Friday May 18

Why not Fair Trade?

"Give full measure and full weight in justice, and wrong not people in respect of their goods"

Qur'an 11:85

 

Talk of Fair Trade is rife amongst today’s idealists but what does it actually mean?

Basically it is a moral ideology; it is a way of dealing with the unacceptable problems that arise from free market trade.  First and foremost it gets fairer pricing for third world producers; alongside this it seeks acceptable working conditions, gender equality, and encourages environmental sustainability.  This is all maintained by strict monitoring and paid for by having a premium included in the prices.

A little note here, Fair Trade is the movement itself while ‘Fairtrade’ is the mark that allows us to identify the products.  I’m sure you’ve seen the green, blue and black logo on some non brand products such as coffee or chocolate; well all these products are certified to meet the ethical standards of Fair Trade.  These standards are for both the makers of the product and for the traders who bring the goods to our shelves.

So does it make a difference what sort of sugar you buy?  Of the $2.21bn spent on Fair Trade products there was a 70% participation of women in the making of non-agricultural products (IFAT, 2006), all of the products had minimum working conditions and adherence to international child labour laws, and 7 million people in the poorest areas of the world directly benefited (Fairtrade.org).

That’s not to say everyone agrees.  Some economists argue that Fair Trade distorts prices and encourages existing problems of inefficiency and over supply.  Others say that Fair Trade discourages industrialisation and deters farmers from using mechanical technology.

Of course that’s not the majority view.  The EU has passed a resolution backing Fair Trade’s effect on tackling poverty and even large corporations such as Nestle and Starbucks have started selling their own Fair Trade items.

And even if Fair Trade accounts for only 2% of global sales, there is a great momentum and enthusiasm behind it.  There was a 47% increase in sales in 2007 (FLO) and sales continue to grow.  As sales grow so will the number of poor people it helps.  So why not Fair Trade?

Take Action

  • Read about Islam and the importance of trade justice here
  • Read the Fairtrade Foundation's Muslim Action Guide to Fair Trade here
  • Email the Minister of State for Environment, Food & Rural Affairs about Fairtrade cotton here!