US fairtrade body opts for volume over standards

The US branch of the world fairtrade organisation has split from its parent body as part of an effort to increase its influence by relaxing standards.

Fair Trade USA broke with Fairtrade International after a dispute over proposals to reduce the threshold on certification – the minimum proportion of fairtrade ingredients to qualify for the label – from about 20% to 10%.

In addition, the US entity intends to increase the outreach of coffee certification which, at present, excludes large plantations in favour of independent producers and, Fair Trade USA says, denies fair grade benefits to millions of farm workers.  

Now officially independent from the international body, the new organisation has said it is ready to certify coffee plantations and start expanding fairtrade sales under the new Fair Trade for All programme.

The changes are part of its ‘commitment to include more farmers and workers in the fairtrade model’. The US organisation explained: “It’s designed to offer more fairtrade farmers the opportunity to sell their products into the global market, enable more companies to make a meaningful impact through responsible sourcing, and accurately communicate to shoppers the social and environmental benefits of purchasing fairtrade-certified products.”

However, the departure has provoked a backlash from the wider fairtrade community. Rob Cameron, Fairtrade International’s chief executive, said: “When Fair Trade USA made its decision, it did it completely unilaterally. It did not involve any of its stakeholders in the USA, and it certainly didn’t involve any of the producer representatives who, needless to say, are somewhat disorientated and upset about the situation.”

Others are concerned with the apparent watering-down of standards. Dana Geffner, executive director of the pressure group Fair World Project, said: “Fair Trade USA’s new labelling requirements undermine the ability of consumers to make informed choices. To expand and develop the fairtrade market, consumers need to trust that fairtrade labels reflect their values by being true to the content of the product.

“Fair Trade is a global movement built upon a foundation of transparency, accountability and integrity. Fair Trade USA’s unilateral decisions have failed to uphold these principles.”

However, Paul Rice, chief executive of Fair Trade USA, believes quantity should now be the fairtrade movement’s focus. “We’re all debating what we want fairtrade to be as it grows up,” he said. “Do we want it to be small and pure or do we want it to be fairtrade for all? The more we grow volume, the more we can increase the impact.”