The Domestic Fair Trade System

The international Fair Trade movement, a system which has been established to protect workers, ensure a fair price has been paid and environmental protection standards have been met, has seen exponential growth in recent years; production, refinement and retail totals of Fair Trade products around the globe has continued to see healthy growth, as the market evolves to want more “ethically sourced” goods. At the same time a strong “local” food movement has begun to take root, especially as domestic economies have come under increasing strain, and the sourcing of internationally sourced commodities has been increasingly questioned over environmental and social concerns. What has become evident however is that neither side, whether international or domestic, isn’t without impediments. The challenges faced by farmers, producers, farm hands and rural localities are very similar throughout the world. As such, the separation between the needs of an international Fair Trade system and those of a domestic Fair Trade system isn’t as big as one might think.

On the international front, Fair Trade and its systems and standards are complex, and well established, with the Fair Trade Labelling Organization (FLO) and the Fairtrade Canada system, the World Fair Trade Organization (WFTO), the Fair for life program through IMO and the Fair Trade Federation (FTF) firmly in place. In comparison, the movement to address labour and trade conditions domestically is in its infancy. This is especially apparent when comparing it to the organic certification system, which has had decades of development, and now encompasses a sophisticated system of standards, certifiers and consumer advocacy organizations, as well as legal protection of the term. Increasingly however Organizations have begun to bridge the gap and have begun to offer certification up and above organic, which also encompass labour rights and social standards, or in other words a Fair Trade standard on the domestic front.

The following material will therefore attempt to outline how the entire system works; specifically, which organizations are setting the standards, confirmation of those standards, advocacy for those standards and how and where Fair Trade plays a role. What’s realized is that standard’s and ideals on both the international side and the domestic side are very much the same; as such perhaps one food movement could actually work to unify and build a strong movement which oversees the entire supply chain, whether products are locally or internationally sourced. The hope will therefore be to identify the similarities and the linkages between what is currently two separate systems, and advocate for the building of one strong and unified social and environmental justice program which encompasses players on the local level, the domestic organic level and the international level.

Domestic Fair Trade – Principles and values

The Domestic fair Trade Association (DFTA) recognizes that “in recent years, the Fair Trade movement has united farmers, workers, traders and consumers with a message of fairness, equity and environmental stewardship in trade in marginalized countries. Representing a convergence of co-operative, solidarity, and social justice movements, Fair Trade emphasizes ownership, empowerment and development for small-scale farmers, artisans and workers in the “Global South””

The DFTA however recognizes that “increasingly, we can see that the challenges faced by rural communities are very similar around the world. As the movement for “Domestic Fair Trade” has gained momentum, our organizations have come together to contribute to a movement for fairness, equity and sustainability that supports family-scale farming, farmer-led initiatives such as farmer co-operatives, just conditions for farm workers, and the strengthening of the organic agriculture movement”.

The challenges faced by small producers are now felt globally, therefore similar standards need to be put in place to guarantee transparency, safe working conditions, fair pay and environmental protection whether it be on the domestic or international front.

Domestic Fair Trade explained:

“Domestic Fair Trade for food products is a system of trade that aims to create fair and just opportunities for farmers, eaters (consumers) and retailers…it ensures farmers and fishers a dignified  livelihood, provides people with safe, healthy  food, requires a livable income for the whole population, protects the natural environment, encourages communities to cooperate  &  support local services” (The Cooper Institute)

The Fair Food project believes that “through the stories and voices of farm workers, growers, businesses and fair food advocates, viewers learn about the harsh realities of farm worker conditions and, more importantly, the promise of improved farm labour practices in American agriculture; the growing movement for “fair food” is tapping into rising consumer demand for food produced in accordance with their values”.

The DFTA outlines the movement’s core values as such:

• Contributions of all workers and farmers are valued
• Workers’ rights, human rights, and human dignity are affirmed and promoted.
• Fair Trade is synonymous with fair wages, fair prices and fair practices.
• Risks and rewards are equitable and shared, and this information is open and available to all stakeholders.
• Information will be readily available on where, how, and by whom every product is grown processed and distributed
• All practices from source to table are environmentally sustainable as well as economically just.
• Direct trade and long-term relationships dominate the food economy.
• Strong local communities are the foundation of society.
• Power is shared and development is grassroots driven and cooperative.
• Fairness is found in all relations from source to table.
• What a community eats is based squarely in the context of community building and social justice.
• Cultural rights are recognized and honoured.
• Building community around the food system

The hope for the movement, as outlined by the Cooper Institute, states that “as people become more engaged in the food system and more concerned about where their food comes from, relationships between farmers, fishers and eaters (consumers) become more clear and more direct, and greater trust is involved”

Furthermore, the movement seeks capacity building, democratic and participatory ownership, the rights of labour, equality and opportunity for all, direct trading relationships, fair and stable pricing, long term relationships, sustainable agriculture and the use of appropriate technology, while working towards greater transparency, accountability, education and advocacy. (The DFTA)

The Fair world project, which was launched by the Organic Consumers Association, works to promote these ideals by working “to promote organic and fair trade practices and transparent third-party certification of producers, manufacturers and products, both here and abroad. Through consumer education and advocacy, FWP supports dedicated fair trade producers and brands, and insists on integrity in use of the term “Fair Trade” in certification, labeling and marketing”

• The project has attempted to educate consumers, retailers, manufacturers and marketers regarding:
• The standards, criteria and possible fair-washing behind Fair Trade claims on products they produce, sell and/or consume.
• Fair Trade certifiers and membership organizations
• The importance of Fair Trade not only in the developing world but also in the developed world.
• The project has attempted to:
• Safeguard the integrity of the term “Fair Trade” through assessing and grading fair trade certifications in the marketplace and aggressively calling out fair-washing
• Encourage honesty and transparency within the Fair Trade movement and to help foster open relationships with Fair Trade organizations, retailers, manufacturers and wholesalers

For IMO: For Life and Fair for Life: “The aim of the Fair for Life Social & Fair Trade Programme is to ensure fair and positive relations between producers and their cooperatives or contracting companies, between workers and their employer, between seller and buyers on the world market while at the same time ensuring performance of standards”

These ideals, principles and goals are reached through creating relationships, building partnerships and creating trust in the market place; direct relationships help this, while very often certification ensures this. These domestic movements rely upon much the same mechanisms the international Fair Trade employs, most centrally through the cooperative model.

The Coop model defined:

As outline by Wikipedia: A cooperative or co-op, is a business organization owned and operated by a group of individuals for their mutual benefit; Cooperatives are defined by the associations of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through jointly owned and democratically controlled enterprises. A cooperative may also be defined as a business owned and controlled equally by the people who use its services or by the people who work there.

In Canada, the Farmer Direct Co-operative is a leading cooperative in the local and organic movement. They have as of recently created a logo, called “Fair deal” which encapsulates “organic” certification as well as “Fair Trade” certification. They hold seven key principles which outline the commitments of the cooperative system, they are:

• Voluntary and open membership – Must be willing to accept membership responsibilities
• Democratic member control – They are a democratic organization controlled by their members – 1 member, 1 vote
• Members’ economic participation - Members are required to make a one off investment in the Co-op.
• Autonomy and independence – The co-op is an autonomous organization controlled by its members.
• Education, training and information – The co-op works to provide education and training for its members
• Cooperation among cooperatives – Co-ops believe in cooperation and hold those values with other coops
• Concern for community – Co-ops work to ensure the sustainable development of the community.