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Imports and Exports

Fair trade deal provides big benefits for developing countries

22 Oct 2018 - by Staff reporter
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The United Nations Conference on Trade and Development (Unctad) and the Fair Trade Advocacy Office last week signed a memorandum of understanding (MoU) to improve the living, and working, conditions of artisans, workers and smallholder farmers and producers in Africa, Asia and Latin America.

According to an Unctad statement, the partnership will focus on promoting a fair and equitable distribution of benefits across the value chain in priority sectors such as agriculture, home-wear, jewellery and clothing accessories, leather, cosmetics and textiles.

“We trust the cooperation of the fair trade networks with Unctad will contribute to more fairness in global supply chains and a proliferation of fair trade enterprises,” said Fair Trade Advocacy Office executive director, Sergi Corbalán.

He noted that there was a growing concern by citizens and governments over current trading practices and as consumers were increasingly using their purchases to speak on these concerns, ensuring all workers and farmers got a fair share of the benefits of trade was crucial.

Unctad deputy secretary-general, Isabelle Durant, said global sales of fair trade certified goods had climbed 8% in 2017 to reach €8.5 billion which put an additional €178 million in the pockets of 1.6 million farmers and workers.

“From day one, our belief was that the best way to help developing countries grow should come not simply from distributing aid, but through encouraging their trade,” she said. “But for trade to be a tool for development, everyone must get a fair deal [and] this is a philosophy we share with fair trade advocates.”

However, Corbalán noted that the long-term answer was not to increase fair trade certification but rather to change the system to ensure all trade was fair.

“Our ultimate goal is to get rid of fair trade labels,” he added. “We want all farmers to receive a decent price, we want all cooperatives to be strong and able to negotiate the terms of trade.”

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