Fair Trade, Trade Justice

Trade arguably offers the single most important opportunity to eradicate poverty on a sustained basis. For example, one report estimated that if Africa increased its share of world exports by just 1%, this would generate an additional $70 billion – more than five times what it receives in aid.

As they stand, many international trade rules are fundamentally unfair and lead to unnecessary poverty on a vast scale. A simple example is that of agricultural subsidies. Rich country governments such as the US and EU provide enormous subsidies to their farmers, often leading to overproduction of certain basic goods. These excess goods can then be dumped (sold at below-cost prices) on the markets of some of the world’s poorest countries, thereby undercutting local farmers and often forcing them out of business. Trade justice, both in bilateral deals signed between countries, and at the World Trade Organisation, is therefore a key focus of SCIAF’s policy and campaigning work, both independently and as part of the Trade Justice Movement.

We also promote fair trade, in conjunction with the Fair Trade Foundation and the Scottish Fair Trade Forum and work to promote fair trade procurement by Scottish and UK governments, contracting authorities and local councils.

‘The EU and US must ensure that the poorest countries start to benefit from international trade. The majority of citizens in least developed countries are either self-employed or are poor small scale producers and traders – and business as usual will maintain the impoverishment of these people and their families’

– Nachilala Nkombo, Jesuit Centre for Theological Reflection.

Fair Trade
The fair trade movement is a direct way individuals can bring benefits to people living in poverty in developing countries. SCIAF is campaigning for Scotland to become a Fair Trade Nation. You can read the SCIAF / Trade Justice Movement Scotland submission to the Scottish Executive on fair trade procurement: How to mainstream fair trade under EU procurement law to find out more.

You can also read SCIAF’s submission to the International Development Select Committee enquiry into fair trade, fair trade procurement and development.