Consumers' part in fair trade

The prominent English economist John Maynard Keynes once quipped that in life there were only two certainties: death and taxes. I beg to differ! I can actually think of quite a few other unequivocal truths. One of these must surely be that, in one way or another, or in some shape or form, we are all consumers.

Indeed, we live in a world of seemingly free markets where commerce, trade and consumption are the catalysts that grease the wheels of economic progress.

Therefore, it stands to reason that the role of the consumer and, hence, his or her well-being are pivotal in ensuring an economic system that is at once efficient, profitable and, at the same time, fair and just.

In the context of a globalised world, one can safely state that the relative majority of countries around the world have now become one large diversified market.

Decisions taken in Tokyo can affect the prices in New York and a trade decision in Brazil can negatively affect the output of a product in France. Hence, the dream that trade would not remain the weapon of discord and war but rather become the instrument of wealth creation has, by and large, been partially realised over the last 50-odd years. Most countries, especially those with economic clout, have accepted that protectionism and trade barriers were ultimately recipes for disaster, particularly in the long term. Cooperation and common sense must prevail if we wish for humanity to sustain this brisk pace of economic development and ever-increasing standards of living.

This does not mean that all is well and the job is complete. Economies are not static landscapes and, in this sense, the rights and obligations in trade and commerce must remain continually under review. Thus, each economic bloc or country, for that matter, must remain vigilant that the rules and regulations that constitute free markets abide by the rule of law. Anything less and it would be back to the law of the economic jungle.

All this applies to us as well. Although Malta may be small or maybe because it is so small, ensuring we have strong trade regulation is paramount if we are to enjoy the fruits of a liberalised and free, yet just, market. For the last 20 years, Malta has been through an economic re-think since abandoning the dismal controlled economy policies of the 1970s and 1980s. Coping with these fast-paced changes has required timely legislative amendments that regulate trade, consumer protection and a fair and level playing field for businesses and their customers.

In this sense, the news that broke on this very newspaper that the government is considering setting up a fully-fledged authority intent on safeguarding the interests of consumers is a timely and sensible decision. The new agency, dubbed Malta Competition and Consumer Affairs Authority (MCCAA), should bring together a number of directorates and existing entities that work in the field of trade regulation, thus focusing their approach on consumer protection and fair trading. The intention is clearly to reduce overlapping, making the merged authority more effective in maintaining competition, safeguarding the interests of consumers and promoting sound and fair business practices both for the benefit of consumers and businesses alike.

Sadly, from a consumer awareness perspective, much more needs to be done. There is no doubt that Malta enjoys a vibrant business landscape. I am always amazed at the inventiveness, energy and determination of our myriad of small, mostly family-run businesses that offer such a wide range of goods and services to a relatively minute population. Most businesses operate in a fiercely competitive environment, striving to chisel a fraction of the limited market share our island has to offer.

Unfortunately, there still remain pockets or sectors that seemingly resist change or real competition. If this is perceived or real is subject to correction. In this sense, some will quickly accuse some businesses of forming cartels or price fixing that adversely affect the proper pricing of goods and services and so not reflecting the real demand and underlying costs to produce or supply those same goods and services.

In this context, the MCCAA will have a tough job ahead. First and foremost, it will have to review and maybe carry some of the tasks of several regulators such as the Malta Resources Authority, the Office for Fair Trading, the Malta Financial and Services Authority, the Medicines Authority and the Malta Communications Authority. This list, I am sure, is by no means exhaustive.

Furthermore, it appears that the MCCAA will be an independent and autonomous body that will, hopefully, hold not only businesses but also public sector and government services to account.

It is all well and good to create regulatory structures and legislation that function decisively and fairly in the interests not only of the consumers but also for most of our hard-working businesses. However, the fact remains that the consumer must remain the key player in a functioning market place. As the European Commissioner for Health and Consumer Policy, John Dalli succinctly put it in a recent interview, the consumer should remain in the driving seat of his own lifestyle but should also be able to influence decisively policy through his choices taken in the market place. A well-informed consumer will not only get value for money. He or she will be able to make intelligent purchasing decisions for the sake of themselves and the reliable and honest businesses in the market place.

info@carolinegalea.com