To what extent is fair trade a priority for DG Trade? What does DG Trade do to advance it?
We have been looking at this issue to see what can be done from the trade side. The real issue for fair trade is getting more demand but trade rules might help a little bit in creating demand or improving the competitive position of a product. We are looking at certain issues, such as the possibility to give trade preferences or, on the defensive side, whether we are running into problems with the Fair trade labels. At Cancun, what we need to do more than anything else is build awareness. We want to do a whole day on sustainable trade, which will include something on fair trade. The Commission will go on record that we support these initiatives and we are trying to find ways in the world trading system to ensure that fair trade products remain competitive and that they are not being attacked under WTO rules.
The other issue is much more an internal issue: what more could the EU do internally to give more status to these labels and to ensure that once a product has such a label, it gets preferential or better treatment. That is something DG Trade cannot do alone because it will affect the Internal Market rules and, as you know, we deal with third country relations. But as my colleagues from DG Employment and DG Development have said, this is something that has also appeared on their radar screen. So there is certainly serious work going on within the Commission on this issue.
Is the Commission planning new legislation in this area?
It is a bit early to say whether there would be legislation on this. We have various instruments but we will have to see whether we can get a better standing for or give more recognition to these labels. How we would do that legislatively that I do not know as I am not an expert on internal labelling rule-making but in a couple of months we might have a much clearer answer on that.
How do other major players in the WTO, such as the U.S. and Japan, approach fair trade?
The Americans haven't been vocal on fair trade in the WTO. Their focus is on market access for the classical environmental goods such as cleanup technology, water purification, but much less something like fair trade. They also tend to be hesitant to clarify further what labelling rules should and should not be able to do in the WTO because their main concern is that if we start such a discussion there might actually be more constraints than we have now, not more security. We believe that's not the right interpretation.
The Japanese have a big interest, particularly in fish, but how exactly that should be addressed is a big issue in the WTO. The Japanese themselves believe their sustainability objectives relating to fish management, can be better pursued in forums other than the WTO, such as the FAO. They have not been very vocal on fair trade as a tool in the trade context.
Could you please explain the role of Sustainable Trade and Innovation Centres, whose launch was announced a few months ago?
This is basically a private initiative which we support, and on which more information is available on the European Partners for the Environment (EPE) website. Their idea is to bring together more producers in the South and more consumers in the North and they want to be a platform where the two sides meet. They do awareness building, create contacts, focus on specific products, such as textiles, and bring together buyers and suppliers. It's an initiative where public support and private enterprise come together.
Based on your personal encounters with local experts, how important is fair trade for the EU accession countries?
They're getting interested, let's put it that way. I am sure that civil society is also very concerned about some of these issu es. I don't think fair trade is a big issue in these countries yet from what I've seen but that can change rather quickly. They are very interested in the WTO negotiations as far as trade and the environment goes, which is the subset of these issues. They actively participate in the internal preparatory meetings which we organise for the acceding countries to help them better cope with the negotiation items in the WTO.
Rupert Schlegelmilch is Head of Unit responsible for sustainable development and dialogue with civil society in DG Trade of the European Commission.
