It’s time we talked about trade.

Transform Trade CEO, Charlotte Timson, explains why, if we’re serious about tackling inequality, we need to look beyond tax cuts and start thinking about the truth behind the trade system.

After weeks of economic turmoil, the UK government has reversed its decision to reduce taxes for the wealthiest.

Choosing to increase inequality, when millions of households are struggling in food and fuel poverty is something the electorate cannot stomach. Why should the wealthiest and most powerful accumulate more, when it comes at the cost of everyone else?

But the truth, that largely escapes public discourse, is that our current trade system embodies that very principle.

We see time and again powerful multinationals acting to increase profits no matter the cost to the most vulnerable, at home and overseas. We’re seeing it now with the energy companies. We saw it in COVID with the fashion brands and retailers.

Our trading system is driving inequality and creating poverty.

At the heart of trade injustice, lies abuse of power. Many investors and multinationals wield disproportionate power and influence, setting the terms of trade within supply chains, and lobbying for government policies and trade negotiations to protect their interests.

It can be difficult to step back from the complexity and scale of the challenges in trade to see how to make a difference. At Transform Trade, our work is driven by our values and the belief that people and our communities come first.

We’re working towards a complete system change in 3 ways.

First, we centre the needs and ideas of people most impacted by trade injustice.

We listen to them, resource and support the organisations that represent them and create spaces for their voices to be heard. We invest in long term relationships with people’s associations, social enterprises, worker collectives, and civil society organisations, supporting them in leadership, representation, developing sustainable business models and building up their assets and resilience.

We partner with the farmers, artisans and collectives who are transforming trade from the ground up.

Secondly, we call for greater accountability and transparency by businesses and governments. We believe that transparent supply chains are an essential part of people centred trade.

In 2018 we called for greater transparency in the tea sector – asking the big 6 UK tea brands to disclose the tea estates they buy from. Following on from that campaign, the tea from 20 brands can be tracked all the way to the estate on which it’s grown.

Transparency isn’t a fix-all solution but it makes unethical behaviour harder to hide and puts more power in the hands of people experiencing injustice in trade.

Finally, we seek a stronger regulatory framework and effective enforcement mechanisms.

All businesses should uphold human rights. But when left only accountable to shareholders, the constant pressure for short term profit means businesses take all measures possible to cut costs.

Without regulation, bad practices like environmental damage, health and safety violations and refusing to pay workers can become repeated patterns of behaviour.

But regulation works – take the Supermarkets watchdog– a regulatory body which Transform Trade campaigned for over many years. In 2014, when the watchdog was setup 80% of companies supplying supermarkets experienced abusive purchasing practices. By 2021, this had gone down to just 30%.

The backlash that prompted the government to pull out of the tax cut for the wealthiest people is important. It’s a small example of the power citizens have to make a difference, when they speak out.

It gives us one more reason to hope that together as a global community of people who care about injustice in trade, we can transform this system that backs the wealthy and penalises the most vulnerable.