large and small companies alike need to have more than a short-term commitment to sustainable practices and use the resources they have to raise awareness about the impact purchasing Fair Trade products can have.
5. Consumers: Consumer consciousness needs to be raised to complete the Fair Trade system. Though most people are aware of environmentally- and socially-sustainable materials and practices, these aspects usually don’t take priority in purchasing decisions. People must learn to shop responsibly. This requires a change in the values of consumption, placing those of sustainability over prices. Individuals must also demand accountability and support of fair practices by businesses and regulatory bodies. If Fair Trade is to operate within the current market system, consumers need to realize the impact of their purchasing power beyond that of monetary value.

A holistic approach to Fair Trade needs to be taken by those within the movement – empowering producers, defining standards within labeling and membership organizations, ensuring sustainable practices and transparency by intermediary companies, and educating and engaging consumers. An obvious issue that has been left out of the above is the potential impact of governmental regulations on fair labor practices and environmental standards. This is because we have yet to see what effect governments and regulations could really have on Fair Trade. Those within the movement need to take the first step in encouraging progress for Fair Trade.