About Sustainable Trade

Illustrating "Sustainable Trade"
The term "sustainable trade" can be used to reference the full range of economic and environmentally sustainable production across the developing world. It can be applied to both commodity and other types of sustainable production such as handicrafts and textiles. The following are some examples of current programs and certification schemes:

• Fairtrade certified production (FLO, WFTO)
• Rainforest Alliance certified production
• Utz Certified production
• Organic certified production (various labelling programs)
• Forest Stewardship Council (FSC)
• Marine Stewardship Council (MSC)

Sustainable Trade Industry Growth
Global markets for certified sustainable natural products have grown significantly in recent years. This growth has occurred in step with the evolution of new enterprise activities that integrate international trade, community-based development, and responsible natural resource management. In North America and Europe, a growing number of socially-driven companies serve as vehicles to support sustainable agriculture and other eco-friendly production activities, especially in Latin America and East Africa. They source goods directly from rural co-operatives producing coffee, cocoa, tea, fruits and spices organically grown in a rich and diverse  environment. These buyers increase small producers' incomes by offering secure markets, price protection, and technical assistance to enhance local productivity and competitiveness.

The organic agricultural product market, for instance, allows small holdings farmers to compete internationally on terms other than price, while at the same time helping to preserve endangered habitats. Focusing on this kind of market represents a sustainable long-term strategy given that sales of organic products globally are growing at an average of 25% per annum and show no signs of slowing. Likewise, rising demand for specialty coffee, cocoa and other products represents a unique opportunity to harness market forces to foster grassroots development and environmental conservation. The number of specialty coffee importers, roasters and retailers involved in sustainable coffee has grown dramatically following the successes of industry pioneers such as Equal Exchange, CafeDirect and Green Mountain Coffee Roasters, the active organizing and advocacy efforts of organizations such as the Fairtrade Labeling Organization and their associated National Initiatives.

Growth of Sustainable Practices

Parallel to the growth of niche markets for sustainable products, there has also been growing interest among mainstream players for the implementation of sustainable practices within non-specialty agricultural trade channels. Work by the Sustainable Agriculture Initiative Platform, Common Code for the Coffee Community, Utz Certified, Eurepgap, Rainforest Alliance, and many more is indicative of a growing trend among mainstream companies to apply sustainability standards as conditions to market entry.

Although markets for sustainable practices in mainstream channels may not hold the same potential for generating premiums as their corresponding niche programs, they do hold the promise of improving farm practice management, information flow along the supply chain and stability of trade relations. All of which are key factors for producers dealing with mainstream markets. Perhaps most importantly, however, is the eventual role of compliance with sustainability standards in determining mainstream market access. As such, compliance with such systems can be expected to be a key component of the long-term commercial sustainability of even producers dependent on mainstream markets for their survival.