Just before Thanksgiving, the New York Times' William Neuman published an interesting piece on an emerging rift within the US fair-trade community.
Fair Trade USA, the main US fair-trade certifying entity, has announced plans to essentially lower its standards in the new year, Neuman reports. The group announced it would sever ties with Fairtrade International, "which coordinates fair trade marketing activities in close to two dozen countries," Neuman writes. And large coffee plantations will be eligible for certification—before, only small cooperatives could receive the seal—as will "products with as little as 10 percent fair trade ingredients, compared with a minimum of 20 percent required in other countries."
The plans have enraged the people behind Massachusetts-based Equal Exchange, a stalwart purveyor of fair-trade products. "It's a betrayal," Equal Exchange president Rink Dickinson told Neuman. "They've lost their integrity."
Fair Trade USA, of course, defended the changes. Here's Neuman:
Paul Rice, chief executive of Fair Trade USA, said the fair trade movement was dominated by hard-liners who resisted needed changes. "We're all debating what do we want fair trade to be as it grows up," Mr. Rice said. "Do we want it to be small and pure or do we want it to be fair trade for all?"
He dismissed criticism that his group was seeking to increase revenue for its own sake. "The more we grow volume, the more we can increase the impact" of fair trade, he said.
Who's right? To think it through, it helps to remember why fair trade exists in the first place. The idea behind the movement is pretty simple: International trade in tropical commodities like coffee, chocolate, and bananas may sound like a great deal for workers and small producers in the Global South, but it really isn't.