The very existence of fair trade depends on its ability to guarantee fairness in its relationships with producers, consumers and the environment. In Malta fair trade is represented by the world shop L-Arka which is run by an officially registered social cooperative of volunteers called Koperattiva Kummerc Gust (Fair Trade Cooperative). Thirty years of experience of fair trade have shown that keeping fair trade’s high standards is not as easy as may at first appear. But for an initiative which prides itself on fairness this guarantee is essential. And L-Arka, whose members have bound themselves legally not to benefit from the profits made because these are reinvested in initiatives of ethical trade, is understandably serious about these guarantees.

The international fair trade movement binds all those who promote themselves as agents of fair trade with very strict rules. Having all the good intentions in the world just isn’t good enough. L-Arka is two years old; the international fair trade movement is over thirty years old and L-Arka is duty bound to learn from the experience of thousands of activists and literally thousands of shops who have been involved in this kind of trade for over three decades.

 Defining Fair Trade 

 Perhaps the most important development in the story of the international fair trade movement has been the definition of which products (and organizations) are “fair” (and therefore which aren’t). This is the crux of it all. In fair trade, producers receive a fair price for their goods and advances on orders. There is now a relatively clear, though “dynamic” procedure that establishes what a “fair price” means: a fair price means that workers in a particular disadvantaged community are paid enough for their work in order to be able to provide health care, education, and other better conditions of living in general for their families and communities. That is why a fair trade quality product cannot normally be cheaper than mainstream products – after all fair trade exists precisely to put right the gross injustices in “normal” international trade, to give workers in the South a fair price.

Advances on orders and continuity of orders make it possible for communities to make a solid beginning and to plan ahead. In poor countries, workers and producers have to face the ups and downs of the international market economy that is dominated by the richer countries and by the often ruthless transnational corporations. Fair trade practises a more human, environment-friendly relationship between producer and client: no one’s at the mercy of someone more powerful. The purchase and marketing of the producers’ goods are conducted according to high ethical standards which are known and established. At the end of the day, it’s the movement (not an individual) that establishes the general standards, and this safeguards the normally disadvantaged workers not only from ruthless dealers posing as doves but also from well-meaning but misguided activists.

In fair trade, so-called alternative trade organizations work with producers to provide quality products, making sure that sources, production and workplaces do not exploit people or the environment.

Products have meaning above their tangible attributes: consumers are informed about the people who make the products they purchase, increasing their loyalty and understanding that their purchasing power makes a difference. It is not possible to do fair trade without giving information: in more senses than one, the world shop is a hub of activity and activism, providing, for example, development education that reaches beyond the story of a single, albeit fair, product. Moreover, fair trade encourages cultural exchanges between people in the South and people in the North.

Throughout these years, the fair trade movement has created mechanisms that ensure that the fair traders keep the standards that they set themselves.

 Independent Certification 

An important element in these mechanisms is the role of a number of independent organizations that investigate various fair-traded products to see whether the claims made by the producers and distributors of the products are true. The FLO (Fair Trade Labelling Organizations International) brings together most national labelling organizations like Fairtrade and Max Havelar that share the principles of democratic organization; recognized trade unions; no child labour; decent working conditions; environmental sustainability; price that covers costs of production; social premium to improve conditions; and long-term relationship. “An effective system of labelling is essential to inform consumers, fend off fakers and encourage the rest.” The FLO monitoring programme “ensures that all the trading partners continue to comply with fair-trade criteria and that individual producers benefit” (New Internationalist, no. 322,  April 2000).

But world shops are also working on a system by which they themselves monitor and evaluate the producers they buy from by drawing up detailed reports, making visits and communicating with each other on a regular basis. This way they can be sure that the high standards of fairness that they profess are being met.

The NEWS! world shop network, a grass-roots movement with approximately 100.000 volunteers working in over 2.500 World Shops in Europe, believes that “a mutual, transparent and trustworthy internal monitoring process of producers, importers, shops and labels” is the best way to be sure that promises are kept, because such a well-established communication flow “would supply all partners with detailed information”. Information of this kind ensures the consumer “that Fair Trade and the World Shops are reliable” and it shows “the big advantage of the ‘classic’ Fair Trade approach, with its focus on development and on continuity”.

The years of experience these fair trade organizations have and the relationships they have built make this monitoring more professional and effective. At the annual general meeting of the Italy-based CTM, one of Europe’s largest groupings of world shops, two members of the Maltese cooperative discussed these issues with their European colleagues and are now investing that experience in their own cooperative and the daily running of L-Arka.

Koperattiva Kummerc Gust has been a member of IFAT (International Federation for Alternative Trade), a global network of 154 Fair Trade organisations in 49 countries, since 1999. Earlier this year it became the first non-Italian partner of CTM - Altromercato.

 People before Profit

Well-known activist Carol Wills who is secretary of IFAT identifies six essential principles that European fair trade importers commit themselves to: paying a price for products which ensures a “fair” return to the producer; buying from groups that are organized participatively, in such a way that the producers or workers are kept informed about what is going on, are involved in some way in management and have a right to negotiate rates of pay; buying from groups that provide good, safe and healthy working conditions for producers; buying from groups that are striving to provide equal opportunities for both men and women; not tolerating exploitative child labour; actively supporting organic farming and providing an internal quality control service; and researching and using ecological and recyclable materials.

The aim of L-Arka and the international fair trade movement in general is for all trade to become fair. That can happen through a gradual process that puts fair-traded products into mainstream trade. This has already happened in the case of Cafédirect in the UK: despite being 10% more expensive than conventional competitors, this instant coffee is selling well in British supermarkets. The delicate passage which would ideally eventually lead to the mass popularization of fair trade can only succeed if the movement continues to grow at its current rate and make sure, as it has done until now, that it can monitor itself effectively in order to guarantee that people really come before profit.

Adrian Grima

December 2000

Għall-Ewwel Paġna  |  Back to the First Page