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Is Fairtrade fair?

29/02/2008


Fairtrade display cartoon  © not advertIn today's paper Christopher Fielden, the Church Times wine correspondent tastes a new Fairtrade communion wine. The wine has its own website here, with an order form and directions to the HQ, somewhere south of Stoke on Trent. You can vote in this week's online poll on the subject, where the question posed is: "Does the taste and quality of communion wine matter to you?"

Fairtrade Fortnight is now well underway. There are lots of promotional events and adverts and opportunities to buy Fairtrade bananas at a 20% reduction abound.

But not everyone is convinced that Fairtrade is such a good idea. See for instance this report by the Adam Smith Institute (covered by the Guardian and others) entitled 'Unfair Trade' which claims:

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*"It only offers a very small number of farmers a higher fixed price for their goods. Given the way markets work, these higher prices come at the expense of many other farmers, who – unable to qualify for Fairtrade certification – are left even worse off.*
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The Fairtrade Foundation were quick to point out a number of 'incorrect claims' in the report. meanwhile in the blogging world posters on the Sanctus 1 blog have made some useful responses.

Giles Fraser, in today's paper (Is Fairtrade the same as fair?) argues that the church should engage with some of the arguments put foward by the Adam Smith Institute and that many churchgoers are missing the big picture.

An article in yesterday's Independent really put things into perspective for me. Entitled 'The story of the blues: Tracking the journey of the £9 pair of jeans', the writer (we'll call him Fred) travels to Bangladesh to find out where a £9 pair of jeans really come from. The findings are quite disturbing. It sounds as if the Western companies are making an effort to trade ethically, but not always succeeding:

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*The buyers – the brands' representatives in Bangladesh – make regular inspections of the factory, the women said. But "they always inform the owners first. Before they come, the managers come through the factory with megaphones. We are told to prepare the factory, to clean up. And they instruct us what to say about working hours and holidays and conditions. We have to lie about holidays especially."*
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Fairtrade may not be perfect and it may not be the whole answer, but it seems to me that:

  1. Anything that seeks to guarantee minimum standards for those who produce the food and goods we consume has got to be a good thing, and...
  2. We need (when there's no queue at the checkout) to demand to pay more than £9 for a pair of jeans.

As we've blogged over at the Celsias blog, there are some serious questions to be asked about fairtrade.

On the other hand, suggesting that free trade is the best solution is nonsense and fails to recognise that it was free trade policies which got us into the mess in the first place.

There is no evidence that free trade leads to anything other than disaster for the poorest people.

joe | 03/03/2008 19:42:16

£9 jeans? Someone is being ripped off! I get mine for £3 from Tesco. That leaves me £6, or £50 relative to some of the big name brands, to give directly to God's work, instead of perhaps an extra 50p (guessing here) going to the poor factory workers, with the rest of the difference going into middlepersons' profits.

Peter Kirk | 03/03/2008 22:20:52

Joe - Interesting post on your blog. I'm still not sure though how weaning myself off my daily coffee (and two cups of decaf) is going to help the situation.

Peter - if you're only paying £3 then surely you *know* the person making the jeans isn't being paid fairly. Sure, you've £6 to put to good causes, but I wouldn't have thought that one right excuses a wrong.

Dave | 03/03/2008 22:51:51

Dave, if I pay £53 for jeans then very likely the person making them is still not being paid fairly, by the standards you are using. Or is anyone selling Fairtrade certified jeans? Anyway, that unfairly paid person is probably glad of some job rather than being left to starve. That is not a justification for paying low wages, but it is an indication that the issues are far more complex than the Fairtrade people seem to suggest.

Peter Kirk | 03/03/2008 23:54:32

Dave - the problem is that most of our lives are based on consumption of products which originate outwith our country. Breaking the chain and at the same time enabling farmers in developing countries to grow other more sustainable crops seems to me to be highly desirable.

Peter - are you not concerned that your clothing purchasing is keeping people in slavery? Does God even want the dirty money you've 'saved' from that transaction?

joe | 04/03/2008 08:55:43

Peter Kirk, I don't understand your Maths. Surely 'doing God's work' is to act justly not to act injustly so you have money left over for your pet charity. How is keeping people in poverty and then, perhaps, giving money to a charity to give poor people a bit more food doing God's work?

People need respect, dignity and hope, not just food and shelter.

Karin | 04/03/2008 13:42:53

Actually you can get Fairtrade certified jeans these days, I've seen them in a few shops around the place! Although, you do need to check out whether it's just the original cotton growers that are getting ft terms and conditions or the manufacturing workers too.

Rachel | 04/03/2008 15:15:22

Karen, my maths are simple, although speculative and over-simplified. £3 jeans = 50p to the factory worker, £2 to the middlepersons, 50p to Tesco. £53 jeans = 50p to the factory worker, £2.50 to the middlepersons, £25 to the owner of the label, and £25 to the posh boutique I buy them in. In what way am I acting unjustly to buy the cheaper product? It might be a different matter if there was proof that more money from the latter purchase went to the factory workers.

Peter Kirk | 04/03/2008 21:10:08

I made the assumption you know that Fairtrade jeans exist and therefore have made a choice to buy unfairly traded goods.

The range of fairly traded clothes is limited and I do buy unfairly traded clothes at times, but I don't pretend that there is any virtue in doing so.

Bishopston trading company sell jeans made from 100% organic Fairtrade certified cotton denim, with the aim of giving the manufacturer a fair price.

Karin | 05/03/2008 11:17:47

The other choice we can all make is whether to buy clothes made in countries with a poor reputation for workers rights or from somewhere with a better record in that area. This can certainly be reflected in the price, so the person who made the £10.00 pair of jeans may get paid enough for a reasonable living while the person who made the £3 pair struggles to feed his/her family. It depends on the company you buy them from, too, whether they are interested in treating their suppliers fairly etc

Karin | 05/03/2008 11:23:10

Karin (sorry for mis-spelling your name), I didn't know that Fairtrade jeans existed, as I wrote in a previous comment. Thanks for the tip. But Bishopston's men's jeans are £38. How much of that £38 goes to the factory worker? That is a real question.

Also shouldn't we avoid these jeans made in India because that is one of the "countries with a poor reputation for workers rights", as is clear from the Bhopal story? My point is simply that the issues here are extremely complicated.

Peter Kirk | 05/03/2008 16:28:28

Peter, read the story of Bishopston trading. As their slogan suggests they were set up to import directly from rural India with the sole aim of fair trading. They established a workers co-operative in 1985 to create employment in the southern Indian village of
K.V. Kuppam.

Karin | 05/03/2008 17:10:28

I have written more about this subject in this post.

Peter Kirk | 05/03/2008 17:24:09

Peter, might I suggest you ask Bishopston. It is a great deal more than from your £3 jeans, which must be from one of the crummiest nastiest factories in the world. And believe me, I've been to some nasty factories.

joe | 05/03/2008 21:34:25




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