Green Calgary

Isn’t Free Trade Already Fair?

Reader Question

I am seeing a lot more items in the grocery store labeled “fair trade” and this, to be quite frank, confuses me. Isn’t the point of free trade to make everything fair? Politicians are always suggesting we need more free trade agreements to deal with poverty, so the whole fair trade argument seems counterintuitive. Can you provide some clarity on this?

Many thanks,

Karen

Ashley's Answer

Dear Karen

Hearing people ask for “free trade” coffee at the local coffee shop always seems to make me cringe and I wonder if they are trying to make point or if they simply made a slip of the tongue. The latter seems more likely but I am certain there are those who believe the free market, if left unhindered, is the best way to lift billions out of poverty. Free market believers contend that by allowing the rich and privileged to accumulate as much wealth as humanly possible that, in some miraculous series of events, the wealth of the rich will “trickle down” and raise the standard of living for everyone in the world. The trickle down theory has, for the most part, failed and as John Ralston Saul writes in The Collapse of Globalism, “the free trade approach [has] produced growth without equality.” Fairtrade labeling seeks to reverse this.

According to the Fairtrade Labeling Organization International (FLO), fairtrade is “an alternative approach to conventional trade and is based on a partnership between producers and consumers. It offers “producers a better deal and improved terms of trade”, while giving citizens “a powerful way to reduce poverty through their every day shopping.” These points are well taken but I truly believe that support for fair trade does significantly more than simply give a “better deal.”

Fair trade does for “third-world” farmers what free trade does not. It lifts despondent farmers, many who are slaves or effective slaves, out of what is otherwise an inescapable trap. It gives farmers a basic level of dignity, while making self determination a possibility. Community ties are strengthened, lives are enhanced, and hope is realized.

In supporting fairer trade we, as citizens, raise the standard of living of farmers a world away by making small changes in the way we shop. We not only support what is, at a very basic level, right, but we make it clear to governments and companies that we are not okay with simply allowing the “market” to sort things out, especially when it means driving people into abject poverty. What might seem like a straightforward purchase is in fact a statement insofar as we support basic human rights and wholeheartedly believe that everyone, rich or poor, deserves a fair chance at living a fulfilling and meaningful life.

Now while most people will associate coffee and chocolate with the Fair Trade concept, a growing number of products are now available, including: tea, sugar, cocoa, rice, quinoa, cotton, herbs and spices, flowers, wine, nuts and oils, fresh fruits (particularly bananas) and even soccer balls. Transfair Canada is the local certification body and the website is a good resource for information about the fair trade mission, as well as where to obtain fair trade products across the country. A growing number of retailers are featuring Fair Trade products, including natural food stores around Calgary, while Ten Thousand Villages - a nonprofit Fair Trade Organization – stocks a full range of food stuffs and an incredible selection of hand crafted artisans, all of which are fairly traded.

Finally, I think it is worth mentioning the growing number of small businesses working to support “Direct Fair Trade” arrangements for products like coffee. British Columbia-based Level Ground Trading uses this approach and they assert farmers are paid 53% more than conventional importers of coffee and 26% more than the Transfair price, giving farmers an even greater chance at creating a bright and sustainable future. In either case, what unites TransFair with those seeking to raise the bar even further is the conviction that farmers and their families deserve a fair chance at an honest living. For a small price premium we are able stop the injustice created by the “market” and make real and lasting change for farmers in developing countries. This, I think it is safe to say, is a remarkable opportunity and one that is worth every penny.

Justly,

Ashley

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