The findings of the questionnaire show that fair trade has a higher application
in different countries than ethical finance. Fair trade initiatives are
available in 44% of the member states of the Council of Europe, while
legislation supporting fair trade exists in 24% of member states.
The legal initiatives, which up to now exist only in western European
countries, (1) take place at national, regional and local level. At European
Union level several legal initiatives have been set up in all three legislative
categories.
Concerning the quality of commitment, existing fair trade legislation is
summarised below.
a. Initiatives which recognise the fair trade sector
In this category different regulations can be found that pick out fair trade
as a central theme and express the need for support for the sector. They
can be found, for example, in declarations of different public authority
organs (2), in fair trade resolutions (3) and in legislative proposals
(4). Advanced
examples for regulations in this category include resolutions in Austria,
Belgium and Spain where legislation has been introduced at local,
regional and national level. The national Belgian initiative (5)
sets out concrete,
detailed strategies on how to further the sector. In addition to an
analysis of the situation of the fair trade sector, the initiative points out
the lessons which can be learned from the past to promote strategies to
support the sector and develop a plan of action. The proposed Italian law
(mentioned above) could become important as an example for Europe if
it comes into force as it covers the fair trade sector as a whole.
The European Union, which stated in the Treaty of the European Community
(Article 177) its aim to foster the sustainable and economic and
social development of developing countries, has expressed in many other
documents the need to support the fair trade sector. These include the
development of fair trade labelling initiatives, financial support and promotion
of fair trade activities (6), the demand of assistance for fair trade
bananas (7) and fair trade coffee (8), the plan to set up a working group on
fair trade (9) and the provision of different proposals (10) to improve the
functioning of the fair trade sector. In the Resolution of 2 July 1998 the
European Parliament stated that fair trade is the most efficient way of
promoting development. A “Sustainable Trade Action Plan” of the European
Commission, which was discussed in a meeting on 2 July 2003,
includes further measures to promote sustainable and fair trade. Fair
trade also forms part of the considerations of the Commission concerning
the Report of the World Commission on the Social Dimension of
Globalisation 2004.
la mondialisation.
b. Regulations which provide legal support for the fair trade sector
At this level of legislation states have decided to actively support the
sector. They do this by providing either financial support or supplying
different favourable legal frameworks for the sector.
The financial support comes from local, regional and national public
authorities and is primarily directed to the following purposes: awareness-
raising, private and public campaigns, supporting fair trade associations,
support for fair trade labels, creation of new fair trade labels, support
for “fair weeks”, development and market introduction of new fair
trade products, support for national and international structures of fair
trade, for fair trade conferences, for research (handbooks) or for different
fair trade projects (11). Germany distinguishes itself as exemplary in this
class as it is currently investing strongly in the fair trade sector. The Programme
of Action 2015 comprises numerous initiatives to give financial
support (e.g. € 6,48 million for 2003-2005) to the sector and aims to
double fair trade consumption in Germany.
As different favourable legal frameworks the following may be mentioned:
communications which help fair trade products to be introduced
into public procurement (12), conventions which guarantee the transactions
of the fair trade sector (13), special tariffs for fair trade advertisements on
television (14), state recognition of fair trade organisations (15), ombudsman
consumer guidelines and social label legislation (16), and regulations for
social enterprises and non-lucrative organisations (17). Belgium may be seen
as a leader in this field as it provides many kinds of favourable legal
frameworks (public procurement, guarantees, social labels) with high
commitment to the fair trade sector. It is followed by France, which offers
official state recognition of a fair trade organisation and the privileged
promotion of fair trade on television.
The European Union has until now basically supported the fair trade sector
by providing financial means for awareness-raising campaigns, for
research or for the improvement of the structure of networks (18). If the
Sustainable Trade Action Plan of 2003 is put into practice other support
will also be available such as: the establishment of a European Unionlevel
system of accreditation/recognition of sustainable, fair and ethical
trade labels, the promotion of sustainable and fair trade criteria in public
procurement in the European Union, and support to increase developing
countries’ exports of sustainable products.
c. Commitment of public authorities to the fair trade sector
The last class comprises local, regional and national decisions through
which different public authorities (19) demonstrate that by consuming fair
trade products they are engaged in the sector. The legal initiatives differ
with regard to the number of products chosen (20), the amount consumed
and whether consumption takes place regularly or only at special events.
Moreover, some public authorities (21) commit themselves to the long-term
promotion of fair trade. Belgium and Germany may be mentioned here
as their public authorities consume fair trade products at local, regional
and national level. Bamberg in Germany buys flowers, from the region if
possible, otherwise it buys from “fair” production. The United Kingdom
stands out in having around 1000 local councils consuming fair trade
products (22).
The European Union adopted a resolution in 1991 on coffee consumption
and the introduction of this coffee within the community institutions
as a means of active support for small Third World coffee producers.
From Esther Petridis, Trends in Social Cohesion n°12,
"Ethical, solidarity-based citizen
involvement in the economy :
a prerequisite for social cohesion", Council of Europe publishing,
2004, pp. 94/99
1) Fair trade activities have already started in
some eastern and southern European countries such as Albania, Hungary, Poland
and Slovenia, but there is no corresponding legislation yet. 2)Austria: concepts for
the implementation of a fair local procurement; Belgium: Law of 25 May 1999;
Federal, National Plan for Sustainable Development 2000-2004; France: Common
Declaration; Germany: Coalition Agreement; Report of an Enquete-Commission;
Answers for Parliamentary Requests; the Netherlands: parliamentary request concerning
a sustainable purchase policy; Spain: Law on International Development Cooperation
1998; Switzerland: Report of the Commission for Foreign Policies – 18.2.2002; the
United Kingdom: strategy for sustainable development; framework for sustainable consumption
and production; report on sustainable development in public procurement
2002. 3)Fair trade resolutions of public authorities are available,
either at national, regional or local level, in the following countries:
Austria, Belgium, France, Germany, Italy, Liechtenstein, Norway (local), Spain,
Switzerland and the United Kingdom. Norwegian fair trade organisations have
lobbied for a fair trade resolution at national level – until now without
success. 4) XIV Legislatura, 14.4.2003, Camera dei Deputati No. 3892: This – not yet adopted –
Italian law proposal envisions amongst other advantages (e.g. Art. 7: creation of special
funds in favour of fair trade) different fiscal incentives for the fair trade sector (Art. 4: fiscal
regime incentives for fair trade; Art. 5: tax reduction for fair trade products; Art. 6:
reduction of the turnover tax of fair trade products from 20% to 4%). 5)See Note Stratégique transsectorielle, 14.11.2002. 6) Labelling initiatives: Economic and Social
Committee on the European fair trade marking movement – CES 538/96 E/as; European Parliament Resolution on social labelling;
financial support: Regulation of the European Commission No. 856/1999 – 22.4.1999;
promotion: EU’s Partnership Agreement with African, Caribbean and Pacific countries,
Cotonou, 23.6.2000; Council Resolution on development education and raising, European
public awareness of development co-operation, 8.11.2001; Communication from
the Commission to the Council and the EP, Agricultural Commodity Chains, Dependence
and Poverty, Proposal for an EU Action Plan, 12.2.2004. 7) Resolution EU-ACP Joint Assembly 1997. 8)European Parliament
Resolution on the crisis in the international coffee market, P5-TAPROV(
2003)0189. 9) European Commission: Document on Alternative
Trade. 10) European Parliament: Fassa Report 1998, A4-0198/98, PE 225.945. 11) Such financial support can be found for example in Austria, Belgium, Finland, France,
Germany, Luxembourg, the Netherlands, Norway, Portugal, Spain and Switzerland. 12) Austria: expert opinion concerning the
introduction of fair trade products into public procurement; Belgium: law for
public procurement (24.12.1993) changed through the law programme of 8.4.2003
(Article 16), which allows, with regard to the tender, to take social, ethical
or environmental aspects into consideration; State Secretary Circular letter
concerning “responsible procurement” in the form of an internet website : www.guidedesachatsdurables.
be; Germany: Decision of the Munich Council that certain products have to be tendered
with respect to the ILO Convention (2002); Italy: regulations concerning the
integration of fair trade products into public procurement in Rome; the United Kingdom:
Guidelines of the Office of Government Commerce which show how government procurement
offices can source fair trade foods (March 2004). 13) Convention between the Belgian state and the
“Coopération Technique Belge”, which
sets up a mechanism to guarantee the transactions of fair trade (2003). 14) Letter of the French Prime Minister, which
offers a special tariff for advertising fair trade in the public media. 15)In 2003 the French state awarded to the Max Havelaar association the label “campagne
d’interêt général”. 16)The Belgian law for
the promotion of socially responsible production (27.2.2002) distinguishes
products with a public label, which follow a socially and environmentally
responsible production process. The Consumer Guidelines of the Norwegian
Ombudsman state when companies can use the expression ”ethical” and “fair trade”
(2003). 17)The Italian laws on
social enterprises (November 2003), on non-lucrative organisations (Decree
460/1997) and concerning the organisations for voluntary service (1991)
privilege among others fair trade organisations, for example with fiscal
advantages. 18)A description of the
activities of the European Union in support of the fair trade sector can be
found in the Communication from the Commission to the Council on fair trade,
29.11.1999, COM(1999)619. 19)Such as the federal
chancellor’s offices, offices of prime ministers, offices of presidents,
ministries, national and regional parliaments, parties of the parliament,
federal states, senates, chambers, kings, queens, local municipalities, mayors,
general and regional councils, city councils or national universities. 20) The most frequently chosen products are coffee and tea. Other products available
include bananas, honey, cacao, sugar, fruit juices, rice or jam. 21) For example, many local authorities in the United Kingdom.
22)JO C 280, p.33, 51991IPO228 -28.10.1991.
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