EFTA Fair trade Yearbook 1997

January 1998

Introduction

Trade and investment that depends on the exploitation of the most marginalised, be they in rural communities or in urban slums, is not sustainable. Forcing small farmers to neglect their land and crops, to move to over-crowded cities in search of work and food, reducing workers to human production machines, where they have no rights and no protection is not a model of development that can reduce poverty and improve the conditions of the poorest into the next century.

There is an urgent need for a new vision of responsible and sustainable trade.

This vision is the model of the European Fair Trade Association (EFTA), a federation of 12 fair trade organisations in nine European countries. With their experience of several decades in the field of importing fairly traded goods, they can be called pioneers of fair trade in Europe. They have been instrumental in the trend whereby more and more consumers are considering the ethical aspects as well as ecological aspects in their purchasing decisions. Fairly traded products of high quality are not only available in more than 3000 world shops, but also in an increasing number of supermarkets in many European countries. Turnover in the fair trade sector has been rising year after year. The EFTA members are in contact with approximately 800 producing partners overseas.

Through their lobby work at a European as well as a national level, the EFTA members wish to voice their partners' interests. On the one hand, there is abundant, reliable information available on the 'unfair' aspects of conventional trade between North and South; on the other hand, there are the positive examples and initiatives of fair trade. The interested reader will find both in this second Fair Trade Yearbook. This book is meant to be a reference book for all those - in the fields of politics, economics or the fair trade movement -who want to keep themselves informed about the development of fair trade.

Therefore, the structure of the first EFTA Fair Trade Yearbook was largely maintained: Part I provides information on the framework of international trade along with trends towards globalisation and market liberalisation (chapter 1). It also provides information on the history, successes and demands of the fair trade movement (chapter 2). Part II analyzes some of the most important commodities for the South: coffee, tea, cocoa, sugar, bananas, textiles, leather and - new - rice and timber / wooden products. All chapters contain the most recent figures and information possible. However, there are two developments to be noted, which became known only after the deadline for the different chapters:

• In late October 1997 the European Parliament decided to adopt a controversial proposal of the European Commission to allow the substitution of cheaper vegetable fats for cocoa butter up to 5 % of the total fat content of chocolate products. However, the European Parliament attached stringent conditions to accepting this proposal. These conditions include, among others, that substitute vegetable fats would be limited to tropical fats not enzymatically modified; the presence of these fats must be indicated on the front of the chocolate wrapper; no quality mark could be awarded to chocolate containing such fats; the proposal would depend on the establishment of an adequate detection method; and the effects of this proposal on developing countries must be evaluated within three years of its coming into force. This decision of the Parliament takes into consideration, at least partially, the EFTA demands with regard to this problem. However, it is a long way from the optimal position as far as cocoa producing countries, especially the small producers, are concerned.
  
  
• In late September 1997 the World Trade Organisation (WTO) finally arbitrated on the EU banana market regime. Proceedings had been instituted by the US (acting for major transnational fruit companies with the support of a number of Latin American governments). The EU now has until the end of 1998 to adjust its regime to bring it into line with WTO requirements. The outcome of this debate will be decisive for the whole development policy of the EU as well as for the re-negotiation of the Lom Convention.

Many dedicated people from fair trade organisations and non-governmental organisations have assisted with this book. Many thanks to all of them!

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