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Brussels,30 June 2000
EURO-COOP'S COMMENTS TO THE COMMUNICATION FROM THE COMMISSION TO THE COUNCIL ON FAIR TRADE COM (1999) 619.
Euro Coop is the European Community of Consumer Co-operatives, whose members are the national organisations of consumer co-operatives in 13 of the 15 Member States of the EU and in 4 Central and Eastern European countries. Created in 1957, Euro Coop today represents over 3,200 local or regional co-operatives, membership of which amounts to over 19 million consumers in the EU and 2 million in the associated countries of Central and Eastern Europe.
Euro Coop welcomes the European Commission's communication on Fair Trade (COM(1999)619) and hopes that the EU's efforts to promote Fair Trade will continue.
Euro Coop supports the principles lying behind the fair trade movements. As such, social, economic and democratic development is favoured in areas where fair trade labelled goods are produced. The labelling guarantees farmers and workers reasonable remuneration for their work, the right to form a union and proper employment contracts. Besides, child labour is not allowed under Fair Trade labelling. The products are purchased directly from farmers on long-term contracts. The Fair Trade labelling enables the consumer to contribute to fair trade practice world-wide.
Euro Coop believes that consumer co-operatives have an important role to play in promoting and informing consumers about fair trade products. In this respect, Euro Coop's member organisations as consumer co-operatives have a long history of trying to develop Fair Trade products within their co-ops and members of the consumer co-operatives have consistently argued for more Fair Trade products to be on sale within their Co-ops. Please see the annex attached for examples of actions taken by Euro Coop's member organisations over the years in their respective country.
In this context, Euro Coop would like to give its views on the issues raised for debate in the Commission's Communication.
Definition of 'Fair Trade':
Currently, Euro Coop is not aware of any abuse of the description 'Fair Trade' and remains to be convinced that a legal definition is necessary at this stage. However, Euro Coop believes that any definition of Fair Trade should highlight the importance of trading relationships with small producers in the Southern countries of the world. Meanwhile, the Commission should try to bring together all the major stakeholders to agree on a common label based on certain criteria.
Common Criteria:
Euro Coop believes that general common criteria for Fair Trade products should be an objective. As Fair Trade products expand, particularly into the 'further processed' products area, the need for common criteria becomes more important. The Commission should assist the various stakeholders in setting up the general common criteria. Such common criteria have already been developed by some Fair Trade organisations and could be used as a basis for developing general common criteria for all Fair Trade organisations. However, it is vital that these criteria do not overburden the resources of small producers and jeopardise their participation in Fair Trade projects.
Consumer Choice on Information:
Euro Coop believes that the Commission should have a role in monitoring the Fair Trade market and informing consumers about it. However, at this stage, Euro Coop does not consider that the Directive on Misleading Advertising (84/450/EEC) would be an appropriate vehicle for controlling and monitoring the Fair Trade market. In terms of external monitoring or accreditation systems, these must not be burdensome on the smaller producers.
Voluntary Participation:
Euro Coop agrees that participation in Fair Trade must remain voluntary.
WTO Compatibility:
Euro Coop believes that Fair Trade products, given their voluntary nature, should not fall foul of any WTO provisions. However, if a legal definition of Fair Trade is introduced the WTO might start looking more closely at Fair Trade products in terms of a barrier to trade. This could be fatal to the whole idea of Fair Trade.
Dialogue with the Fair Trade Movement:
Euro Coop would welcome the establishment of a platform for dialogue with the Fair Trade Movement. This would facilitate the work of the Commission in trying to generate general common labelling and accreditation criteria for Fair Trade products.
In conclusion, Euro Coop see no need, at present, for the Commission to propose a legal definition of Fair Trade, which may be too strict and may discourage socially important import of artisanal products from the Southern countries of the world, which are not significant on a trading level. However, any abuse or confusion among consumers should be kept under control regarding the Fair Trade terminology. In stead, the Commission should seek to work with stakeholders to develop common criteria and labelling for Fair Trade products. It is important to keep in mind that the primary aim of Fair Trade is to support a social, economic and democratic development in less-developed countries.
ANNEX :
The annex provides an overview of some of the actions taken over the years by some of Euro Coop's member organisations on Fair Trade products.
DENMARK:
In Denmark, our member organisation, FDB, has launched Co-op Brand Fair Trade products and has sold Fair Trade bananas for the past four years. Furthermore, FDB has a wide range of Fair Trade coffee, tea and chocolate. In co-operation with the Danish Max Havelaar organisation, FDB has been launching information campaigns on Fair Trade products in their co-op shops.
FINLAND:
In Finland, our two member organisations SOK and TRADEKA, are selling organic Fair Trade coffees and teas in their Co-op shops. The Finnish fair trade mark is quite new in Finland, only about one year old. The products have been advertised in magazines, television etc.
ITALY:
In Italy, our member organisation, ANCC, has been selling fair trade products produced by small farmers in developing countries with a Trans Fair certification since 1995, such as coffee, tea, honey and cocoa, in their Co-op shops. Furthermore, the Co-op shops are selling a Fair Trade football produced in Pakistan by a factory respecting international labour standards and not using child labour. The Fair Trade football is sold under the non-governmental organisation Fair Trade, which inspects the labour processes and certificates the product. Since 1996 ANCC has been promoting fair trade activities to Co-op members and consumers through brochures and exhibitions for young people at ANCC's own education centres and in Co-op shops.
PORTUGAL:
In Portugal, our member organisation, FENACOOP, sells Fair Trade coffee and tea. In October 1999, FENACOOP organised a seminar on Fair Trade. Currently, the organisation is looking into the possibility of expanding their range of products. As the co-operation it had with a Co-operative in Guinea-Bissau on rice cultivation has ended because the project itself stopped lacking finances and expertise.
SPAIN:
In Spain, our member organisation, HISPACOOP's main Co-op Eroski is selling Fair Trade coffee and tea. When the products were first introduced leaflets with information about Fair Trade were available to the consumers.
SWEDEN:
In Sweden, our member organisation, KF, has been selling Co-op Brand Fair Trade coffee, tea and chocolate since 1996. KF was the first supermarket in Sweden with a Fair Trade own brand. KF has as a principle that the products have to be organic and Fair Trade labelled at the same time.
UNITED KINGDOM:
In the UK, our member organisation, CWS, has launched a Co-op Brand Fair Trade chocolate bar. This follows the introduction into the Co-op range in January 2000 of Oke Brand Fair Trade bananas. In addition, CWS has an established range of Fair Trade tea, coffee and chocolate. Co-op shops have also promoted Fair Trade products in-store during 'Fair Trade Fortnight' - an event the Co-op shops organise each year. However, this year the co-op shops will in partnership with the Co-operative Bank ask the members of a Co-op to also make a 'Fair Trade Pledge', in terms of buying a different Fair Trade product each month. Besides, CWS has also published consumer information leaflets to explain the difference between Fair Trade products and ethical trading. As well, CWS is part of the UK's Ethical Trading Initiative (ETI). The ETI brings together NGOs, Trade Unions and business organisations to develop ethical trading.
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