Skeletons in the fair trade closet – A critical review ‘à la Française’

Frederic Karpyta - La face cachee du commerce equitable

La face cachée du commerce équitable – Comment le business fait main basse sur une idée généreuse.
[English: The hidden side of fair trade – how businesses get their mitts on a generous idea]
By: Frédéric Karpyta
ISBN: 9782849411209

The ethical fashion world is divided. This is old news. This also applies to the world of fair trade naturellement. Only: I’m talking of geographical and linguistic divisions rather than those of opinions. Even on a European level, the consequence for instance is that English books are hardly ever translated into any of the other languages and vice versa.
In this post hence, I would like to take a first step to remedy this by reviewing a book that to-date is only available in French. Although the book’s focus is the fair trade development in general, by way of association, and accompanied no doubt by numerous ‘Aha’s and ‘Déjà-Vu’, there is plenty of material that might just as well describe how the commercial game is played in the tiny world of ethical fashion.

Talking business ethics in France immediately takes a detour towards fair trade. Ethical fashion is no exception in this context, which is why this book is of such relevance to also understand the French ethical market overall. On the flip side, fair trade (or, Fairtrade – same difference, certainly after reading this book) has on the one hand become a staple in how we decide our grocery buys, on the other it is more than evident that not all is well in the ‘fair trade land’. Finally, other (newer?) labels have come along who often seem like a valid alternative and a good cause in their own right.

‘The hidden side of fair trade’ tracks the fair trade development from its beginnings: From the invention at business level of an idea which would later become Fairtrade (the certification), the sudden interest of supermarkets to jump on the band wagon (and secure their share of the market and the profits), to the proliferation of competing labels and where the compass is currently pointing towards.

The book is critical, very critical. The author merciless points out paradox after paradox, insincerity after insincerity, of the whole development. He tries to cut slack whenever possible, but at the bottom line for him the reality remains that the extra money we’re paying at the till doesn’t really get to the poorest of the poor, the small holders whose life we wanted to improve.

The book is organised into 4 parts, each of which encompasses between 3 and 5 chapters, and focuses on significant development stages in fair trade in France. In passing, the development in countries like the UK, Switzerland, Germany and Holland is repeatedly referenced and a more or less coherent cross-border picture painted:

  1. Background. Over the course of 4 chapters, 4 different historically important topics which played an essential role are introduced: fair trade as a social movement; the rise of Max Havelaar (FLO, Fairtrade); the disagreements between FLO-fairtrade partisans and those that stick to the concept of a social movement; and finally, what happens when supermarkets claim their market share and how that impacts (largely negatively) the fair trade concept overall.
    Specifically the last chapter draws up what will possibly be the fair trade movements most difficult – and still ongoing – challenge: What it means for their believes, and the practical implications, when rowing in the same boat as the large chain super-cheap retailers.
  2. The dirty laundry of a success. Divided into 5 chapters we’re given pieces of thought that not a single person working within fair trade will freely admit to. Specifically, these are:
    – despite trade marks, actually labels are only rightly called a ‘label’ if the law makes them so (hence, Fairtrade isn’t really a label, where as organic certifications are) and that FLO’s acquisition of the term ‘label’ for their own purposes was the starting signal for the ‘label’ jungle we have do deal with as consumers in the present;
    – there are valid and valuable alternatives to Fairtrade (the certification), which – it turns out – source in many cases (Coffee, Banana, in short: plantation commodities) from the same places as as Fairtrade does (e.g. Rainforest Alliance coffee)
    – supermarket chains suddenly turned the table on Fairtrade brands (such as Café Direct in the UK) and used their buying power to play the old game of reducing prices with the producers (hence, selling cheaper in their stores, which not only pushed traditional brands to the edge but puts the producers back to where they were …)
    – the dissonance between the organic movement and the Fairtrade (yes! in one word) world;
    – and finally, the reasoning behind and problems of developing further FLO certifiable commodities for cases where these goods stem from plantations (cotton, for starters).
  3. Menaces. Again 4 chapters long, we are introduced to how fair trade looks like for the majority of producers in developing markets, i.e. the ones that in theory should be the beneficiaries of the system. The first chapter introduces us to the practicalities on the producers’ side that come with multiple labels – and suggests that actually, in the case of the three biggest labels (Rain Forest Alliance, Organic, and Fairtrade), the difference may be nill. Or rather: The difference lies in the bag the commodity is packed before shipping.
    Enter global multi-nationals (Starbucks, Nestlé, Cadbury and family) and suddenly green washing and cost savings are omni-present. Or in other words: the customer on the high street appreciates their effort because now s/he can drink the coffees they would have had anyway, but feel good when doing so (example: Starbucks). Really? Again, think buying power, selective publicity, and ‘spearhead’ products.
    The last two chapters are dedicated to the impact of coffee on us consumers and the fairtrade world overall; and what research suggest where fairtrade is heading (hint: the three scenarios are: terrible, pretty bad, and not good at all).
  4. Three themes for reflection. Saddening, the current state of fairtrade, globally and trend-wise speaking, isn’t a joyful affair. The author points out that what is lacking in the sector over all, is an honest, open discourse which has solely the producers’ interest in mind. And: a willingness to find compromises that really work for all, while again putting the producers at the centre.
    Finally, the author urges to consider the truly responsible customers, those that bought their groceries in fair trade shops long before Max Havelaar or Fairtrade was a term in high street vocabulary, again as very important. Much ink has been leaked on account of the common, often believed ‘ignorant’ and ‘cheap’ mainstream consumers and their fairtrade buys. What about those who really understood what their pennies and pounds contributed to, and made a conscious choice as opposed to bending under the demands of their peers and the media?.

To conclude, this book is an absolute must read. Never have I so far come a cross a critique so thoroughly formulated and discussed as is here the case with respect to the fair trade movement. And I think it is no coincidence that this books was published in France as opposed to an Anglo-Saxon country – after all France does have the reputations of constantly rattling on the chair of what is considered the ‘establishment’.
It becomes clear in this volume, that the fair trade movement as a whole, specifically representatives such as FLO (Fairtrade), are very much part of the establishment and ‘share the bed’ with politicians, supermarket tycoons and CEO of multi-nationals if they expect a benefit from it.
The books is thoroughly written and researched, and a good, sometimes even – thanks to some pitch black humour and cynicism – an entertaining read. It is a book that requires an author who is willing to swim against the stream, and accept that he will create powerful enemies on his quest to expose the truth.

And in that, the book is a unique effort given the times we live in.

This book is available from your nearest book store as well as online from Amazon.