Fair Trade

Once upon a time, mighty western nations controlled vast empires that spread out to every corner of the planet. Huge wealth flowed back to Europe in that era... populations were enslaved, and resources were plundered, but now the old powers have handed control back to the locals and that kind of domination is all in the past, right?

As the former European colonies gained independence, plenty of economists would suggest that these fledgling nations, from Mali to Bolivia to Bangladesh, would be able to use such advantages as cheap local labour and huge mineral wealth to compete successfully in the global economy. So why, in this age of truly globalised trade, are the richest nations getting richer still, and the poorest poorer? What ever happened to the theory of 'comparative advantage' which ought to favour developing countries who can produce goods so much more cheaply than the West?

The history of the coffee trade mirrors, in essence, the history of all human trade. The great coffee growing countries have gained independence, and so in theory they now control the world’s coffee supply. However it is not these countries that grow rich from the trade of coffee, but rather the giant private coffee companies of the West who in practice still control the price of coffee today. In a world where coffee growing nations are so reliant for cash from exports, and where oversupply of coffee has been encouraged by World Bank policies, to grow coffee is to grow poor. Many of the world’s poorest countries (as measured by their GDP) rely on coffee as the backbone of their economies, and cannot easily convert to other crops to raise foreign currency. They are, in effect, the slaves who continue to supply the world’s coffee fix.

Attitudes in the West are changing, however, and more people are recognising the need to spread the profits from the trade in coffee more evenly. In recent years, an increasing number of fair trade companies have started trading coffee. By paying the growers a higher price – up to three times the world market price - fair traders provide coffee farmers with a living wage. Fair trade succeeds because an ever-growing number of consumers now understand that by paying a little extra for their coffee, they can help coffee growers all over the world to enjoy a significantly better way of life.

Western companies control the profits of almost every commodity you can imagine, and thus control almost all of the world’s trading. In an age where excessive profit-taking is coming to be seen to be inherently unfair and unethical, it is important that all people actively choose to exercise their consumer power when they shop. Every time we buy a product, we actively choose to support fair, or unfair, trade. By choosing to buy fairly traded products which spread profits more evenly along the supply chain, we can all make a difference to the lives of others, every day.

To learn more about global trade, and the important role that responsible fair traders are taking to confront the huge injustices in its practices, venture forth to the site of New Zealand's foremost and most respected fair trade organisation, Trade Aid...