Thursday 26 June 2014

Fair trade: Out of the margins and into the mainstream?

House of Lords panel discussion on Trade out of Poverty
On Wednesday 25 June I joined representatives of retail and trade justice organisations in the Members’ Dining Room of the Houses of Parliament for afternoon tea. We had been invited by the Fairtrade Foundation and the Ethical Trading Initiative to  a panel discussion chaired by Baroness Young of Hornsey.
I’d never been inside the Houses of Parliament before and as a self-confessed political geek I found it exhilarating to be inside Pugin’s iconic building. Despite the presence of tourists and invited guests milling around, there is an eerie hush as you move through corridors lined with leather benches and stained glass windows. The Members’ Dining Room has a magnificent view over the river Thames and its plush surroundings provided a rather jarring counterpoint to our discussion about the difficulties faced by workers in the developing world.
Baroness Young opened the debate by talking about the Rana Plaza disaster and the recent reports of slavery in the Thai prawn fishing industry, to indicate that workers’ rights are at the forefront of many consumers’ minds. 
The Minister for Employment Relations and Consumer Affairs, Jenny Willott described the statistics produced by the department showing 83% of consumers think it is important for retailers to have an ethical policy and 40% of consumers would change their buying behaviour in response to a company’s ethics. She said she was shocked that many of the retailers whose clothes were made by factories in the Rana Plaza complex were not even aware that this was part of their supply chain, and forcing companies to examine and be accountable for their supply chain was the best way to ensure such a disaster did not happen again. Ms Willott argued that transparency was the best way to harness the power of both consumers and shareholders to choose to take their business and investment elsewhere. 
Giles Bolton, Tesco’s Head of Ethical Trading Policy said that trade was the most sustainable way out of poverty and that millions of Chinese had been raised out of poverty due to multinational companies moving production there. He talked about the recent reports of slavery in the Thai prawn industry and stated that Tesco had learned an important lesson about reducing supply chains in order to ensure traceability. Baroness Young added that it sometimes felt like journalists were the only people willing to trace supply chains and wondered why it was so hard for companies to do the same work as journalists.
Chief Adam Tampuri, Chair of Fairtrade Africa, and a cashew nut farmer from Ghana concentrated on the ways in which Fairtrade benefits farmers and their communities. He explained how empowered his community feels when given the opportunity to decide how the Fairtrade premium is spent, and that they really value feedback from all stages of the supply chain so they can build better businesses. He stressed the importance of investment not just in farmers but in moving all aspects of the production process to the developing world so that more and better jobs are created and so that farmers’ children are no longer reliant on one industry, giving them more choices.   
In short, then: transparency; no forced labour; capacity building - three of the Ten Principles of Fair Trade which underpin everything BAFTS hopes to achieve.
Working in fair trade for almost ten years now I have heard these arguments many times before but I came away from this meeting pleased that trade justice issues were being raised in such a high profile place and with so many mainstream retailers present. As well as Tesco I noticed representatives from Waitrose, M&S, New Look and H&M as well as committed Fairtrade brands like Divine chocolate and many more. Maybe it’s time for ethical trade to move out of the margins and into the mainstream
Joanna Pollard

BAFTS Chair