The European commission wants to promote fair and ethical trade schemes

The Commission is proposing a new trade and investment strategy for the European Union: 'Trade for All. Towards a more responsible trade and investment policy.'

In this strategy, fair trade and other ethical strade schemes are promoted: "Promoting fair and ethical trade schemes reflects EU consumer demand and contributes to developing more sustainable trade opportunities for small producers in third countries. There is a lack of information today about access to fair trade schemes for both producers and EU consumers. The Commission has a role to play in facilitating this connection and in raising awareness on both the supply and the demand sides." (4.2.4, page 18)

"The Commission will: 

• use the existing structure for implementation of FTAs to promote fair trade and other sustainability assurance schemes, like the EU organic scheme; 

• address fair and ethical trade more systematically in the upcoming review of the EU ‘Aid for trade’ strategy and report on fair trade-related projects as part of its annual ‘Aid for trade’ report; 

• promote through the EU delegations and in cooperation with the High Representative, fair and ethical trade schemes to small producers in third countries, building on existing best practice initiatives; 

• step up support to work in international fora, such as the International Trade Centre, to gather market data in relation to fair and ethical trade markets, which could then serve as a basis to follow the evolution of the markets; and

• develop awareness-raising activities in the EU, in particular working with local authorities in the EU via the possible launch of an ‘EU City for Fair and Ethical Trade’ award.

“We thank Commissioner Malmström for the open dialogue with the Fair Trade movement and the various concrete initiatives in support of Fair Trade announced in the new EU Trade Strategy”, stated Sergi Corbalán, Executive Director of the Fair Trade Advocacy Office. "The Fair Trade movement warmly welcomes the new EC pro-active approach on Fair Trade and looks forward to working together with the European Union towards making all trade fair." 

The Communication will now be considered by Member States in the Council and by the European Parliament, as well as by the European Economic and Social Committee. The actions will be implemented over the course of the current Commission's mandate.

EU Policies on Fair Trade

"The European Union Institutions recognise Fair Trade as a useful tool for sustainable development and poverty alleviation."  

More info: Fair Trade Advocacy Office: EU Policies on Fair Trade

European Parliament hosts Fair Trade Breakfast on Public Procurement

On October 3, 2012, The European Parliament Fair Trade Working Group has successfully organised its annual Fair Trade Breakfast for the third time. Over breakfast, discussions have taken place on how the future European Union (EU) public procurement rules can empower public authorities to chose Fair Trade and ensuring access to the public EU procurement market for developing country producers.

The event has taken place in the context of the Fair Trade week in Belgium - an initiative of the Belgium Development Agency (BTC). The breakfast meeting has focused on the revision of the public procurement Directive and the initiative on the access of third country goods and services to the EU public procurement market. The event has been attended by Ambassadors from Fair Trade producing countries such as Bolivia, Colombia and Vietnam, as well as Members of the European Parliament (MEPs) from all political groups, representatives from the European Commission and the permanent representation of European Union Member States, as well as Fair Trade movement actors.

The breakfast has been hosted by Sirpa Pietikaïnen, member of the Fair Trade Working Group, a cross-party group of MEPs working together for EU policies in support of Fair Trade. While enjoying a Fair Trade breakfast, participants had the opportunity to listen to Bruce Crowther's experience as the founder of the Fair Trade Towns campaign. One of the main features of this campaign, which brings together over 1000 towns, is their commitment by these towns to purchase Fair Trade products.

A key issue in the debate has been the need for the future EU public procurement Directive, being currently revised, to provide a sound legal framework to introduce Fair Trade criteria, in line with a recent ruling by the European Court of Justice. Sergi Corbalán, Executive Director of the Fair Trade Advocacy Office stated “the future EU public procurement rules should not prevent public authorities from making the legitimate choice to require compliance with Fair Trade criteria”.

With regards to the access of third country goods to the EU public procurement market, “the overarching choice of contracting authorities to achieve best value for money should not be undermined” Sergi Corbalán concluded.

The European Parliament is a long-lasting supporter of EU policies in support of Fair Trade. In September 2011, the parliament passed a rresolution on a New Trade Policy for Europe under the Europe 2020 Strategy where it calls again for the ‘European Commission to ensure coordinated policies in support of Fair Trade. The President of the European Parliament, Mr. Martin Schulz, reiterated this support during this year’s World Fair Trade Day.

European Court confirms possibility to demand Fair Trade

On May 10, two days before World Fair Trade Day, the Court of Justice of the European Union provides much-needed legal clarification by confirming that Fair Trade criteria can be included in public procurement. This confirms the practice across the European Union by contracting authorities and cannot be ignored in the current revision of the EU Public Procurement Directive.

This decision puts an end to a dispute between the Dutch Government and the European Commission. In 2008 the Province of North Holland, published a tendering procedure for a public contract for the supply and management of automatic coffee machines, which referred to products bearing the EKO and Max Havelaar labels. The European Commission referred the Netherlands to the Court of Justice of the European Union in 2010 for non-compliance with the EU public procurement rules.

In its ruling, the Court clearly states that contracting authorities can chose award criteria based on considerations of an environmental or social nature. The Court also explicitly states it is possible to refer in award criteria “to the fact that a product is of fair trade origin”. Consequently, public authorities can give preference to a bidder who includes Fair Trade criteria.

The judgment also confirms that contracting authorities can refer to the environmental characteristics of Fair Trade (e.g. no pesticides, no Genetically Modified Organisms) as part of the technical specifications of a call for tenders.

Concerning the reference to labels, the Court considers that, by referring to a label without listing the underlying criteria of this label, the North-Holland Province did not comply with the provisions of the Directive . The Court is of the view that it is necessary to specify the underlying criteria of labels, such as Fair Trade labels. Labels are nevertheless considered by the Court as a valid means of proof of compliance with such criteria, provided that other means of proof are allowed.

Overall, the ruling is good news for the Fair Trade movement as it clarifies the inclusion of Fair Trade considerations all along the tendering process, under the current EU Public Procurement Directive.

Sergi Corbalán, Executive Director of the Fair Trade Advocacy Office stated “we welcome the confirmation by the European Court that Fair Trade criteria can be supported through public procurement under the current EU rules”.

This clarification is on time as the EU Public Procurement Directive is currently being revised at EU level. An important issue at stake is whether, in the future EU rules, technical specifications can refer to social aspects in production process “The European Parliament and Council of Ministers should ensure the future EU rules permit a distinction to be made in the technical specifications between products produced with or without, for example, forced child labour”, Corbalán said.

JUDGMENT OF THE COURT (Third Chamber) - 10 May 2012