Brussels, 07/05/2009 (Agence Europe) - The European Council's strategy on sustainable development, adopted in June 2006, encouraged EU member states to promote sustainable products, including Fair Trade products. In a report on Fair Trade and development the same year, the European Parliament underlined the need to heighten consumer awareness, and highlighted the fact that companies were entering the Fair Trade market without complying with certification criteria. One year earlier, the Economic and Social Committee (ESC) had presented an exploratory opinion setting out the provisions for consumer guarantees. Its main conclusions highlighted the need for official assessment of the quality of these provisions and the need for key definitions to be adopted.
In response to the Parliament's report and the opinion of the ESC, the European Commission tabled a communication, on Tuesday 5 May, which analyses the role of the public authorities and operators with regard to Fair Trade and non-governmental sustainability assurance schemes relating to trade. Since 1999, when the Commission brought out its first communication on the issue, Fair Trade has considerably developed. Today, European consumers each year buy €1.5 billion worth of Fair Trade products, i.e. 70 times more than 10 years ago.
Given the positive role of Fair Trade and trade-related sustainability assurance schemes, the Commission plans to keep its commitment and continue to support these schemes. In its conclusions on the role of the public authorities with regard to Fair Trade, it underlines the need to maintain the non-governmental nature of Fair Trade and other similar sustainability assurance schemes throughout EU territory as, it says, regulation by public authorities could hinder the correct functioning of dynamic private systems. The Commission notes that Fair Trade is a sizeable segment of the Union's market and has the advantage of being well-known by consumers. The Commission says that this can be explained by the elaboration and transparency of standards and principles on which this system is based. It also points out that the many kinds of private systems can contribute to the accomplishment of sustainability objectives but that their multiplicity often confuses customers. According to the Commission, it is therefore necessary to deepen reflection on the principles that help to obtain maximum impact of private insurance systems on trade sustainability, while refraining from any definition of sustainability standards to which these private systems should conform. That said, operators are still compelled to respect relevant sustainability standards and legislation put in place by the public authorities. In this context, the Commission reaffirms the need for transparent and appropriate information for consumers about private sustainable insurance schemes. The Commission believes that they should establish a common interpretation of basic operation demands such as independent follow-up. The Commission also points out that the continued impact assessment of private sustainable insurance schemes might represent a big step forward. It intends to examine the possibility of deepening dialogue, cooperation and if needs be, convergence between the different private label allocation schemes in an effort to promote possible synergies and consolidate consumer clarity. In the context of public procurement, the Commission highlights the usefulness of providing guidance to public purchasing authorities to help realise the full potential contribution to sustainable development of their decisions. It says that a contracting authority that intends to purchase sustainability assurance goods should only use criteria linked to the subject matter of their purchase and comply with the other relevant EU public procurement rules. Contracting authorities must always allow bidders to prove compliance with these standards by using Fair Trade labels or by other means of proof.
In the context of financing, the Commission intends to continue funding for relevant Fair Trade and other sustainable trade related activities in accordance with its practice to date. This does not exclude the possibility of also financing more targeted action in order to pursue priorities identified. It notes the need to assess the results of analyses of the impact of private sustainability assurance schemes on sustainable development parameters, including the implications for economic, social and developmental criteria in producing countries. Given the focus of private sustainability assurance schemes on the working and living conditions for producers in developing countries, the Commission considers that particular attention should be given to this aspect. Analysis should compare the impact of various private schemes so as to provide a basis for possible further initiatives in this field. (E.H./transl.jl.rh.rt)