Fair Trade acknowledged by public authoritiesFair Trade is becoming increasingly popular with our elected representatives, echoing the growing interest shown by ordinary citizens in an ethical approach to consumption. One of the first institutions to acknowledge the new system of trade was the European Parliament, which made the symbolic gesture of drinking Fair Trade coffee as early as 1988. At a more concrete level, the 1998 Fassa report called on the Commission “to adopt the facilitation of Fair Trade as an integral element of the EU's foreign policy, aid cooperation policy and trade policy”. It also encouraged “the creation of a common European Fair Trade label” and called on the Commission “to institute WTO-compatible mechanisms to support Fair Trade initiatives in a non-discriminatory way”. In response, the Commission in 1999 adopted the definition of Fair Trade issued by the movement, recognising the role played by this system of trade as a vehicle for development cooperation: “The promotion of Fair Trade comes under the framework of the Community's broader objectives in relation to development cooperation, in other words the fight against poverty, economic and social development and, in particular, the gradual integration of developing countries into the world economy.”[1] When the Commission replaced the Lomé Convention with the Cotonou Agreement[2], it renewed its commitment to Fair Trade[3], which was referred to in the civil society consultation process and mentioned in the annexes and compendium of the Cotonou Agreement.[4] Article 64 set out the strategy for European cooperation in this area: “Co-operation shall provide support to both producer groups in developing countries and NGOs within the EU through budget headings and EDF resources. This support shall be used to finance the launching of new product lines, consumer awareness campaigns, educational activity and capacity building.”
MEPs keen to promote Fair Trade
In June 2006, the European Parliament adopted a report on Fair Trade and development by an overwhelming majority. MEPs’ aim with this report was to encourage Fair Trade, “which has proved to be an effective means of reducing poverty, particularly in the world’s poorest countries.” In its 2006 Report on Fair Trade and Development [5], “The European Parliament believes that Fair Trade, in order to eliminate the risk of abuse, needs to fulfil a number of criteria which are defined by the Fair Trade movement in Europe as being: a) a fair producer price, guaranteeing a fair wage, covering the costs of sustainable production and living. This price needs to be at least as high as the Fair Trade minimum price and premium where they have been defined by the international Fair Trade associations, b) part payments to be made in advance if so requested by the producer,) long-term, stable relations with producers and producers' involvement in Fair Trade standard-setting, d) transparency and traceability throughout the supply chain to guarantee appropriate consumer information, e) conditions of production respecting the eight International Labour Organization (ILO) Core Conventions, f) respect for the environment, protection of human rights and in particular women's and children's rights and respect for traditional production methods which promote economic and social development, g) capacity building and empowerment for producers, particularly small-scale and marginalised producers and workers in developing countries, their organisations as well as the respective communities, in order to ensure the sustainability of Fair Trade, h) support for production and market access for the producer organisations, i) awareness-raising activities about Fair Trade production and trading relationships, the mission and aims of Fair Trade and about the prevailing injustice of international trade rules, j) monitoring and verification of compliance with these criteria, in which southern organisations must play a greater role, leading to reduced costs and increased local participation in the certification process, k) regular impact assessments of the Fair Trade activities;”
Tax cuts for Fair Trade products Amongst other things, MEPs ask the Commission and the Council to consider lowering VAT on Fair Trade products and abolishing import duty on Fair Trade products originating from developing countries. In addition, they call on the Commission to provide aid for Fair Trade: to developing countries in the form of technical assistance in particular, to help them apply various European standards and rules on origins, develop processing, support capacity-building programmes, encourage paying Fair Trade producers for orders in advance and contribute to the distribution of Fair Trade products in local markets, focusing in particular on projects led by women;
within the EU through measures designed to support Fair Trade awareness-raising programmes, public campaigns, impact studies, best practices and assessments of traceability and responsibility, to support the marketing of Fair Trade products and to provide practical support for workshops.[6] Aid for tradeIn its latest communication on Aid for Trade, the Commission notes: “Voluntary initiatives giving consumers assurances relevant to sustainable development, such as Fair Trade, eco-labels, and comparable corporate schemes, are also important instruments with potential for reducing poverty and promoting socio-economic development, which a joint EU strategy should address.”[7] Fair Trade mentioned in coalition agreementFair Trade is mentioned in the Agreement signed on 18 March 2008 by the political parties forming the coalition government: “Because free and fair trade can contribute to growth in developing countries, the Government will work to make the Doha Development Round a success. Within the framework of agreements negotiated by the European Union, amongst others, the Government will safeguard the interests of developing countries, including the South-South dimension. Furthermore, the Government will support actions promoting Fair Trade and will encourage Parliament to improve its legal framework and in particular to monitor conformity with social and environmental standards.”[8] The Federal ParliamentVarious bills aimed at recognising Fair Trade have been brought before Parliament by the PS/SPA (Socialist Party/Social Progressive Alternative Party), Ecolo (Green Party) and the CDH (Humanist Democratic Centre). These bills should result in a joint bill which would then be passed or rejected by members.
Fair Trade part of Belgium’s development cooperation strategy
Belgian Development Cooperation has compiled a strategy paper on the social economy, in line with the law of 25 May 1999[9]. One of the three sections of the paper deals with Fair Trade and, like the European Union, recognises Free Trade as an instrument for development and combating poverty. The most notable feature of the strategy is that it sets out to provide three kinds of support: support for producers, particularly with product development; support for marketing, through a mechanism guaranteeing the prepayment of orders; and support for raising consumer awareness during Fair Trade Week.
The Federal Sustainable Development Plan 2004-2008[10]
The Belgian Federal Sustainable Development Plan sets out the measures to be taken simultaneously at various political levels and in various sectors, following consultation and coordination. Though not binding, it defines the framework of strategies to be followed. Measure 16 states: “A strategy promoting the production and consumption of sustainable products will be developed in consultation with the regions and players concerned (sectors, NGOs, consumer associations, etc.). The various working groups will begin work from the start of 2005. The implementation of each action of the strategy will commence in 2007 at the latest. The strategy to be developed may also be supported by and draw on the following actions: At European level: advocating the integration of existing labels and the development of a single label covering the whole life cycle (social, environmental and economic).
In the meantime, promoting existing statutory labels: environmental labels, socially responsible production labels, Fair Trade labels, the FSC (Forest Stewardship Council) label, (…), etc.”
Ministerial CircularA ministerial circular dated 27 January 2005 contains “recommendations for the purchase by public authorities of more environmentally friendly products produced in social conditions which respect human dignity.”[11] Regarding coffee, the circular advocates “supporting organically grown, Fair Trade products. Choosing a coffee that meets the following environmental/ethical criteria supports sustainable development: Employing production techniques that respect particular ecosystems and help to conserve natural resources, avoiding as far as possible – or preferably completely – the use of chemicals. Prioritising overall economic development by concentrating on improving production techniques and on diversifying production in order to reduce producers’ dependence on a single product as their source of income. Fostering overall social development through various programmes aimed at improving the living conditions of members and their communities. These projects may relate to hygiene, housing, education, water supply or other needs identified by members. Improving production quality so that the organisation can expand its market in both conventional and Free Trade sectors.Proof that the criteria listed above have been met can be provided through labels such as FLO labels (e.g. Max Havelaar), organic farming labels (e.g. Biogarantie, organic farming, Nature et Progrès) or in other ways.”[12]
[1] http://europa.eu.int/scadplus/leg/en/lvb/r12508.htm
[2] The largest cooperation agreements between two entities, namely the European Union and the African, Caribbean and Pacific (ACP) countries
[3] Page 25, point 2.6.3., Articles 61, 62, 63 and 64
[4] http://europa.eu.int/eur-lex/en/com/cnc/2000/com2000_0424en01.pdf
[5] European Parliament, Report on Fair Trade and Development (2005/2245(INI)).
[6] http://www.europarl.europa.eu/news/expert/infopress_page/028-9499-187-07-27-903-20060629IPR09384-06-07-2006-2006-false/default_en.htm
[7] http://eur-lex.europa.eu/LexUriServ/site/en/com/2007/com2007_0163en01.pdf
[8] Page 40, chapter on foreign policy
[9] Cross-sector strategy paper: social economy, Federal Public Service Foreign Affairs, Foreign Trade and Development Cooperation, Directorate-General for International Cooperation, Strategies Directorate D20. Paper approved by the Secretary of State in November 2002
[10] www.plan2004.be
[11] www.guidedesachatsdurables.be
[12] www.guidedesachatsdurables.be
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