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Of the DM 3.500 which a consumer in Germany pays for a nice hand-woven rug from India, the producers - many of them children - receive only DM 300.
A coffee farmer in Rwanda receives less than one US dollar for the kilo of coffee beans that took him a year to produce; by the time his kilo reaches Europe, it has changed ownership about ten times and its price has quadrupled, the difference ending up in the pockets of speculators.
A clever gringo businessman buys 50-cent T-shirts in Thailand and employs indigenous women in remote villages in Guatemala to embroider them. Per T-shirt - 25 hours of work - the gringo pays them 2½ dollars. The women don't complain: other gringos only pay half as much. In the U.S., the embroidered T-shirts sell for 20 dollars and more...
Fighting such gross injustices is the essence of fair trade.
... to support efforts of Third World producers who by means of co- operation, production and trade strive for a better standard of living and fairness in the distribution of income and influence;
... to take initiatives and participate in activities aimed at establishing fair production and trade structures in the South and on the global market.
Fair Trade Organizations are essentially trading organizations that promote development towards self-reliance and empowerment through establishing fair trade relations. They buy coffee, tea, other commodities, textiles and handicrafts directly from organized producers in Africa, Asia and Latin America.
In the South, a fair trade organisation prefers dealing with democratically organized producers who are interested in the development of their region or production sector, in the empowerment of women, in free and democratic political structures, and in the preservation and regeneration of their culture and ecosystem. A fair trade organisation pays the producers a price for their product that enables them and their families to make an adequate living. A fair trade organisation also assists producers in product development, education and training, improving their organisation and marketing, and sharing their skills and experience with others.
In Europe, fair trade organizations sell the products through over 3.000 so-called Third World Shops, local groups, exhibitions, campaigns, wholesale and mailorder catalogues. They make it a point to inform buyers about the producers and their products by means of pamphlets and booklets accompanying the products, slide presentations, exhibitions, magazines, informative meetings and training courses. And they cooperate with other Third World organisations, action groups, churches, and others trying to create a fair chance and a fair share of the earth's resources for people in the South.
Since the first fair trade organization was established in 1959, over 60 fair trade organizations have started operations all over the world.
EFTA is an association of 11 fair trade organizations in 9 European countries. EFTA was established in January 1990 after a 10 year's period of informal cooperation.
EFTA seeks to stimulate practical cooperation between its members, to develop common policies and joint support to producers, and in Europe to strive for the adoption of fair trade principles in commercial trading.
The managers of its member organizations form EFTA's Board of Directors. Furthermore, continent committees and product committees (formed by specialists of the EFTA organizations) regularly meet to coordinate cooperation and joint activities.
Among EFTA's noteworthy achievements:
- the completion of a two-year investigation into the effects of changing international conditions of trade ('markets in motion') on producers in Africa, Asia and Latin America;
- the start of an elaborate programme aimed at improving and controlling the quality of the imported products;
- the development of 'partner attendance': the intensive cooperation between a producer and an EFTA member in view of improving communications, transport logistics, product development, and ultimately, of increasing trade;
- the specialization of EFTA members in expertise, trade and the development of specific food products;
- the launching of a European trade mark for fair products: 'TransFair';
- the strengthening of advocacy work to increase public and political acceptance of fair trade in Europe.
Producers in Africa, Asia and Latin America exporting to Europe may already have noticed that the conditions of trade with European countries are going through a period of major changes.
At the root of these changes lie three important developments:
The major expectation of the above mentioned developments is that, as a whole, the process of removing the borders between countries and thus creating one big European market will not lead to higher taxes for imports from developing countries. The new 'EU-wide' import tariffs are generally not higher or stricter than the 'national' tariffs they are replacing. Still, as the existing tariffs of France, Germany and all the other EU countries were already quite effective in making it difficult for products from Africa, Asia and Latin America to compete fairly with European products, EFTA feels that it would be desirable for the EU to lower the new EU tariffs especially for products from the South.
At the same time, the EU countries are replacing the different product norms, standards, and other regulations of the individual countries by one set of regulations that will apply to the entire EU market. This harmonization of standards and quality requirements threatens to lead to stronger qualitative import restrictions because there is a tendency within the EU to set the new norms at high levels. In fact, these new EC norms threaten to be much more protectionist against imports from the South than (high) tariffs and quantitative import restrictions like quota. It will be increasingly important for producers in developing countries to ensure that their products meet these European standards.
EFTA closely follows the elaboration of uniform EU norms and standards. Particular attention has been paid to the "CE" and other certifying marks the EU is instituting. In fact, EC norms and certification have been a standard topic on agendas of EFTA meetings.
The following projects were initiated:
EFTA and its members believe they have a role to play in helping their partners in Africa, Asia and Latin America in adapting their products and marketing to the worldwide 'markets in motion', particularly in improving their chances on European markets. Therefore, one of EFTA's emphases is on the quality of the imported products.
In general, Europeans are adopting a more critical attitude towards what they consume. Even though they may be a bit more expensive, products that do not threaten people's health or the environment, that are made of natural materials and are durable are bought more and more frequently. Constantly observing market trends and analyzing their sales figures keeps EFTA members well-informed about these changing consumer demands. EFTA feels itself responsible for transmitting this knowledge to producers.
Various EFTA members have separate departments or even separate organisations to support producers in this area, to employ specialists for product development and trainings and to obtain funding from outside sources for this producer support. An important joint initiative in this area is a one-week Seminar for African producers of garments, jewellery and musical instruments in February 1995.
To be able to cope with the increasing competition on the European market, EFTA members work on job sharing and task division. In the area of commodities there is a tendency of specialisation according to product groups. The adopted model: an EFTA member develops specific expertise for certain products which they then make available to the other EFTA members.
Some examples:
The growing interest of consumers and commercial traders and retailers in fair trade led EFTA to develop a Fair Trade Mark for fairly traded products from the South, called the TransFair" mark that is valid for the entire world. In June 1992, EFTA co-founded the organization that is to control the trademark: 'TransFair International'.
TransFair International is an independent non-profit organisation. It owns the TransFair mark. This mark will be given to products coming from producer groups in the South that are economically disadvantaged by the present world trade conditions and that try to improve their situation by joining forces.
The message of the mark is: .................. wages ... An international independent committee decides which products and producers fit this definition. Coffee was the first product to be sold with the TransFair mark, followed by tea, honey, cocoa/chocolate.
TransFair International and EFTA closely cooperate with other existing trademark initiatives in Europe, like Max Havelaar in the Netherlands, Belgium, France and Switzerland and the FairTrade Foundation in the U.K. The aim of this cooperation is to come to a joint system of criteria, registering and monitoring.
EFTA considers fair trade as an important contribution to sustainable development in the South. Fair trade begins with a fair price to the producer, advance payments where necessary and a long-lasting trustworthy relationship between producer and importer. However, fair production and fair trade is not enough. For a fairer division of income and labour between North and South it is necessary that the international trading structures change and give better chances to the South to export their products to the North. Influencing international trade politics in this direction is a political task, which is becoming increasingly important for EFTA members. And this is an excellent area for EFTA cooperation, where joint forces are the best way to achieve the objective.
As in Europe international trade politics are an affair of the European Union, EFTA's lobbying for equitable trade logically concentrates on the EU. One of the highlights in this respect are the annual Fair Trade Days in the European Parliament (in October 1992 in Strasbourg, in October 1993 and November 1994 in Brussels). The day's major aim is to make the concept of fair trade and TransFair known to the members of the Development Committee of the European Parliament, and to lay a basis for further contacts. One of the major successes is the adoption by the European Parliament in January 1994 of a report and a resolution on promoting fairness and solidarity in North-South trade, which was prepared by Mr. Alexander Langer (member of the European Parliament and the EP Development Committee). The report is an acknowledgement of the "not aid but (fair) trade" principle and the achievements of the fair trade movement. It recommends measures to strengthen and support the movement and to adopt the fair trade principles in policies of the Community and its member States.
For several years, EFTA (particularly Magasins du Monde and Oxfam Wereldwinkels) has worked at a political level for the establishment of more equitable South-North trade relations and for political support of the development of "Fair Trade". In 1993, at the time that Belgium was president of the European Community, EFTA proposed to the European Commission (EC) to adopt a number of concrete measures in favour of fairer South-North trade relations. After a round of extensive consultations, the EC informed the Belgium Ministry of Development Cooperation and its state Secretary Mr. Derycke that it is willing to support activities aiming to achieve a larger market-share of "Fair Trade" products on European consumer markets. To discuss these issues, the Commission invited EFTA, among others, to a Round Table in October 1994. About 30 people participated, among which were representatives of the Belgian government, Director H. Smida and Director F. Granell of the European Commission, Mr. Ryelandt and Mr. Granda of DG VIII as well as representatives of the Belgian coffee trade: Mr. Rombouts of the Roaster Union in Belgium and representatives of the Delhaize and Noprix supermarket chains. It was remarkable to see that the two directors of the European Commission showed great interest and goodwill regarding "fair trade". They stated explicit support to the principles and objectives and see a clear pioneering role for the fair trade movement alongside the initiatives in commercial trade.
Early 1993, the European Union supported the fair trade campaigning by co-financing an EFTA campaign aiming at increasing consumer-acceptance of fair trade products and at lobbying politicians to abolish the system of tariff escalations for coffee (the name of the campaign was: "Added value for commodities in the South: a necessary condition for sustainable development").
In 1994 EFTA started a campaign to promote the popularity of fair(er) trade. It is co-funded by the EU. The campaign encompasses a range of activities on a European level that target politicians and policymakers, organized in such a way that national fair trade organizations can use and integrate these activities in national fair trade campaigns. Concretely, the campaign includes a series of studies, a Fair Trade Day and - Hearing in the European Parliament, the edition in six languages of a first Fair Trade Yearbook, regular newsletters and various activities in support of national fair trade campaigns.
The EFTA Workplan reflects a stronger commitment than ever of the Association's member organizations to the EFTA cause. They all have made EFTA a major priority for the coming years. This commitment guarantees a growing EFTA engagement in promoting a fair chance for small-scale producers in Africa, Asia and Latin America on the world's markets.
Last but not least some figures: EFTA members import from over 550 producer groups in 44 countries. Total turnover of all EFTA members together comes close to 100 million ECU. EFTA members employ a total of approximately 560 people and receives support from tens of thousands of volunteers.
| MEMBERS OF THE EUROPEAN FAIR TRADE ASSOCIATION | |
|---|---|
| Austria |
EZA Dritte Welt, Plainbachstr. 8, 5101 Bergheim |
| Belgium |
Magasins du Monde - Oxfam, 7a, Rue E. Michiels, 1180 Bruxelles |
| Oxfam Wereldwinkels, Nieuwland 35-37, 9000 Gent phone: (+32) 92 230161, fax: (+32) 92 250478 |
|
| France |
Solidar'Monde, 86, rue Berthie Albrecht, 94400 Vitrys/Seine |
| Germany |
gepa, Talstrasse 20, 58332 Schwelm |
| Italy |
C.T.M., Via Macello 18, 39100 Bolzano |
| Netherlands |
Fair Trade Organisatie, P.O. Box 115, 4100 AC Culemborg |
| Norway |
Alternativ Handel, P.O. Box 2802, Toyen, 0608 Oslo 6 |
| Switzerland |
O.S.3, Byfangstr. 19, Postfach 69, CH-2552 Orpund |
| United Kingdom |
Oxfam Trading, Murdock Rd, Bicester, Oxon OX6 7RF |
|
Traidcraft Plc, Kingsway, Gateshead, Tyne & Wear, NE11ONE |
|
| Secretariat |
EFTA, Witmakersstraat 10, 6211 JB Maastricht, Netherlands |
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