Briefing on Fair Trade & Indigenous People
organised by MANDAT International

This discussion focused on the limits and perspectives of fair trade. Mr. Faye , from UNCTAD, started by stating that fair trade concerns agriculture and handicraft products. It is the principal source of revenue for several farmers and artisans of developing countries. For about 80 countries that do not belong to the OCDE, the value of the exportation of basic products goes over 50%. Moreover, we note that the price of the raw material is decreasing for the last 20 years. This never-ending decrease generates a decline of revenues and also of investments related to the fundamental needs which endanger the well-being of millions of people.

Mr. Faye believes it is urgent to find new ways to make fair trade successful. Fair trade is one way to overcome injustices by redistributing the benefits in a more just and fair manner. Priority must also be placed on how to penetrate the classical markets through various distribution networks. Furthermore, its expansion should be considered in a relative way even if its development keeps growing.
Mr. Faye discussed the sustainable perspectives of the fair trade. He believes that fair trade is a relief for millions of small producers, even if it has a significant limit: Fair trade has no official structure. He proposed to create a platform gathering the different actors of fair commerce (e.g. governments, multinationals, indigenous people, NGOs,…) which would allow to balance the prices and to get out of the informal circuits.

Mr. Hutin, from the Magasin du Monde et de Commerce Equitable, spoke about his organization. Its goal is the sensitization of European consumers to behave as fair and educated consumers. Transparency is the core issue at all the levels of the production and distribution circuit. Their products were labelled by Max Havelaar, who is in charge of making sure that fair trade criteria are respected. To coordinate the definitions of all the criteria, the FLO network (Fair Trade Labeling Organizations) is in charge of harmonizing the quality norms, professionalizing the control mechanisms and creating a certification structure. The goal of this action is to make the small producers more and more independent and capable of developing their own structures according to their needs.

Mrs. Bohr, from Fair Trade Village, spoke about rural development in the Ushagram region, near Calcutta, India. This association was created to permit equality of opportunity, economic independence and dignity for this population through the sale of handicraft products on the local market. In general, the reoccurring problem of the population living in far rural areas is to find distribution networks ensuring their subsistence. Mr. Albohair, from the same organization, wishes that fair trade would be the way of trading and not only an alternative to the classical trade since the latter is not ethical anymore; it only looks for the profit. Actually, certain trademarks commercialize only fair trade products in order to have good conscience while pursuing their "decadent principles." Mr. Albohair insisted on the distinction between fair trade and ethical trade. The first concerns small producers, even if their products are sold in important distribution networks, where as the second is not involved much with small producers from the third world.

In conclusion, Mr. Faye explained several points: He encourages a diversification of cultures in order to face fluctuations in the raw materials stock market. It is necessary to apply a wider strategy of dialogue. We need to find a means to integrate the two types of commerce in order to get rid of the notion of an alternative. To be efficient, we need to reinforce the idea of fair trade in order to weave a web of solidarity among the countries. We also need to connect the producers with the consumers in order to develop a synergy that will pursue the development of fair trade by creating representations at several levels of the international economic structures. Some alliances are from that moment possible with various entities including multinationals.

By: Melvina Araman and Didier Dutoit
Translated by: Kristin Karla Bailey and Kouraich Jaouahdou

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