Forgot your password?
IFAT's Standard: Grassroots Alternative?
IFAT believes that “a modern, voluntary, worldwide standard is needed to identify and define the rules of Fair Trade.” In August 2008, IFAT announced a new certification process (SFTMS) that is expected to help FTO’s differentiate themselves further from conventional buyers and sellers by providing the “seel” for corporate social responsibility. They’ve posted a series of notes and explanations on their website and have invited the public to comment on the Standard’s draft.
In order for organizations to maintain membership in IFAT, they undergo a three-step monitoring process which includes (1) self-assessment against the Standards for Fair Trade Organizations (which would occur ever two years and include all stakeholders of the FTO) (2) peer review between trading partners and (3) external verification (every year, a percentage of members would be chosen at random to be assessed by an external inspector). Under the current system, organizations may use the IFAT logo on promotional materials, but not on the product itself.
The new system, Sustainable Fair Trade Management System (SFTMS), would allow for the IFAT logo to be used on products as well. The SFTMS is particularly attractive to businesses competing in a more globalized (i.e. standardized) world. It is also expected to support producers' need to differentiate their products in a competitive marketplace, where “mainstream” and Fair Trade companies are increasingly bumping into each other on the store shelf.
The SFTMS is expected to highlight the difference between a "Fair Trade offering" of products by commercial companies and a "Fair Trade production system" offered via an inter-connected network of Fair Trade companies. The vocabulary of the proposition sounds familiar to Fair Trade pundits: “market access for marginalized producers,” “sustainable and equitable relationships,” “capacity building and empowerment for producers,” “transparency and accountability,” and finally,“environmental sustainability.” The Standard is applicable to any organization whose principles and practices reflect those essential Fair Trade tenets and responsibilities traded via the IFAT chain of custody. After an independent third party audits and validates a published report of the organization, the product sold may carry a label indicating its approval.
But the SFTMS proposal still faces several challenges, not the least of which is how this system will prove to be different from existing labels - for example the FLO label - and how it can be effective, without being cost prohibitive. IFAT’s aspirations are noble. And a widely recognized label to differentiate products produced and sold via a dedicated Fair Trade chain is sorely needed in today's Fair Trade marketplace. But the implementation remains daunting.
 | The good news is that IFAT is already comprised of membership filling each step along the production to market path. And with two-thirds of their membership being producer groups and organizations, listening to and heeding the voice of the farmer or crafts producers is core to what sets IFAT apart. If IFAT can maintain their strong producer representation throughout the certification process, it will safeguard the endeavor from the two primary drawbacks of other certification systems - overly complicated criteria, lending itself to bureaucracy; and expensive fees structures, lending itself to excluding the most marginalized producer groups and family businesses. |
The other alarming issue is the lack of clarity – despite the obvious need for clarification – when it comes to the financing and actual implementation of the project on the part of the nebulous “Third Party.” The SFTMS draft speaks mainly of the responsibilities of the organization, staying consistent with their principle of self-assessment and internal auditing. But the question of finances, of who will serve as the independent third party, and of other nitty-gritty logistics have yet to be discussed in their 11-page proposal draft.
IFAT has invited producers, traders, retailers, NGOs, consumers and anyone else to provide their feedback. So don't be shy to share your opinion on the draft. The only “catch” is that you have to fill out their application form to determine - rightly so - whether or not you qualify to do so.
