In an effort to increase fairness among all parties involved with the trade process and the distribution of the benefits that come from the industry, the Fair Trade Advocacy Office in Brussels and United Nations Conference on Trade and Development signed off on a MoU that will directly impact developing countries and their trade sector. Talks of removing labels are among some of the long-term goals mentioned by Sergi Corbalan, executive director of the Fair Trade Advocacy Office.
“We want all farmers to receive a decent price. We want all cooperatives to be strong and able to negotiate the terms of trade. If there’s eventually no need for fair trade labels anymore then it’s very good news,” Corbalan explained.
The reduction and eventual elimination of these labels provides increased opportunities for producers and farmers in developing countries while relieving them of current limitations currently seen with agriculture, home-wear, cosmetics, jewelry and clothing as well as textiles. Partnerships like these spark questions about the increase of partner integrations and how these will impact international trade relationships and profits in the coming months.
An additional motivating factor for the partnership is the need for improved pricing standards for farmers. Through this initiative, the elimination of all trade labels in exchange for improved trade negotiations would support the changing of the trade structure system, providing new and improved ways for developing countries looking to increase their profit. According to a press release from UNCTAD, the unification between the two aims to, “promote a fair and equitable distribution of benefits among value chain actors, especially workers, artisans, smallholder producers and micro, medium and small enterprises.”
By improving the trade structure as a whole, this effort reaches the population of farmers and producers who don’t have labels, primarily in the African, Asian and Latin America regions. In a statement from last week’s press release on the subject, Mr. Corbalan explained that the goal is to provide fair opportunities for everyone.