Fair Trade

Fair Trade is a trading partnership, based on dialogue, transparency and respect, that 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 engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.The International Fair Trade Charter, 2018

By seeking social justice in « fair » trade exchanges, mainly between the Global South and the North, Fair Trade is questioning critically globalisation and the dominant economic model. And it allows the reappropriation of commercial exchanges by those who practise them : small producers involved in sustainable ways of producing and responsible involved customers on the other end of the bargain. The idea is not to « help » but to favour the empowerment of people and communities to reach better livelyhoods and dignity, with the famous slogan : « Trade, not aid ». It is applied to food (where it confluences with organic food), fashion and all types of crafts.

You can read the WFTO 10 principles on Fair Trade here, mainly :

• creating opportunities for small producers ;
• providing decent work and fair wages ;
• empowering women ;
• prepayment of the product, especially for food ;
• just price : includes production costs, plus costs linked to a better education, health, food, and projects of the community, allowing the producers to be protected from global market prices fluctuations;
• no child or forced labour ;
• ecological practices,
• transparency and accountability

etc.

Solidarity economy recognises fair trade as one of its sectors of activity and fair trade actors have actively participated in the international structuring of the solidarity economy movement and in the World Social Forums. Their principles are at the very heart of the struggles of peasants and craftsmen in the South : associative, democratic, reciprocal, respectful and social justice practices, as well as the multiple sources of financing, A North-North vision, as well as a South-South one, marks the evolution of Fair Trade, merging more SSE and Fair Trade. In France, for example, since 2014 the system of Fair Trade was opened to groups of farmers and craftsmen producing in France for French markets. adapting FT principles to the conditions of production and marketing in France. : Making fair trade local, hence "Origine France", an official designation, half of which is certified both organic and fair trade by approved certifiers. Finally, they share a same ethical, social and political vision ; the transformation of the economy, as can be seen in the documents « Les propositions des acteurs du commerce équitable pour une économie transformatrice au service de l’humain et de la planète » presented by Commerce Équitable France, in 2022 and « Propuestas para la construcción de una economía más justa, democrática y sostenible » by REAS in 2019.

History of the concept

"The creation of fair trade is the result of an agreement between international solidarity associations in Europe and farmers' or craftsmen's organisations in southern countries. In France, fair trade was launched in the mid-1970s and has developed successfully to the present day, despite its internal contradictions and an unfavourable economic and political environment. It has always been associated with the solidarity economy, even though their origins and trajectories are different.

(...) The principles of this new trade were: North-South solidarity, collective and democratic self-organisation of producers, autonomy, education, fair prices, technical support, local development and criticism of international trade. For around twenty years, fair trade developed within the circles of militant solidarity organisations and the development of specialised shops. The 1990s marked a first transformation. A number of players in the Netherlands, Germany and the UK set up certification bodies to define precise and verifiable standards to be met, with the aim of introducing "labelled" products into supermarkets to significantly increase sales while guaranteeing consumers the "social quality" of the products. This meant opening up the system to other categories of players: farming businesses in the South with organised workers, certification bodies, importers and supermarket chains. The standards include requirements on labour rights, pre-financing and environmental protection, but link the "fair price" to international market prices. From an economic point of view, this development is reflected in the refocusing on agri-food products sold in supermarkets. From a political point of view, it has led to a major division between those who are banking on the volume of supermarkets and those who are advocating development in specialist shops. This division still persists, even though massive promotional campaigns have won the day for the advocates of standardisation, supported by supermarkets and governments, in terms of sales figures. Producers in southern countries are pragmatic and are not opposed to change, but are demanding that the founding values be respected. To this end, they criticise the incorporation of large farms and demand the effective participation of producers in the development of standards. This latter issue led to the creation by producers of their own label.

Fair trade standardisation, certification and advertising campaigns have boosted demand and made fair trade a genuine niche market (growing by up to 20% a year). This eventually attracted the interest of major traders and governments that had previously been reluctant. As a result, the 2000s saw products from multinationals certified as Fairtrade, as well as processed foods containing only a few Fairtrade ingredients. Little by little, governments are regulating practices by defining the concept, approving standards and authorising "labels". From a socio-economic innovation "invented" by North-South solidarity associations and producers, fair trade is becoming a highly valued commercial success story. While they have had to adopt some of their own economic and regulatory standards, they have not given up on promoting their own values and practices. These are just the first stages in an ongoing process of adaptation, in which the balance of power is always present and decisive. The unanswered question is how to succeed in maintaining the essential elements of the approach: the primary needs of producers and consumers and the protection of the biosphere".

Public policies associated with this issue

France

As a result of its breakthrough, fair trade has been recognised by the public authorities since the law of 2 August 2005, followed by 5 articles of law regulating its activities in terms of definition, standardisation, certification, marketing, financing and awareness-raising. As Arturo Palma Torres puts it: In 50 years, fair trade players have managed to gain recognition from the markets and the state.

The French Fair Trade Act (2005) offers a number of tools that are having a positive impact and are based on the commitment of economic players.

   * Co-responsibility: commercial contracts, for a minimum of three years, give farmers visibility for the future and, for buyers and consumers, security of supply. 
   * Transparency on origin, prices and margins. 
   * Collective and democratic organisation: a specific share, paid in addition by the buyer, is reserved for joint projects decided by the community. It is based, in France and internationally, on a strong democratic life.