by Chantal Havard

From May 1 to 15 2005, National Fair Trade Weeks will be celebrated all across the country. Those two weeks, happening for a fourth year, are aimed at increasing awareness about fair trade and its impact, by organizing information, education and tasting events, as well as cultural events. The slogan chosen this year is: “Small act, big impact!”, because as citizens and as consumers, what we buy has an impact: on the producers, on the environment, and on the economical models we wish to support. To buy a fair trade certified product is to support fair and good working and living conditions for producers in developing countries. But let’s start at the beginning.
What exactly is fair trade and how did it start? Fair trade was born some 50 years ago in Europe as an alternative and a response to the international trade system’s incapacity to address the needs of poor people in developing countries. It is both a citizen and consumer’s movement, as it enables people from the North to make a difference in lives of people from the South, by choosing to buy products that have been fairly traded. The main players in the fair trade sector have agreed on this common definition of fair trade:
“Fair trade is a trading partnership based on dialogue, transparency and respect, which seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers-especially in the South. Fair trade organizations (backed by consumers) are actively engaged in supporting producers, in raising awareness and in campaigning for changes in the rules and practice of conventional international trade.”
Why is fair trade certification important? (The banana example)
Benefits for small-scale producers: Without direct access to buyers in northern markets willing to pay a fair price, small-scale banana farmers receive only a fraction of their harvest’s worth. In fair trade, the producers are organized into democratically-run co-operatives and receive a fair price for their crop, no matter how the market fluctuates. These minimum prices vary by country and organic status, and are designed to cover the costs of sustainable production and provide a decent standard of living for their families. In addition, small farmers receive a fair trade premium on top of the selling price. Co-operatives use this fund for business and human resource development, as well as social and environmental projects.
Benefits for larger plantations: Plantations also receive the minimum fair trade price which covers basic production and labour costs. The fair trade premium goes into a fund managed jointly by union representatives and the banana plantation management. A portion of this premium is designated for business support, which ensures that workers are paid adequate wages. The remaining premium is used for projects determined by the workers’ union, just as a co-operative does in a small-scale production.
Benefits for plantation workers: fair trade ensures that plantation-owners can and do provide fair wages to their workers. Several recent media stories have told of banana farm workers in Central and South America who have been intimidated and even attacked for trying to unionize. Fair trade standards ensure that management respects the rights of workers to be part of unions.
Benefits for worker health and the environment: fair trade certification requires that producers use sustainable agricultural practices which protect workers and the environment. On most non-fair trade and non-organic banana plantations, dangerous pesticides are used throughout the growing and harvesting process. International standards for pesticide use are often disregarded by plantation owners and unknown to workers. Neurological disorders including muscle pains, nausea, and dizziness; organ damage to eyes, liver, and lungs; and even sterility in male workers are ailments that banana farmers and workers face because of exposure to these chemicals. Fair trade certification ensures that farmers adhere to all national and international legislation regarding the use and handling of chemicals, and that the most dangerous are not used at all. Although it is not a formal requirement, most of fair trade certified bananas and mangos are also certified organic.
What is TransFair Canada?
TransFair Canada is the only independent, not-for-profit certifier for fair trade products in Canada. TransFair is one of the 17 members of FLO International (Fair Trade Labeling Organizations), the worldwide standard-setting and certifying organization. TransFair Canada has two main areas of activity: the certification of products and public education work, in order to increase awareness on fair trade and build the market for products.
Fair trade labelling began in Canada in 1996. Coffee was the first product made available and is still the most widespread. Fair trade certification monitors the flow of fair trade goods from producers to final package, through a process of reporting and auditing. It also guarantees that all trading partners comply with standards and that producers from developing countries really do benefit.
Standards set by FLO might differ slightly depending on the product and method of production. However, in general, small scale farmers must be involved in a democratically organized cooperative and plantation workers must have the right to unionize. Health and safety standards must be obeyed and programs implemented to improve environmental sustainability. Production facilities and organizations are inspected regularly and have to report to FLO. Prices paid for the product must cover the cost of production, a social premium paid to improve working and living conditions. Advance payment and long term contracts are given to avoid producer debt. The standards are constantly reviewed, by the standards and policy committee.
How can a Canadian company become licensed by TransFair? The company has to fill an application and demonstrate its will and ability to carry and market fair trade products. It must have a financial and accounting system that allows it to keep track of its products. If the application is accepted by the certification committee, the company has to report every three months. They pay at least the minimum price to farmer cooperatives or plantations with licence fees calculated according to the volume of products sold, and are audited on a regular basis.
What are the benefits for the industry? This is an investment in quality and in a sustainable supply for businesses. It ensures that farmers can earn enough from their crops to continue producing quality. Farm workers who receive adequate wages and benefits are more productive, contributing to the overall efficiency of the supply chain. Direct relationships with growers allow companies to benefit from consistent, long-term access to quality products. The consumer demand for socially responsible goods is rising. Fair trade certified, the most consumer-recognized label of social responsibility, is becoming an invaluable asset to businesses across the country.
What are the benefits for the consumer? Choosing to buy certified products (such as bananas, coffee, tea, chocolate, sugar and sports equipment) means having access to high-quality products, which have been cultivated in good working conditions, with respect for farmers, workers and for the environment. It is about gaining a better understanding of where the food that we use comes from, who has made it and under which conditions. It is about realizing that Canadian consumers have the power to change things and make the world a better place for all.
So mark your calendar for May 1-15, 2005, and be part of the many joyful events that will take place during National Fair Trade Weeks. You will get a chance to meet with Canadian fair trade companies, learn more about the benefits, sample wonderful products and feel more connected with the people who work hard to produce our daily goods. Contact TransFair: Chantal.havard@transfair.ca
www.transfair.ca