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| Title | Trade Policy Expert - Fair Trade labelling |
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| Description |
The use of labels (i.e. labeling products according to environmental & social criteria) by governments, industry and non-governmental organizations (NGOs) is increasing. Environmental and Social labeling schemes are complex but have the potentials to enhance market access and add value to developing country exports. WTO members generally agree that labeling schemes can be economically efficient and useful for informing consumers, and tend to restrict trade less than other methods. The EC Communication, (COM (2009) 215 final) to the Council and European Parliament[1] emphasized the role Fair Trade and non-governmental trade-related sustainability assurance schemes can play in Sustainable Development. Fairtrade schemes have accelerated in Europe in recent years. In 2006, Marks and Spencer in the UK announced a major commitment to ethical and sustainable sourcing to include Fairtrade cotton goods, 100% Fairtrade tea and coffee and sustainable marine and forestry sourcing. This was followed by both Sainsbury and the Co-operative moving to 100% Fairtrade sourced own label bananas in 2007 and commitments to 100% Fairtrade Tea, Coffee and Cocoa. The ACP Rice Export market is another ACP agro-sector undergoing Reforms which could benefit from opportunities provided by Fair-Trade. Guyana and Suriname are the only two significant rice exporters within the ACP group. The contribution of the rice sector to these countries economic performance is very significant and contributes directly to the livelihood of around 85,000 farming families and a further 80,000 in support/processing services. Their exports are primarily oriented towards the EU and CARICOM Region. For Suriname the EU market represents between 50-70% of its exports, as compared to between 50-60% in the case of Guyana. Rice exporters from these countries now face increased competition on the EU market arising in part from imports from non-ACP countries due to the liberalization of EU Agriculture markets. Reform of the EU’s internal rice market has also led to price decreases in the market and has resulted in a reduction of income earned from rice exports for Guyana and Suriname. In many other regions it is becoming increasingly difficult, if not completely impossible, to sell domestic rice at sustainable prices. Due to trade liberalization policies negotiated in the framework of the WTO and the end of the EU-ACP Commodity Protocol, subsidized rice from highly efficient producer countries such as the US or Japan can enter the traditional markets of Caribbean rice producers at prices below the production costs. In other words, subsidized rice is dumped onto the international markets. Fair-trade Standards can open up new markets for the benefit of small farmers by offering better trading conditions to and securing the rights of disadvantaged producers and workers. The action will increase-the competitiveness and long-term sustainability of the rice sectors of Guyana and Suriname. To realize this goal the Caribbean Rice Association seeks to identify Certification Compliance requirements towards the introduction of a Fair-Trade Label for the exports of Rice from the Region. This will enhance the competitive position of the sector, develop and improve productivity and promote Fair Trade Standards in the Rice Industry.
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