26 June 2008

BEIRUT: Companies and co-operatives in Lebanon seeking to sell their products abroad under the Fairtrade certified label are debating how that certification process should work. The choice is between paying the high costs for international certification or attempting to build a domestic certification process for a much lower cost.

The Fairtrade movement began in the West in the late 1970's as a way to ensure that farming cooperatives in developing countries get fair prices for their products.

As the movement grew, Fairtrade certification became a ticket to upscale markets and started to attract non-cooperative businesses. Enterprises not owned by the workers were also subject to labor and environmental standards to ensure that workers were properly paid and that no pesticides were used, etc.

Fairtrade Labeling Organizations (FLO) International is the only internationally recognized body for certifying companies. However, the costs for becoming Fairtrade certified by the FLO can be extremely high, especially for small Lebanese businesses.

In order to gain access to the Fairtrade market, but at the same time avoid some of the costs involved in doing so, smaller and more local organizations popped up to certify companies and find partners in Europe to buy those products.

Yet the Fairtrade movement's primary concern is making trade with developed countries fair for entrepreneurs from undeveloped countries, and some believe that non-FLO certifiers like Fairtrade-Lebanon, El Puente, or Claro Fair Trade do not share the same interests.

Political science professor Eugene Sensenig-Dabbous, who teaches at Notre Dame University and is actively involved in the debate, said that the phenomenon of by-passing FLO certification was a "selling gimmick" in most cases.

He admitted that some of these certifiers like Fairtrade-Lebanon are truly concerned with protecting workers' rights and ensuring quality products, but added that some of the organizations exist simply to create the illusion that a certain company meets standards.

Sensenig-Dabbous added that the entire Middle East and North Africa (MENA) region does not have a single FLO-certified business.

The costs of getting a business certified by the FLO are enormous. A 20-member co-operative would have to pay around 2,250 euros ($3,503) to become certified, which is in many cases simply too high.

In addition, the FLO has a very narrow list of products it is willing to certify, because when the organization was launched, it only certified products from places like sub-Saharan Africa and Latin America. Getting a new product added to the FLO's narrow list of products it certifies can cost as much as 100,000 euros.

Under these circumstances, producers turn to local certifiers.

"They simply aren't held to real Fairtrade standards with most of these local Faitrade certifiers," said Sensenig-Dabbous.

He added that the producers also end up limiting their market size, since only a limited number of European firms will accept their products.

Hassan Machlab, the project manager for a United Nations Development Program project in the Lebanese Agriculture Ministry, said there is nothing wrong with the idea of regional, national or local certifiers.

"The idea itself is fine," said Machlab. "But the standards have to be high and comparable to the FLO, which will be difficult to ensure. In a way, it makes little sense to talk about Fairtrade in Lebanon when labor standards are so low."

Sensenig-Dabbous holds similar sentiments. "Labor laws in Lebanon are poor to begin with, and on top of that they aren't enforced," he said.

Sensenig-Dabbous suggested that if European NGOs and governments provided support, the problem could solve itself. "If European governments and organizations with the money paid these fees, we could see this section of the economy prosper. Once one Lebanese company or co-operative had FLO certification they would have an edge and would likely drive their competitors to do the same," he argued.

© Copyright The Daily Star 2008.

 

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