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The Fairtrade Foundation is deeply concerned about the impact the latest historic banana trade deal will have on the small-scale, family owned, banana farms of the Windward Islands.

Renwick Rose, the leader of the Windward Islands Farmers Association (WINFA), describes the deal as: ‘yet another disastrous blow, not just for the banana industry in the islands, but for economic and social development of the islands in general.’

After decades of wrangling, this banana trade deal was signed between the EU, Latin America, African-Caribbean-Pacific (ACP) countries and the US at the World Trade Organisation (WTO) Council Secretariat in Geneva yesterday. The deal will see a significant reduction in the trade preferences historically provided to ACP countries by the EU. This is linked to a financial aid package for affected ACP countries aimed at improving competitiveness, economic diversification and mitigating the social consequences of adjustment, but it is unclear to what extent this package can make a real difference in the case of the Windwards.

The banana industry in the Windward Islands is deeply integrated into the culture, society and real economy of the islands. Bananas are grown on small, family owned farms, and marketed through a co-operative structure, so the vast majority of the financial benefits are captured and spent at a local level.

Toby Quantrill, Head of Public Policy at the Fairtrade Foundation said: ‘These farmers are likely to be the major losers in this deal and it is unclear how much of the aid package will be made available for the Windward Islands.

He continued: ‘In the real world, it is hard to foresee how the social and economic benefits provided by banana farming can be easily replaced, or how these small, mountainous islands can be expected to identify alternative sectors in which they can become instantly competitive.’

The banana industry in the Windward Islands has already seen a severe decline since a previous reduction of preferences in 2006.  According to Renwick Rose, Fairtrade has been the saving grace until now. 85% of the surviving banana farmers in the Windward Islands produce Fairtrade certified bananas. However this new deal, coupled with the ongoing retail price war on bananas in the UK means that these farmers face the prospect of being squeezed out of the market altogether in the ever accelerating race to the bottom in the global banana trade.
The deal demonstrates that the principles embodied in WTO rules fail to take full account of the specific vulnerabilities of particular countries, or of the social and environmental impacts of different types of production.

Reports from Geneva talk of celebrations as the deal was signed. It is unlikely that the banana farmers in the Windward Islands will be sharing the festivities.

The Fairtrade Foundation is calling on consumers to continue to buy their Fairtrade bananas from the Windwards, recognizing their full social and economic unique value.

 

1. The FAIRTRADE Mark is a certification mark and a registered trademark of Fairtrade Labelling Organisations International (FLO) of which the Fairtrade Foundation is the UK member. The Fairtrade Foundation is an independent certification body which licenses the use of the FAIRTRADE Mark on products which meet international Fairtrade standards. This independent consumer label is now recognised by 72% of UK consumers and appears on products as a guarantee that disadvantaged producers are getting a better deal. Today, more than 7.5 million people – farmers, workers and their families – across 58 developing countries benefit from the international Fairtrade system.

2. Over 4,500 products have been licensed to carry the FAIRTRADE Mark including coffee, tea, herbal teas, chocolate, cocoa, sugar, bananas, grapes, pineapples, mangoes, avocados, apples, pears, plums, grapefruit, lemons, oranges, satsumas, clementines, mandarins, lychees, coconuts, dried fruit, juices, smoothies, biscuits, cakes & snacks, honey, jams & preserves, chutney & sauces, rice, quinoa, herbs &  spices, seeds, nuts & nut oil, wines, beers, rum, confectionary, muesli, cereal bars, yoghurt, ice-cream, flowers, sports balls, sugar body scrub and cotton products including clothing, homeware, cloth toys, cotton wool and olive oil.

3.7 in 10 households purchase Fairtrade goods, including an extra 1.3 million more households in 2008, helping Fairtrade sales reach an estimated £700m in 2008, a 43% increase on the previous year. There are over 460 producer organisations selling to the UK and by the end of October 2008 872 certified producer groups were in the global Fairtrade system, representing more than 1.5 million farmers and workers.