The Future of Fair Trade
Created by: Shannon Campbell
December 13, 2012
Q: Is Fair Trade a good idea? Does it make sense? Will it spread further?
A: History: Fair trade has always been relevant in some sort of existence; from when the early settlers began exchanging goods for services, to today, where we can find a variety of food and product at our local market. But throughout these practices, it can be noted that trading, or exchanging, has not always been “fair”. For example, documented by the Stanford Social Innovation Review, the mercantile system in the 16th-18th centuries of Western Europe. They had a system which was nationalized to try to benefit their mother countries. During this time, the Dutch East India Company was protected by tariffs from local competition while being a monopoly. Their workers were either employed by enforced slavery or indentured servitude (which ultimately results in unfair and dangerous working conditions, little to no pay, etc.). Not until the 1960’s, the fair trade movement began to speed up, where criticism was finally being placed upon large and industrialized companies that were overusing their power towards less industrialized and poorer countries. Companies during this time, such as Ten Thousand Villages and SERRV International tried to create fair supply chains for their producers. Since then, the quest continues, with companies (mostly craft and agricultural related) trying to create fair and balanced trade.
Present-Day & Future: Does Fair Trade make sense? Of course it does. It improves so many aspects of the world around us, and especially those involved in creating and producing the products. Fair Trade, at the rate it is going, should spread further because of the awareness that it is projecting throughout the world. It is benefiting every one involved, from the producers of the garments, to the customers who are able to purchase a product that they feel satisfaction out of. Specifically with the producers, who can vary from the farmer cultivating the cotton, to the garment-producing workers in the factory, it is improving their daily life by providing opportunities to advance their standard of living (ex. Fair Trade Premiums).
Q: Can Fair Trade have an impact on fashion and apparel? How?
A: Fashion and apparel can meet the Fair Trade standards by both manufacturing and branding.
Manufacturing: FLO-CERT is what makes Fair Trade, “Fair Trade”. Manufacturers can be certified by specifications. Ultimately, it guarantees that a “quality management system is in place”, and there is “transparency in all processes”.
Branding: Fair Trade cotton can be sourced from purchasing the seed cotton from a certified producer, as well as other non-cotton fibers. The garments must then be produced in a certified Fair Trade factory that meets the required Fair Trade standards. There is also a 1-10% Fair Trade premium for workers (depending on wage levels) to decide on how to spend it (disaster-relief foundations, infrastructure improvements, etc.).
Q: What opportunities do you see for growth in Fair Trade in the future? Any new products or commodities that could be sourced this way?
A: Fair Trade points out four benefits regarding the overall process; including stable prices, the Fairtrade Premium (helps producers financially with education, healthcare, etc), partnership, and empowerment of farmers and workers.
All of these benefits ultimately help those involved with the supply chain, from the producers to the management, to the committees to the customers. If this supply chain continues to strengthen, the advancement of the producers will help show the world that Fair Trade can really make a difference. So hopefully, a variety of new products and commodities can be sourced this way in the new future. I can really see anything being a part of Fair Trade, from the shoes to handbags, from phones to computers. Although this transition won’t probably happen any time in the next five years, if the Fair-Trade trend continues and strengthens, it could possibly happen within the next few decades.
Q: What other new concepts could be brought to ethical international trade in addition to Fair Trade? Can you find any examples?
A: The concepts of ethical trade and fair trade do have slight differences. Specifically, ethical trade focuses on reducing harm caused by trade, and fair trade tends to focus towards the development and improving the countries involved in trading process. Although the concepts of ethical international trade and Fair Trade are slightly different, they do have the same focus in improving the world around us. Ultimately, I can see new concepts being introduced within the next few years, specifically with products that have not been yet popularized by the Fair Trade world, which would be beyond coffee and certain apparel products. I hope to see more branded products, even designer and luxury products, make more of an effort to pronounce themselves as part of the Fair Trade movement. The most reputable company that can be seen at nearly every supermarket is Ben & Jerry’s, which is Fair Trade certified. With the right marketing and advertising, Fair Trade can really branch out to famous companies, such as Ben & Jerry’s, and become more readily available to consumers. Although it still may be at a higher price, if it is more readily available, and with more of a variety to choose from, Fair Trade products can be incorporated into every home.
Q: Are there any interesting companies benefiting from Fair Trade? How are they doing it?
A: When doing further research on companies benefiting from fair trade, I stumbled upon Maggie’s Organics. Founded and developed in 1992, they are the “oldest surviving organic apparel company in the US” according to their official website. Maggie’s Organics includes both clothing and toys, which are made from certified organic cotton and wool fibers. But what is most important, is that they use both fair trade production and distribution methods. The company is based in worker-owned co-operatives, which are located in Nicaragua, North Carolina, and Costa Rica. They also have a huge focus on their carbon footprint, and help by minimizing packaging and product transportation. Investing with the Jubilee House Community, they helped create “The Fair Trade Zone”, in Nueva Vida, Nicaragua, which is now a 100% worker-owned sewing co-operative. It is officially the first worker co-op in the world that has been recognized as a free trade zone.
Source: http://www.maggiesorganics.com/
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