Ghent's fair trade programme earns recognition, sets standard: Why making equitable commerce viable is a policy choice for the winner of the first EU Cities for Fair and Ethical Trade Award.

• Author: Michiels, Els
• Position: SPECIAL REPORT

Cities are home to half of the world's population and 80% of global economic output. As their influence on the global economy expands, so does their impact on economic development and social and environmental sustainability. Trade is a means of creating unique and - if done right - sustainable opportunities. Actions that city governments take are vital in determining the effects trade will have on global consumption and production.

As part of its 2015 Trade for All trade and investment policy, the European Commission launched the European Union (EU) Cities for Fair and Ethical Trade Award. The aim was to raise awareness about fair, ethical and sustainable trade schemes at EU level in collaboration with local authorities and other stakeholders.

On 27 June the Belgian city of Ghent walked away with a stylish trophy and financial support valued at 100,000 ($134,000) from the Commission for a Ghent - and the International Trade Centre (ITC) - led fair and ethical trade project in the global South. Ghent not only sets the standard through a profound procurement policy, it also creates a climate in which entrepreneurs, knowledge institutions and civil organizations invest in fair trade.

SUSTAINABLE PROCUREMENT

The structural integration of fair and ethical trade into the city's procurement policy is deeply rooted. A key step was taken with a master project on sustainable procurement in 2008, when the procurement policy was raised to a strategic level. From then onwards purchasing power contributed to the achievement of strategic goals. The choices made resulted in a sustainable policy based on seven goals including the minimization of the ecological footprint throughout the entire lifecycle; and the integration and guarantee of international labour standards and fair trade principles throughout the supply chain.

However, Ghent does not only want to purchase in a sustainable manner. It also strives to impact the market positively. The purchasing power of public buyers provides strong leverage here. Therefore, Ghent joined an EU-funded programme to boost the sustainability of workwear contracts. The priority was on ethical standards and the principles of fair trade in the production of raw materials and in the manufacturing phase.

The final step was a pilot purchase by the city where the supplier signed a legally binding contract, in which it committed to working transparently and continuously improving compliance with labour rights, human rights...