By Kenzie Love
The Trump administration’s recent actions on international trade have destabilized the global economy, and co-ops have felt the impact. The old economic order as it pertained to trade may be a thing of the past. But instead of pining for the supposed stability and prosperity of a bygone era, it’s important to recognize that even pre-Trump, the global economy wasn’t working that well for most of the world’s inhabitants or the planet itself, based in part on trade agreements that favoured profits over people. As economist Angella McEwen asks rhetorically, “If we are outraged that Donald Trump is flouting free trade deals that he himself negotiated, does that mean we have to defend free trade now?”
The answer, as McEwen goes on to say, is “of course not.” The solution for worker co-ops lies instead in ensuring that they continue to play their unique role within the economy, favour fair trade over free trade, and are protected in international trade agreements.
Unlike most conventional businesses, worker co-ops are rooted in their communities. They favour their members over international investors, they will use other co-op suppliers where available, and they won’t automatically gravitate towards the cheapest supplier. As Kyle White notes, “buying local, creating good jobs, and placing people over profits are what set co-ops apart from other companies.”
When worker co-ops do engage in international trade, moreover, they favour fair trade over free trade. There are examples in Canada including Just Us! and La Siembra, and overseas, such as India’s Self Employed Women’s Association. As Fairtrade America notes, “fair trade helps businesses source products that are ethically and sustainably produced while giving consumers confidence that the people behind the products they buy get a fair deal for their hard work.” And having this confidence is important to many consumers. A recent study found that 9 in 10 (88%) of global consumers surveyed would choose to buy from companies with ethical sourcing structures in place over ones that lacked such structures.
But in order for consumers to make an informed decision, the distinction between worker co-ops and traditional businesses when it comes to ethical sourcing must be made more evident. As the Canadian Centre for Policy Alternatives observes “Canada has the weakest disclosure rules of virtually any major developed country. Companies engage in ‘jurisdiction shopping’ to register in the province with the least transparent reporting requirements. However, the current Canadian Free Trade Agreement gives them access to the entire Canadian market, encouraging a regulatory ‘race to the bottom’.”
Thus, worker co-ops need to advocate instead for trade policies that ensure environmental and labour standards aren’t watered down, and that paying a fair price for goods and services is a necessity, rather than a choice. This will mark a significant shift from past trade agreements, but doing so is critical to ensuring the sustainability of both worker co-ops and the wider world.