FTIS 2008 (Fair Trade International Symposium)

Workshops on Topic A : The diversification of types of organisations in the North

Research on this issue was done through a territorial approach along with clearly identified areas of study. Thus there were studies on the structuring and positioning of fair trade organisations and networks in Bourgogne, Corsica, Ile-de-France, Brittany and in Belgium. Two further studies examined collaboration between fair trade activists and local farmers in Rhône-Alpes, as well as the steps taken to strengthen marginalised farmers in Languedoc-Roussillon.

This approach brought to light the existence of shared work systems, based on important networking among fair trade actors at a local level. It also showed how the objections which exist within the movement at a national level are often overcome at a local level, and this in terms of the industry, of models and political conceptions of fair trade.

A contrario, it was observed that the envisaged rapprochement at a national level between North-South and North-North fair trade initiatives may encounter difficulties and opposition during the implementation of said initiatives at a local level.

One subject was recurrent throughout the workshops: the movement’s process of professionalisation. This is manifest in a more technological approach and in gearing activities towards primarily economic dimensions where profitability, marketing management and standardisation take ever-greater prominence within the structures.

This is the case for example in Belgium, where business structures have appeared over recent years and delegated the activities of education and lobbying to the associations. A study in Bourgogne shows the same process of professionalisation in voluntary associations over recent years.

Workshops on Topic B : Consumers and their reaction to the growth of fair trade

The disciplines mobilised for this topic were marketing, sociology and anthropology. Research primarily led to an analysis of consumer motivation and of the determinants of purchasing fair trade products. Some of these results are of significant interest for professionals, as they can be applied almost directly to the fields of marketing, communications or price-fixing policies.

Various studies on willingness to pay show that if consumers are prepared to pay more for fair trade products, the products on offer must respect a certain number of models concerning consumers’ tastes and habits. Furthermore, comparative studies on consumers’ willingness to pay for products that are certified organic and fair trade, show that whilst they are prepared to pay more for a doubly-certified product, the price difference does not systematically cover the costs of double certification at the production level. Finally, consumers are generally in favour of co-branding, that is, products which associate the Max Havelaar guarantee with conventional brands such as Carte D’Or or Nestlé.
As regards determinants of purchasing, research has analysed consumers’ perceptions of labelling and guarantee systems. It highlighted the importance of consumer confidence in the labels as an encouragement to purchase.

Further research has explored the image consumers have of fair trade. By way of example, one undertaking looked at the impact on purchasing when the words “small producer” were mentioned on communications tools linked to fair trade products (packaging, advertising, etc). Another compared the influence of the colonial past on the image and values associated with fair trade in Germany and in Great Britain.
Finally, if the hedonistic aspect of the act of fair trade is often picked up on by researchers, studies have shown that there is a strong link between hedonism, altruism and citizen engagement on the part of consumers.

Workshops on Topic C : Producers: their organisations; the impact of fair trade on their conditions

This topic, the most discussed during the Symposium, with around twenty speeches, was marked by great heterogeneity in the work presented, both in terms of the subjects studied (industries, actors, geographical localisations) and as regards disciplines of research and methodologies. A recurring problem in the impact studies concerns the methods of attribution of the effects of fair trade. To what extent can the positive or negative changes in a community be attributed or otherwise to fair trade? Another methodological issue which mobilised researchers was the difficulty of comparing impact studies. Among other things, this was due to the heterogeneity of certification modes, the industries concerned and the actors mobilised. Interaction between fair trade labelling and organic farming labels also complicates research and results analysis.

Among the recurring observations, numerous researchers have shown that for producers, entering into the fair trade network is part of a broader strategy of activity development, in which other initiatives are also involved. In certain industries we note a concurrence between vertical integration and product certificates, as well as the juxtaposition of fair trade initiatives and product promotion initiatives through Geographical Indications of Origin, solidarity tourism or micro-financial support. The matter of the best way of structuring these initiatives in order to better profit from their complementarities, requires more in-depth evaluation of the training, imitation or distribution mechanisms which may exist among them.

The debate on the distribution of negotiation power between the actors was very prominent throughout the workshops. We have often observed that fair trade could be an effective tool for producers both in the South and in the North to gain power within the industries. However, actors from the South are still suffering from a power deficit in the fair trade movement, as was noted in the example of the banana trade.

Workshops on Topic D : New products, services and systems associated with or similar to fair trade

Firstly it was a question of examining the interaction between certain initiatives such as sustainable development, social responsibility of companies, political consumerism, ethical trade (etc.) and fair trade.

Additional management constraints which force fair trade to enter into the sustainable development project were also presented. The consequences for standards, modes of certification and structuring of the actors’ network were also raised, this being due to the involvement of political consumerism movements in the launch of certified Max Havelaar cotton in Switzerland. Finally, a case study analysed the role of fair trade, the organic approach and quality control in the construction and structuring of a textiles industry.

Secondly, researchers presented their analyses on the involvement of conventional actors in fair trade. The important differences in the commitment of conventional actors to distribution in the United Kingdom were highlighted, both in terms of support, contributions and investment in the fair trade movement. The involvement of the Dole Food Company in fair trade initiatives and the social responsibility of companies was also examined.

This led to questioning the certification systems and the importance of the existence of a regulatory framework for fair trade, so that consumers and the movement can be assured of the seriousness and the quality of the conventional actors’ commitment to fair trade.

Workshops on Topic E : Fair trade regulation: guarantee, labelling, certification and accreditation systems

During these workshops, various studies brought to the fore the fact that the choice of a guarantee strategy varies according to the industry and the actors. These differences in strategy are partially due to the intrinsic differences of the guarantee systems, which present advantages and disadvantages that differ from one system to another. In the case of the fair trade roses in Tanzania, the label guarantee has not proved to be particularly relevant. Indeed, consumers’ development of the nature of partnerships with producers, based on confidence and transparency, seemed the best guarantee strategy for this industry.

Furthermore, the study of the evolution of partnerships within the vertical integration framework of the Artisans du Monde movement, showed how they can sometimes experience qualitative deterioration as they develop and become more complex.

Concerning the definition of fair trade, debates arose on the issue of the nature of legitimate actors in order to fix the terms. The link between certification and transparency was brought into question by the study of the social label Rugmark India: the label certifiers preferred to maintain a level of opaqueness in the procedures, to the benefit of the producers. On the other hand, it was shown how those involved in procedural regulation tend to become simple economic actors. In this regard they lose their independence and their denouncing force born from social movements to the benefit of one communication, marketing alone.

Finally, the idea of the alternative of public regulation of fair trade was tackled, using the French example. Two speeches respectively discussed the evolution of the legal framework on social responsibility of companies, which is ever more restrictive but which does not yet include sanctions, and the current legal framework of public regulation on fair trade. This issue sparked many debates on the real interest of the participating parties to establish a single standard, on the most adequate procedure for a public standard (ISO standard, participatory process…) and on the content and the field of application of this standard.

Workshops on Topic F : The political and ethical issues surrounding fair trade

First of all, several researchers discussed the concepts of fair trade and neo-liberalism. Calling on different approaches, this research was pooled, confirming that fair trade remains submerged in the neo-liberal system. However, this submersion is ambiguous as it implies the introduction of an objective which is foreign to the neo-liberal system: that of equity.

On the other hand, fair trade’s capacity to bring about changes in organisations was tackled, and this from two different standpoints. Firstly, a quantitative analysis of fourteen organisations involved in fair trade showed the existence of important changes in practices at a strategic level and in a lesser way at a more conceptual level. Secondly, a study on the institutionalisation process of fair trade presented and compared the different strategies of distribution which could arise for fair trade in the future (focussing, hybridising or standardisation).

Other debates also enlivened discussions: the imposition of values dictated by the North and their appropriation by actors in the South, the issue of demand for transparency in commercial activity and the role of political consumerism as a real lever for change in international trade.
Finally, questions on the development model which we are aiming to implement were also raised, as well as on the role of development agencies in fair trade’s future and the need to evaluate the long-term impact of fair trade.

Video of the summaries of the workshops during the final session of the symposium : Video