Most students have heard of the fair-trade system in one form or another, whether as an option at a favourite coffee shop or a TransFair logo on a chocolate bar.
But many of them can’t explain why they decided on the fair-trade option over others. Fair-trade products have earned a reputation in the past several years as being the ethical choices for Canadian consumers to make—an image propagated by development organizations such as Oxfam Canada and Engineers Without Borders.
Fair trade is an alternative form of international commerce which places an emphasis on socially responsible systems of trade and improving standards of living for farmers in developing communities.
It does so through independent monitoring which guarantees that ethical, environmental and financial standards are being met. This ensures farmers receive a fair wage for their products and a way to compete on a global market. In Canada, fair trade empowers consumers by allowing them the choice to a socially responsible system of trade and an opportunity to directly impact developing communities.
Several prominent economists such as Marc Sidwell of the Adam Smith Institute oppose the pro-fair trade stance.
Sidwell argues fair trade is inherently unfair, offering a small number of farmers a higher price for their goods while leaving the poorest of the poor unable to purchase resources to grow high-value commodities such as coffee and chocolate. Why would prominent, well-respected organizations choose to throw their weight behind a system that clearly ignores those who may need the most help?
To answer this question, it’s important to realize that fair trade isn’t a catch-all solution to
global economic problems. But it proves to be an effective tool for systems change in nations such as Canada, bringing inequalities to the forefront of consumer consciousness.
Consumer decisions have an impact.
Fair trade helps to understand and control this impact to some degree. It also gives Canadians a venue to discuss global poverty and what can be done about it. By making a conscious choice as to what they purchase, consumers send a clear message to corporations and retailers.
By choosing to buy fair trade products, Canadians tell companies what they deem to be acceptable trading policies.
Companies respond to trends in consumption and can be swayed to change their policies accordingly.
For example, a few years ago Second Cup and other coffee chains were the target of a widespread outreach program organized by Engineers Without Borders aimed at increasing Canadians’ knowledge of fair trade products and policies.
Soon afterwards, the number of people asking for a fair trade option at Second Cup increased.
The program was also a likely contributing factor to the introduction of “Cuzco”—a fairly-traded roast option at Second Cup.
It can be argued companies offering fair trade and non-fair-trade options are boosting their socially-responsible image by only partially buying into the movement, but it’s apparent those who control a large share of commodity markets will eventually need to be influenced. This goes back to the consumer demand argument—only an increase in interest and knowledge of fair trade will allow companies to justifiably switch to fair trade products. The problems with global economic systems that leave so many behind will only be solved through active, critical discussion and analysis.
Current alternatives to these systems are ways to introduce Canadians to the complexities and intricacies of world trading practices which may otherwise seem impenetrable. By remaining open to change, fair trade is a viable and important tool in creating a new generation of socially conscious consumers.
Alternative trading systems are about ensuring good practices are being followed and fair wages are delivered to those who deserve them.
The fair trade system is by no means perfect. But it allows for healthy debate and discussion, encouraging the merger of different schools of thought all aimed at a common goal: reducing the burden of poverty for as many people as possible.
In order to positively affect this intertwined system, we should discuss, talk, research and learn as much as possible.
The next time you buy your morning coffee, you can be sure that your two dollars will stretch much further than you think. Emily Mattiussi is the vice-president (outreach) of Engineers Without Borders.
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