Equitable trade

The equitable trade is a whole of distribution networks of consumables of country of the South which obeys under conditions considered as being able to improve, if possible durably, the situation of the producers who adhere to it.

History

The concept of equitable trade was present in the bible: Gospel according to Matthieu, " the parabola of the vine grower and the ouvriers" , verse 20.1-16 biblical quotation extracted the moral bible of the semeur.la of the history " the last will be the first and the first will be the derniers". Quite front even the installation of the equitable trade throughout the world, the vine grower of Matthieu practiced certain an equitable trade

Precursors

At the United States, in current of the years 1940, the religious movement protesting of the Mennonites sets up a trade of food products produced in the areas poor and distributed through its network. One will give later the name of Ten Thousands Villages (Ten thousand villages) to this organization. In 1949, Christian association SERRV, resulting from the Church of Brethren, deals with refugees in the disaster areas of Europe. To help the refugees, it imports cuckoos out of wooden of Germany to the Maryland…

Shops of the World

At the end of the Fifties, Leslie Kirkley, director of OXFAM, an humanitarian organization created in Great Britain during the Second War, are on mission with Hong-Kong for a supplementary programme to the refugees originating in continental China. She sees Chinese refugees making of the balls with pin. Kirkley has then the idea to fill a bag and to sell them of it in the shops of OXFAM. Starting from this date the artisanal importation and the product sales become a systematic practice of OXFAM, which creates in 1964 the first organization of alternative trade Alternative Trade Organizations (ATO).

The same year, UNCTAD lance the idea Trade, not Aid! (trade, not assistance), thus popularizing the concept of equitable trade.

With the Netherlands, charity association Steun Onderontwikkelde Streken (S.O.S) is created in 1959, but 1969 should be waited until to see to open the first " shop of the monde" with the Netherlands. It has a great success and many similar shops, which sell artisanal products, open with the Benelux. In Germany, the movement Aktion Dritte Welt Handel is founded in 1970 in the mobility of the Christian youth movements.

In Belgium, two associations Dutch-speaking Oxfam-Werldwinkels and French-speaking person Oxfam-Stores of the World are born around 1976. They result from very active Oxfam-Belgium in the years 1960 in the support for the movements of decolonization. The commercial beginnings were born from this will to support the liberation struggles. If the Belgian shops sell coffee of Tanzania, it is not especially to help the small producers, but to carry the socialist project of the president Julius Nyerere. In the same way for the coffee of the Nicaragua, intended to support the Sandinistas.

In 1994,15 national associations of 13 European countries gather within NEWS! (Network off European World Shops). On the whole, that represents:

  • more 3  000 local associations animated by close to 100  000 people (primarily voluntary).

  • 250 million euros of turnover carried out in 1999.
  • 400 profit producer groups in 50 countries of the " Sud" , that is to say approximately 800  000 families (5 million people).

Raw materials in the equitable trade

In the years 1980, ATOs must face a new situation: the innovation of a certain number of products of the shops of the world starts to blunt, the request saturates, and certain artisanal products appear obsolete and obsolete. This decline leads the militants of the equitable trade to reconsider their action. At that time, on the market of the agricultural raw materials, the prices crumble.

Food products like the, the coffee, quickly followed by the dry fruits, the cocoa, sugar, fruit juices, rice, spices and cashew nut then replace the craft industry in the shops of the world. Whereas in 1992, the relative shares of the craft industry and the foodstuffs are of 80% and 20% in the turnover of the shops, in 2002, the shares are almost reversed, the craft industry not accounting for more but 25.4%.

Rise of the labels

Up to that point, the equitable trade is confined with small spaces, that of the associative shops, in Europe and to a lesser extent in America. The touched public is thus restricted. The obligation to go in these shops to buy only one or two products is likely to reject even the most faithful sympathizers. The only means of increasing the customers and the turnover of the equitable trade is to offer the products in the supermarkets and hypermarkets of the large distribution. Still is necessary it to find a means of distributing the products by reassuring the consumer on their origin and their equitable character.

A solution is found in 1988 with the creation of the first label of equitable trade, Max Havelaar, on the initiative of two Netherlanders, Nico Roozen and Frans Van Der Hoff and of an association Dutchwoman also, Solidaridad. The principle of independent certification makes it possible products to be sold apart from the shops of the world, concerning consequently a public much vaster and making make a great jump with the turnover of the equitable trade. The Traçabilité of the products is assured. The consumer has a guarantee that with the other end of the chain, the producer finds his account there. Whereas the other initiatives are founded on the confidence which reigns within a specific die, distinct from the conventional market, the labels are founded on the objectivation and the contractualisation of the criteria.

In France, a certain number of criticisms however reproached Max Havelaar the appropriation of the label term, asserting that a label must have an approval of the public authorities. If one sticks to this criterion, no organization of the equitable trade can claim with the use of the term label.

The organizations of producers, they, are committed being been structuring to ensure a management transparent and democratically controlled by their members. The producers must also respect a whole of social and environmental criteria. All the links of the equitable die - organizations of producers of the South, importers, industrialists - are thus approved and controlled.

The label also applies to plantations with private capital. Social and environmental standards specific apply to it. In this case, the premium versed at a joint committee joining together is employed and direction. It must be used for the benefit of the workers or the local communities.

In 1994, a certain number of associations whose Solidar' World, the purchasing group of Artisans of the World create in an abstract way a Platform of Equitable trade (PFCE). In the years which follow, a certain number of similar associations are born in Europe and America, which propose other labels of equitable trade which are grouped finally under the banner of FLO (Fairtrade Labelling Organizations). In 2002, FLO launches the first certification of equitable trade. In 2007, under the name “Max Havelaar”, “Transfair” or “Fairtrade”, 20 members of the FLO use the common label of International Fairtrade Certification Mark in 21 country. It applies to a whole quantity of products like the coffee, the, rice, bananas, mangos, the cocoa, cotton, sugar, honey, fruit juices, cashew nuts, the fresh fruits, the quinoa, spices, of the wine, etc .

At the end of 2003, FLO separates its activity from certification by creating company FLO-CERT, thus seeking to follow the international standard of the certifiers ISO 65. FLO-CERT makes sure that the schedules of conditions of FLO are respected strictly, inter alia the fact that the producers perceive well the income of their products. This one includes/understands the guaranteed minimum price, which must cover the costs of a durable production, as well as the payment with the certified organizations of a development incentive that they will be able to use for structural investments: creation of school, health centres, purchases of grounds…

The international standards of FLO are the object of dialogs between all the recipients. They comprise economic, social and environmental criteria.

In 2007,586 organizations of producers and workers in 59 countries of the South, gathering more than one million producers are concerned with the label. The holders of license are importers and industrialists who subscribe to the international standards of the equitable trade by a contract which stipulates not only the payment of the guaranteed minimum price but of the direct relationships and durable with the organizations of producers and the acceptance of the control of FLO-CERT, the organization of certification of the label. They pay a royalty to finance certification. In accordance with the standard ISO 65, it is also the case of the organizations of producers. Funds of certification managed by FLO is planned for the organizations which do not have the means of advancing these expenses.

In addition to certification on the products, another organization, the IFAT ( International Federation for Alternative Trade ), proposes a certification on organizations, which makes it possible small structures to assert equitable trade. These small structures can thus offer their own guarantee to artisanal products, generally little standardized, produced in minor amounts by a multitude of small groups which cannot discharge costs of certification.

In 2006 with the Quebec, the sales increased on average 55  % each year, since 5 years. The market share is of 2 with 3  % in Quebec and of 1  % with the Canada.

Definition of the equitable trade (2001)

In 2001, four international structures of equitable trade (FLO, IFAT, NEWS, EFTA) propose a definition of the equitable trade:

The equitable trade is a commercial partnership founded on the dialog, the transparency and the respect, whose objective is to arrive to a greater equity in the world commerce. It contributes to sustainable development by offering better commercial conditions and by guaranteeing the rights of the producers and the marginalized workers, particularly in the South of planet.
The organizations of the equitable trade (supported by the consumers) are actively committed to support the producers, to sensitize the opinion and conducting campaign in favor of changes in the rules and practices of the international business conventionnel.

The IFAT (International Federation off Alternative Trade) retains the following criteria:

  • creation of opportunities for the producers economically underprivileged
  • transparency and responsibility
  • business practices
  • payment for an equitable price
  • limiting with the child work and prohibition of the forced labor
  • not discrimination, equality man-women, right of association
  • work conditions
  • continuing education
  • environmental protection

Inventory of fixtures of the equitable trade

The equitable trade represents a very marginal share of the international business. It is estimated that the equitable exchanges profit to 1,5 million producers in the world. It became the market which knows the fastest growth in the world. Europe only represents with it nearly 60% of the market of the world equitable trade and recorded in 2005 a turnover of 660 million euros, that is to say + 154% in five years carried out in 79.000 sales outlets, including 55.000 supermarkets. Switzerland and the United Kingdom are at the head with significant market shares: 47% of the market of bananas in Switzerland, 5,5% of the market of the Coffee in the United Kingdom. The specialized stores in equitable trade are 2.800 and gather 100.000 voluntary.

According to the survey Pilgrim-CCFD/TNS-Sofres published on April 20th, 2006, 42% of French state to have bought “equitable” products during the last twelve months. Growth of the sector for 2003/2004 to 103% (83% for large distribution and 115% for the other actors) and to 38% increase in the number of references of products. The total sales turnover, in France, food and nonfood, would rise to 230 million euros.

Producers of the Equitable trade

The equitable trade profits to 1.5 million producers in the world who can be coarsely classified as professional and qualified craftsmen, country organized (for example producing of cocoa in Bolivia or workmen in plantations of in India) and finally very poor craftsmen, marginalized socially, often socialized thanks to the support of ONG (for example, in Nepal, 800 craftsmen work for ONG ACP STATE).

Specific stake of the craft industry

Craftsmen of the World , speaking about its partners of the south, classifies the producers of craft industry among the most marginalized communities and most dependant on the die equitable trade. They are almost entirely dependant on the export sale. The artisanal activity their is for them the single source of revenue, making it possible certain families to escape the rural migration. The militants of Artisans of the World associate in their vision of their movement an concrete action in favor of the development of the communities of the poor countries, and the valorization of the culture and know-how of these communities. And they justify their mode of distribution in the shops by noting that the volume of production of the communities with which they work is lower than the threshold from which the large ones and average surfaces agree to work.

Women and equitable trade

Always according to Craftsmen of the World , nearly 80% of the producers partners of the equitable trade would be women. These last, although carrying on an artisanal activity, are however distinguished from the professional craftsmen. The Chilean ones of the Foundation Solidarity could not manufacture will arpilleras in 1973, the artisanes of Ramahaleo to Madagascar could not cross nor to make. For some of them, mainly the woman alones with children, the equitable trade is their only possible income apart from the begging.

Productions of the equitable trade

In the beginning, the shops of equitable trade touched primarily with the craft industry and the textile. Then the range of product diversified little by little. In addition to the textiles and the craft industry, at the beginning of the 21e century, many other products, generally of the food, are the subject today of an equitable trade. The coffee became the equitable product more sold. Clothing, in particular of cotton is the subject of new forms of exchange. The installation of a " garantie" equitable for cotton, by Max Havelaar, in April 2005, contributed to the installation of products of mode resulting from the equitable trade. Other initiatives, independent of the mark, also were born in the fashion. Among the pioneers of the equitable mode Ideo clothing or the tennis shoes Veja is. Social engagements of these new marks, often associated with strong environmental concerns relate to the production of the raw materials, their transformation (spinning, weaving) and their assembly.

Ranges of equitable cosmetics also were born. Often biological and associated with a step of respect of the environment, some of them based their principle on the valorization of traditional know-how related on the plants and the ancestral pharmacopeia. It is the case of Forest People or Guayapi which offer products directly resulting from these traditional receipts (Amazonia, Sri Lanka, Madagascar, Morocco, Burkina Faso…). The objectives asserted by these associations are always to develop and perennialize traditional know-how, to maintain open family workshops while supporting the biodiversitéet and while fighting against deforestation.

Criticisms and Debate

Point of view of the defenders of the equitable trade

The equitable trade consists of a total commercial relation creating the conditions of a true development for most underprivileged. Beyond of a question of price, the step seeks to create the conditions of a autonomisation of the organizations of producers. It is the organization of the co-operative type which must be the instrument about it. These organizations must be managed well and controlled by their base to make the required investments with the most direct possible export. The equitable trade seeks to create these conditions so that, even on the conventional market, the producers among most vulnerable of the market reinforce their position on the markets of export.

According to its defenders, the product of the equitable trade should not necessarily be more expensive than a conventional product. Only the distribution of the costs and the benefit changes. The overcost paid to the producers would be compensated by the lower costs paid with the intermediaries. Actually, one generally notes a price a little higher, depending mainly on distributed volumes. One asks the consumer to make an ethical choice while agreeing to pay this overcost. The consumer is thus invited to assume the responsibility for a better balance of the " reports/ratios; North-Sud" and, in certain cases, of an action in favor of the environment, as it can be the case for the Organic farming.

This alternative form of trade profits thus with more than 800.000 producers and craftsmen, who make live more than 5 million people, in more than 50 countries throughout the world.

The criticism of the altermondialists

According to certain currents altermondialists, the equitable trade would contribute to mask what they regard as a problem: the reduction on behalf of the food Agriculture with the profit of the cultures of export, which would make dependant on the purchases of the North of the populations which could develop to them Food sovereignty independently of the spending patterns of the countries known as “rich”. From there the importance to consume local products. Moreover, even in the case of the equitable trade, these currents estimate that the share which is allocated to the producer remains tiny in the decomposition of the price of the finished product.

The equitable trade is also criticized from the point of view of the consumers, who become lighter the conscience, by consuming these products.

In its book the slides of the equitable trade, Christian Jacquiau doubt of the bona fide of certain labels of equitable trade by asserting reality of the prices, well in-on this side discounted equivalence, letting suppose that these new intermediaries take as much as the others which they décrient and which they seek to compete with. He also declares that the “equitable trade is only one sales point like another” and that he constitutes an additional commercial “niche” which makes it possible to differentiate a product from another with the eyes of the ultimate consumer. Always according to Christian Jacquiau, Max Havelaar is the example even of this type of equitable trade “marketing”, contrary to other branches of the equitable trade like Minga and Ingalañ, of which it presents a pleasant image.

This presentation of the political debate which crosses the movement of the equitable trade like “ a Homeric fight between the Good (Minga) and the Evil (Max Havelaar and its allied the transnational ones) ” itself was criticized and presented like caricatural within the movement altermondialist.

Equitable trade and large distribution

In France, part of the actors of the equitable trade chose to market the products through large distribution. It is the case of products labellized by association Max Havelaar in 1999, and in particular of the range Ethiquable and Alter Eco. The first store chains which put on sale products resulting from the equitable trade are: Monoprix in 2002 and Cora in 2003. The other signs follow to the wire of their degree of engagement and the request of the “consumers” Atac, Auchan, Carrefour, Champion, Géant, Hyper/Super U, Intermarché, Leclerc, Supermarché Match.

This choice was discussed many within the movement of the equitable trade and always causes debates. The federation Craftsmen of the World, the association Craft industry SALT, which provide their stores partly, and association Minga and Breizh ha Reizh, the Breton federation are principal holding of a marketing except large distribution.

The movement of the equitable trade (institutional aspect)

The organizations of equitable trade are gathered in national federations and international, which have functions of coordination and promotion of the movement.

With the international level exist various federations; their diversity is with the image of the diversity of the actors of the equitable trade:

  • the IFAT ( International Federation for Alternative Trade - or International Fair Trade Association ), which exists since 1989, is general practitioner. It launched in 2004 the certification FTO ( Fair Trade Organization ), which has as a characteristic essential to certify equitable trade not products but organizations. In 2007, the IFAT counts nine French members, of which the PFCE, Alter Eco, the federation Artisans of the World, and Solidar' World.
  • the EFTA ( European Fair Trade Association ) gathers since 1990 eleven importers of European products of the equitable trade. The company Solidar' World is the French member of the EFTA.
  • network NEWS ( Network off European Worldshops ) gathers since 1994 the various domestic networks of specialized stores. The federation Artisans of the World was the French member of NEWS, but it withdrew from it at the end of 2006.
  • association FLO ( Fairtrade Labelling Organizations ) gathers since 1997 the organizations of certification of the equitable trade. Certification FLO relates on the products and not to the companies. Association Max Havelaar France is the French member of FLO.

These four federations are gathered in 1998 in a named abstract network FINE, for: F airtrade Labelling Organizations, I nternational Alternative Federation for Trade, NR etwork off European Worldshops and E uropean Fair Trade Association.

In France, the French Plate-forme for the equitable trade gathers since 1997 the majority of the large organizations of equitable trade. But in 1999 also constituted Minga a regrouping of several tens of structures working for the development of a requirement of economic and social equity throughout the dies.

Farid Baddache, Sustainable development with the daily newspaper , Editions of Organization, 2004. ISBN. 3 pages on the trade équitable on standby has to prove seems to be general information; nothing encyclopedic on EC -->

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