Trade Should Be Based On Fair Labor Standards

Is Fair Trade Fair?

The U.S. is the world's largest consumer of chocolate and coffee. In 2000, the US imported 729,000
tons of cocoa beans, ate 3.3 billion pounds of chocolate and spent $13 billion on cocoa bean
products alone.1 The Ivory Coast is the world's largest cocoa producer, providing 43% of the
world's cocoa. Coffee is the second largest commodity in international commerce with a value of
$10 billion per year. Over 8 billion pounds of coffee is grown in 50 countries, providing jobs to more
than 20 million people. Although cocoa and coffee are largely produced in developing countries,
they are mostly consumed in industrialized countries. Illegal child labor is a major problem on both
cocoa and coffee farms in the Ivory Coast. While consumers in rich countries voraciously consume
their $3.00 latte at the local Starbucks, millions of farmers in developing countries are struggling to
survive. These farmers have not ever had the privilege to taste the fruit of their harvest: a Hershey
bar or Starbuck’s Frappuccino. While we take these things for granted so many farmers including
children, are being exploited under the auspice of ‘globalization,’ and we as consumers may be
partly to blame.

Statistics: Cote d’Ivoire

 Population: 20,617, 068

 Unemployment: 50%
 Agriculture Sector/Economy: 68%
 Labor Force: 7.34 Million
 Labor Force/Agriculture: 68%
 GDP: $34.12 billion U.S. Dollars
 GDP per capita: $1,700 USD
 Literacy: 48.7%
 Population Below Poverty Line: 42% (2006)
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/iv.htm

While the CEOs of these same companies are making millions farmers get barely 5 percent of the
profit from chocolate, while trading organizations and the chocolate industry receive about 70
percent. There seems to be something wrong with this equation. This disparity should cause us to
pause and reflect. Critics of free markets cite the coffee industry as a prime example of
globalization’s evils. The rich developed countries get richer while those at the bottom of the food
chain remain impoverished. Whether it’s coffee or chocolate the establishment of fair labor
standards and the means to enforce them has been a subject of great debate.

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A New Slavery

A number of chocolate and coffee companies use cocoa and coffee beans harvested by slave labor
and illegal child labor. The International Labor Organization (ILO) estimates that there are 250
million working children, 120 million of whom work full time. In agricultural communities children
must work to help their families survive. The 600,000 small farms in the Cote D’Ivoire, which
produce cocoa and coffee, account for almost half of the nation's entire economy. West African
cocoa beans are purchased and processed by chocolate manufacturers around the world. Among
the popular brands in the United States, Ben and Jerry's, Hershey's, Mars Confectionary, Nestle, and
Kraft all use cocoa from the Ivory Coast. . In 2001, the chocolate industry agreed to develop a
certification system to "identify and eliminate any usage of the worst forms of child labor in the
growing and processing of cocoa beans." voluntary industry-wide standards for anti-slavery
labeling on American chocolate and cocoa products. In developing countries child labor is not only
commonplace but it is a way of life. It is seen as a family rite of passage, a form of apprenticeship.
An estimated 120 million children between the ages of five and fourteen are employed in
developing countries Asia, Africa and Latin America. The US State Department's Human Rights
Report acknowledged that upwards of 15,000 children between the ages of 9 and 12 have been sold
into forced labor on plantations in the northern Ivory Coast in recent years. 3 They are often subject
to cruel conditions including long hours, little food, and physical abuse. It sure leaves behind a
bitter taste.

Overproduction and deregulation of the both the cocoa and coffee market has forced prices to
plunge. Cocoa prices dropped from $4.89 per pound in 1977 to today's price of 51 cents. Falling

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Is Fair Trade Fair?

prices have placed pressure on farmers to take desperate measures Multiple Indicator Cluster Surveys
(MICandDemographic and Health Surveys (DHS)

Coffee
Coffee experts in producing countries estimate that the amount of labor required to produce a
pound of coffee is 2.2 hours. Even at commodity price levels of $1, there is intense pressure to keep
costs low. Though coffee bean prices have plummeted to a historic low the price of a designer cup of
coffee continues to rise.http://ihscslnews.org/view_article.php?id=43

A Dark Side to The Chocolate Industry

An investigative report by the British Broadcasting Company (BBC) in 2000 indicated the scope of
the labor problem. According to the BBC, hundreds of thousands of children are being purchased or
even stolen and shipped to the Ivory Coast where they are sold as slaves to cocoa farms. These

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children typically come from countries such as Mali, Burkina Faso, and Togo. Destitute parents in
these poverty-stricken lands sell their children to traffickers believing that they will find honest
work once they arrive in Ivory Coast and then send some of their earnings home. But that's not
what happens. These children, usually 12-to-14-years-old but sometimes younger, are forced to do
hard manual labor 80 to 100 hours a week. They are paid nothing, are barely fed, are beaten
regularly, and are often viciously beaten if they try to escape. Most will never see their families
again
.Bitter Chocolate: The Dark Side Of The World's Most Seductive Sweet (Hardcover - 2008/04/01)
by Carol Off (Author)

Share of countries in total cocoa beans production (2005/06 crop year forecasts)

[Exhibit ] World production of cocoa beans, in thousand tons

Source: UNCTAD based on the data from International Cocoa Organization, quarterly bulletin of cocoa statistics

[Exhibit ] Supply and Demand: Cocoa

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Is Fair Trade Fair?

Source: UNCTAD based on the data from International Cocoa Organization, quarterly bulletin of cocoa statistics

Share of main consuming countries in (2004/05)

Source: UNCTAD based on the data from International Cocoa Organization, quarterly bulletin of cocoa statistics

Child Labor
According to the US Department of Labor, more children work in agriculture around the world
than any other economic sector. In the Central American coffee producing countries, recent
statistics show that 52% of Latin American inhabitants are under the age of 18. Children working
in the field face safety and health risks. Coffee picking is exhausting work. Long hours, hot
temperatures, overexposure to the sun and snakebites are a constant threat to the wellbeing of the
children. They are also exposed to dangerous chemical fertilizers and pesticides that have been
banned in the US. Child slaves have no rights, and are frequently subjected to brutal treatment and
sub-human living conditions. The term ‘child labor' is defined by the United States Department of
Labor as the employment of boys and girls when they are too young to work for hire; or when they
are employed at jobs unsuitable or unsafe for children of their ages. The adverse health and

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Is Fair Trade Fair?

developmental effects of this labor on children are well known and documented. The denial of
education to these children violates their most basic rights and also represents an enormous
economic and social loss, in terms of reduced economic potential to the countries in which these
children live. 

Most countries have laws against child labor; however, some governments support child labor
regardless of existing laws as a way of gaining a competitive market advantage. The use of child
labor can undermine these objectives by distorting labor markets, limiting the growth of human
capital, and negatively impacting society as a whole. Preventing children from working is not
necessarily the best solution; children may end up in worse situations subject to even more abuse.

In addition to poverty, several other factors exacerbate the problem of child labor: inadequate
government policy and enforcement, and lack of opportunities for education. When no alternative
is available parents are forced to pledge their children's labor as payment or collateral on a debt.
Parents assume their children will be able to repay the debt out of future earnings, but a
combination of low wages and high interest rates many times make repayment impossible. In
addition to compensation issues, the living conditions often include substandard hygienic
conditions, unsafe drinking water, unclean sanitary facilities, and medical facilities. Above all these
children do not attend school. Human rights groups are pressuring companies to pay workers a
livable wage. Human rights organizations celebrate the 50 th anniversary of the Universal
Declaration of Human Rights. This includes the right to a job, food, housing, healthcare and
education.

The root of the problem: A Viscous Cycle

Poverty is the root of the problem. This downward cycle is perpetuated by adults who, having
worked as children themselves, submit their own children to the same pattern. World Bank
poverty figures show that the number of people living in poverty (defined as those living on less
than $2 a day) has increased at the global level over the past fifteen years and is rising in most
developing regions of the world.
Trade alone will not alleviate poverty. Fair Trade helps to correct market imbalances by
guaranteeing a minimum price for small farmers' harvest, and encouraging organic and sustainable
cultivation practices. Fair Trade farmer cooperatives are assured a minimum price per pound. With
a fair and stable income, coffee growers are able to invest in their families' health care and
education. The Fair Trade system currently benefits 550,000 farming families in 20 countries.

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Is Fair Trade Fair?

Consumers can purchase Fair Trade coffee at approximately 7,000 retail locations in the
US.http://www.globalexchange.org/campaigns/econ101/laborday.html
The "fair trade" stamp means several things. First, it means that the farmers were paid a fair
price for their crops. Second, to be called fair trade, the farmers must work in conditions that are
"fair". This fairness includes the strict prohibition of child labor. It also means that working
conditions should be safe. Third, there should be direct trade between the farmers and the
companies, eliminating a costly middleman. The profits from fair trade products should be used to
strengthen communities with better education, access to healthcare, and a future.
The term fair trade refers to a model of international trade which promotes the payment of a fair
price and improves social and environmental conditions for producers of a wide variety of goods.
The movement focuses in particular on exports from developing countries to developed countries,
such as coffee, cocoa, sugar, tea, bananas, honey, cotton, wine and fresh fruit.

Social Movements
The concept of a Social Movement has been around since the 1970s, championed by charities like
Oxfam and Traidcraft and church groups like Christian Aid, which recognized the role consumers
can play in improving the lot of producers. By buying direct from farmers at higher prices,
marketing the produce directly through their own shops and catalogues, the charities offered
consumers the opportunity to buy fair trade. These charities were among the founding members of
the Fairtrade Foundation, (www.fairtrade.org.uk), itself a registered charity, in 1992. Today when
people talk about a Fairtrade product they're more than likely referring to one that has been
endorsed by the foundation. This endorsement allows producers, brand owners and distributors to
include the Fairtrade logo on products as an independent guarantee that disadvantaged producers
in the developing world are getting a better deal. TRADE? Caterer & Hotelkeeper February 21, 2008 170 of 1000
DOCUMENTS Caterer & Hotelkeeper
February 21, 2008

Conceptually present for at least 50 years in the U.S. and Europe, fair trade has gone through a
number of incarnations. Only in the last five or 10 years has it achieved mainstream success, thanks
largely to a concerted campaign by an international coalition of labeling and certifying
organizations. The basic mission statement of the fair-trade movement is that developing-world
producers who meet certain criteria should receive a "fair" wage for the fruits of their labor. To that
end, fair-trade organizations work to cut out middlemen, and establish cooperatives through which
developing-world producers can (in theory) exercise more autonomy and leverage more power in

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negotiations with developing countries consumers. Making this all possible is a labeling system by
which fair-trade products get a fair-trade certified logo, and consumers pay a modest premium.
In the absence of a governmental agency fair trade has been effectively governed by Fairtrade
Labeling Organizations International (FLO) association of 20 national labeling organizations around
the world. Organizations such as TransFair USA - the national labeling organization for North
America certify the actual buying and selling of fair-trade products, ensuring that fair-trade
standards are upheld at every link in the supply chain.
Concept of Linkage to Fair Trade
Should the rights to engage in international trade be made conditional on the promotion of labor
standards? Few programs exist to systematically help the poor end the cycle of poverty. The
concept of linking trade to fair labor is not a new one. Attempts to condition trade with protective
labor standards date back nearly a century. In 1905 the Berne Convention outlawed the production
or sale of matches made with white phosphorus because of its horrible crippling effects. In 1919,
Following World War I the western capitalist nations formed the International Labor Organization
to regulate the conditions of work internationally. Since then, 178 international conventions,
regulating everything from freedom of association to the rights of indigenous and migrant workers,
After World War II an effort was made to establish the International Trade Organization (ITO),
whose “members recognize that unfair labor conditions, particularly in production for export,
create difficulties in international trade.” This effort failed largely because of U.S. Senate resistance.
In its place world leaders established the Generalized Agreement on Tariffs and Trade (GATT),
which operates on the assumption “that a liberal world of self-adjusting free trade, freedom of
capital movements, and an efficient division of labor provides the natural and best economic order.”
This perspective has dominated international trade policy throughout the past half century. The
principles of free trade are codified in successive GATT agreements, most recently the Uruguay
Round in 1994, which established the World Trade Organization (WTO). Since the end of the cold
war, extreme ideological support for this “free market” approach has resurfaced with the
requirement of a social clause. To become Fair Trade certified, an importer must meet stringent
criteria; pay a minimum price per pound, provide credit to farmers, and technical assistance such as
help transitioning to organic farming. www.globalexchange.org/campaigns/fairtrade/coffee/ Trade and LaborVolume 2,
Number 15January 1997 Written by Pharis Harvey, Director of International Labor Rights Fund (ILRF).Editors: Tom Barry (IRC) and
Martha Honey (IPS) p. 8

There is no reason to think that trade liberalization in itself will alleviate poverty or lead to a
broad distribution of the gains. Empirical evidence suggests that such results are more the

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Is Fair Trade Fair?

exception than the rule. However, provisions can be written into trade agreements that promote
more favorable outcomes for income distribution and poverty alleviation.

Linking trade with domestic policies that promote poverty alleviation, more equitable income
distribution, and better working conditions can generate greater market access for developing
countries and at the same time disseminate the benefits of trade liberalization more broadly to
their citizens, creating a true win-win outcome. Polaski, Sandra, trade and Labor Standards: A Strategy for Developing
Countries Jan 2003 Reddy, Sanjay and Barry, Christian. Labor Standards and International Trade: A Propos

Fair trade organizations use five tools to promote its policy: (p. 3 International Trade Forum)

1. Price premiums. Fair trade products command a premium that is invested in the community
to improve working conditions.
2. Certification and labeling. Standards aim to improve product quality, working conditions,
environmental sustainability, business development and training.
3. Microcredit helps small-scale producers get started on fair trade projects.
4. Technical support includes business development, trade information, advice on quality
standards, training in new techniques, etc.
5. Advocacy is an important element in fair trade marketing, with the branding and fair trade
message found on virtually every package. But not only the fair trade organizations benefit.
Supermarkets find the fair trade label useful for marketing to niche consumers who are
willing to pay extra for coffee that guarantees producers a fair price

Government: Absent or Abuse

The role of the government varies from country to country. Labor standards are often absent or
altogether unenforced; in many countries government policies simply ignore the plight of children.
While laws may exist, the lack of surveillance, enforcement, and intervention on the part of
governments allows child labor to continue. When violators are caught and prosecuted, penalties
are too small to affect the employer's practices. Child slave labor continues also because of social
acceptance in certain areas. When national laws aren’t able to protect children there is a growing
need for an international agency to institute and impose standards.
ILO’s seven core labour standards have thus become a benchmark for fundamental labor rights.
(ILO, 2000h.)
Standards Initiation p 79-80 Source: ILO (2000i) ILOLEX: the ILO’s database on International
Labour Standards, ILO.
Core Labor Rights
1) Freedom of Association
2) Collective bargaining
3) Elimination of forced labor

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4) Nondiscrimination
5) Removal of children from workplace
6) Minimum wages and hours
7) Occupational safety
g.Sandra Polaski TRADE, EQUITY, STRATEGY FOR DEVELOPING COUNTRIES
www.carnegieendowment.org. p 5

Challenges
A major challenge is whether global standards compound the ‘downward spiral’ of the poor, or
actually improve working conditions. Trade has widened the gap between the rich and poor,
deepening impoverishment and oppression. Given the variations across countries and cultures,
there is no “one size fits all” approach to tackling labor issues. Companies should adhere to national
and local laws in the country of operation. Source 2, p 1 Since there is no analogous world
government with the power to enforce such rules internationally, the onus is on the importing
country to mandate compliance with labor standards as a condition of trade. Child Labor In the
Workplace and Supply Chain p 1
A fundamental challenge facing policymakers and activists is how to set and enforce these
standards to protect workers from repression, exploitation, and danger. Weak and inconsistent
enforcement continues to be a problem. Global institutions such as the International Labor
Organization (ILO) lack the power to enforce standards. Another argument against fair trade is that
the imposition of standards increases the cost for the developing country’s firms and consumers.
This cost is offset by the benefit. Corporations are in the best position to absorb the extra costs, by
lowering their profit margin or raising the ceiling on the prices of these commodities.
Can Developing Countries Afford to Ban or Regulate Child Labor?
By Mark Weisbrot, Robert Naiman, and Natalia Rudiak1 p 4
There is an alternative approach to linkage, which would provide an attractive means of
furthering the interests of poorer countries. This alternative would extend the transparent, rule-
based approach of the WTO system to include an appropriate concern for labor standards (thereby
excluding opportunistic actions by wealthy importing countries). It would require that poorer
countries undertake only those efforts to promote labor standards that are reasonable to expect in
light of their circumstances; while also ensuring that these countries gain by providing them with
additional access to northern markets and other forms of reward for their efforts."International
Trade and Labor Standards: A Proposal for Linkage

Christian Barry and Sanjay Reddy

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the appropriate level of labor standards in each country depends on its level of development. An
improved world trading system would require each country to promote labor standards only to the
extent that is realistic and reasonable, given the country's level of development and social
conditions, and would reward efforts rather than outcomes.

Enforcement

Ratcheting Labor Standards

A new kind of labor regulation, a public ranking system, Ratcheting Labor Standards,relies on
information, competition, and the participation of not only regulators and firms, but also workers,
consumers, journalists, investors, NGOs, and the public at large. RLS promises labor standards that
are feasible based on actual practice, taking into account differences in contexts of economic
development. These labor standards join the disciplinary forces of social pressure and market
competition. They aim not at establishing standard rights, but rather at creating a process that
makes workplaces as good as they can be, and better over time, as companies become more capable
and nations more developed. The challenges are four-fold: in setting standards, in monitoring
compliance, in providing assistance on achieving compliance, and in sanctions on non-compliance.
IDSPolicy Briefing May 2003 P. 2 RealizingRatcheting Labor Standards addresses these obstacles
systematically. Activists have recently begun to demand that multinational producers disclose the
locations of their production facilities and those of their suppliers to establish whether companies
are complying with their stated codes of conduct.

RLS would do two things. First, it would use monitoring and public disclosure of working
conditions to create official, social, and financial incentives for firms to monitor and improve their
own factories and those of their suppliers. Second, it would create an easily accessible pool of
information with which the best practices of leading firms could be publicly identified, compared,
and diffused to others in comparable settings. We argue that the combination of firm-level
incentives and an infrastructure for pooling results would help to set provisional minimum
standards of corporate behavior, upon which competition—driven by social and regulatory
pressures—would generate improvements that then "ratchet" standards upward. Realizing Labor
Standards p 2
Labelling Organizations

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Labelling organizations may cut out middle men, but they may not return the full savings
back to the farmers. Creating Opportunities for Economically Disadvantaged
1. Transparency and Accountability
2. Socially Responsible Trading Practices
3. Payment of a Fair Price
4. No forced or Child Labor
5. No Dscrimination,
6. Safe and Worki Conditions
7. Positive Development impact
8. Promote Fair Tade
9. Environmentally Conscious Sustainable Sources

For a product to display the FAIRTRADE logo, it must meet standards set by the Fairtrade
Labelling Organization International (FLO). The Fair Trade certification guarantees a minimum
price and insures that no child or forced labor is used.

Recommendations

The important first steps toward the establishment of a positive policy linking labor to trade have
been taken. What is needed now is to strengthen both unilateral and multilateral measures so that
existing laws form the base for more substantive reform and in that way the legitimate linkage of
labor market conditions to trade rules will be more broadly recognized and accepted within the
government’s trade-policy apparatus. This can be accomplished through the following policy
changes:

Reform the GSP law to reduce the distorting effects of extraneous political, nonlabor-related issues.
This can be done by giving the interagency GSP committee power to decide—not just to
recommend—measures to the president. Restructure the North American Agreement on Labor
Cooperation (NAFTA Labor Side Agreement) to simplify the complaint process and broaden the
issues that can result in trade remedies or fines. Now, only child labor, minimum-wage
nonenforcement, and health and safety concerns can lead to any punitive action. What is needed
now is to strengthen both unilateral and multilateral measures so that the existing laws form the
base for more substantive reform.The U.S. should reform the GSP Law to reduce the distorting
effects of extraneous political, non-labor-related issues. The U.S. should introduce the labor-trade
linkage in other regional negotiations, such as in Asia Pacific Economic Cooperation (APEC) and the
Free Trade Area of the Americas (FTAA). The failure of any nation to adopt humane conditions of

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labor is an obstacle in the way of other nations which desire to improve the conditions in their own
countries.-Versailles Treaty, 1918 Introduce the labor-trade linkage in other regional negotiations,
such as the Asia Pacific Economic Cooperation (APEC) and the Free Trade Area of the Americas
(FTAA). The U.S. has limited its consideration of labor-trade linkage to the WTO, but in Asia, the
region of greatest resistance, the U.S. has remained silent. Nor has it insisted on labor
representation in regional trade talks to parallel and balance the representation of business. Labor
belongs at the table, not just serving it.
Strengthen U.S. credibility on trade-labor linkage by ratifying basic ILO human rights conventions
on freedom of association (No. 87), collective bargaining (No. 98), forced labor (No. 29),
discrimination (No. 111), and child labor (No. 138). Pass a law limiting imports of goods produced
by child labor. The Harkin bill, which has been waiting for administration support since 1989,
would do this. Strengthen enforcement of the 1930 law prohibiting import of forced-labor
produced goods and ban the export or commercial sale of U.S. prison-made products.Instruct U.S.
executive directors at the World Bank and other international financial institutions to advocate
rigorously policies that support labor rights—both by voice and vote. Establish a WTO working
group on trade-labor linkage. If this does not happen at the ministerial meeting in December 1996
in Singapore, the U.S. should take the lead to establish an informal working group of leading
countries on both sides of the issue to reach mutual understanding in preparation for next
ministerial meeting in 1998.Put a labor-rights code in U.S. federal procurements contracts for both
domestic and international purchases. Support development assistance that helps countries draw
workers from the informal into the formal sectors of their economies. At the same time, the U.S.
should oppose structural adjustment programs that drive workers into poverty and joblessness and
that place the burden of change on the most vulnerable. These steps, many of which are available to
the administration without congressional action, will signal to our trading partners that the U.S.
intends to keep this issue on the table.Solutions RLS would do two things. 1) use monitoring and
public disclosure of working conditions to create official, social, and financial incentives for firms to
monitor and make improvements; 2) it would create an easily accessible pool of information with
which the best practices of f;eading firms could be publicly identified, compared, and diffused to
others in comparable settings. We argue that the combination of incentives and infrastructure
would help to set standards of corporate behavior, The struggle to eliminate forced labor in the
form of slavery—was won only a century ago. That struggle was waged on moral, economic, and
development grounds, just as the debate over core labor standards is carried on today. P 19
Carnegie endowmentpetuates this poverty to subsequent generations. The solution for countries

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interested in develop- ment is to find a way to intervene to break this cycle of povertIt is
cooperative also receives a set amount of money, called the social premium, which is invested in
community development projects democratically chosen by the cooperative. Examples of projects
funded through Fair Trade include the building of health care clinics and schools, starting
scholarship funds, building housing and providing leadership training and women's empowerment
programs.

Counterargument

Can the world trading system be designed to promoting labor standards? While some support the
abolition of all forms of child labor, others argue that its abolition is unrealistic and contrary to the
interests of the children themselves. Such advocates emphasize that the issue of child labor must be
analyzed within the broader context of social, economic and educational progress in the developing
world.. Government sanctions, such as the U.S. Congress' denial of trade benefits to developing
countries that do not comply with child labor laws, will not end child labor. Conversely, resisting a
trade–labor linkage has been a lose–lose strategy for developing countries. When they refuse in
trade negotiations to agree to enforce their own labor laws and protect the most basic worker
rights, they reinforce the perception that they do not intend to compete on comparative advantage
but rather by allowing abuse of workers at levels of exploitation that are unacceptable to the
international community. U.S. chocolate manufacturers have claimed they are not responsible for
the conditions on cocoa plantations since they don't own them. They need to assume accountability
for their role. to raise labor costs and thereby cause a diversion of trade and investment toward
countries with lower standards.

The justification for linkage hinges on the issue of human rights. If the global community is to
enforce standards they need to be empowered to do so; trade sanctions serve this purpose.
Opponents to linking trade and standards argue that protectionists would use the process to
inappropriately restrict trade. There may be some basis for this view. Likewise, it must be
recognized that trade sanctions may actually harm many of the workers in the developing nations
that they are designed to aid by raising production costs, causing the loss of the competitive edge.
Better prices for farmers do not increase consumer costs, since the fair trade organizations cut out
intermediaries by handling all the operations between production and retailing themselves.

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􏰀 􏰀 http://www.tradeforum.org/news/fullstory.php/aid/1031/Fair_T

Knowledge is Power

Shareholders call upon Hershey's management to divulge the company's cocoa supply sources. The
resolution, which was introduced by the human rights group Global Exchange, aims to determine
whether Hershey is purchasing cocoa from farms that use forced labor. At risk of adverse publicity
Hershey has simply refused to divulge the source of its cocoa, which in and of itself is quite telling.
There is a growing need to empower consumers with knowledge. Critics argue this isn’t enough.
The US chocolate industry agreed to work toward ending illegal child labor on cocoa farms through
a voluntary protocol called the Harkin-Engel Protocol. But that protocol expired on July 1, 2005,
and the industry failed to come up with a system for monitoring and certifying that US chocolate
products aren't made using forced child labor.
Fair Labor is a Consumer Driven Phenomenon
Companies look upon the concept of fair treat as a niche market, for its snob appeal, differentiating
and branding their products ‘Fair Trade’ just to gain a competitive edge. Fair trade is an expensive
niche market to maintain, because it needs constant promotion and requires educated consumers.
High marketing costs are one reason why the fair trade premiums don’t make it back to the
producers.

Campaign to Raise Awareness

The power of the consumer cannot be underestimated. REALIZING LABOR STANDARDS p. 8
Exchange is an international human rights organization dedicated to promoting social, economic,
political and environmental justice around the world. Described as "the group that helped put labor
rights on the human rights agenda" (Washington Post), and "angry and effective" (The Economist),
Global Exchange is working for a global economy that puts people and the environment before
corporate profits.

Conclusion
Globalization has proven to be a virtual race to the bottom, the bottom line, where price is far more
important than people. Unfortunately child labor is not likely to disappear any time soon. Children
are going to work as long as poverty persists. Fair Trade offers farmers a chance for survival. The
Fair Trade Certified production criteria guarantee a minimum price and insure that no child or
forced labor is used. By ensuring an education for all we would put an end to the cycle. Perhaps

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our vices of chocolate and coffee would cost us an additional dime. Charging an extra ten cents gave
a misleading impression of how much it really cost to get hold of that fair trade coffee.” Doubling a
producer’s family income should add less than one penny to the price of a cup. International Trade
Forum p. 2 This is a small price to pay to make a difference.

______________________________________________________

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Sources

Global Exchange (www.globalexchange.org)

The Child Labor Coalition (www.stopchildlabor.org)
Anti-Slavery (www.antislavery.org)
Unfair Trade (www.unfairtrade.co.uk)
Fair Trade (www.fairtrade.org/html/english.html)
Abolish: The Anti-Slavery Portal (www.iabolish.com)
For information on specific chocolate companies, see www.radicalthought.org
Kevin Bales' book Disposable People (University of California Press, 2000) is a thoroughly
researched expose of modern day slavery.

 http://www.associatedcontent.com/article/1637122/chocolate_slavery_and_buying
_fair_trade.html?cat=22
Robbins, John. Is There Slavery In Your Chocolate?

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Endnotes
1
http://www.globalexchange.org/campaigns/fairtrade/cocoa/background.html
2
http://ihscslnews.org/view_article.php?id=43

3
Chocolate Slavery and Buying Fair Trade Chocolate April 16, 2009 byJennifer Budd

4
Good Practice Note In the Workplace and Supply ChainAddressing Child Labor , p. 13.

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