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WORLD FAIR TRADE DAY – EVERYTHING YOU'VE ALWAYS WANTED TO ASK... |
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PART A – WORLD FAIR TRADE DAY 10, WORLD FAIR TRADE ORGANISATION
What is World Fair Trade Day?
What is the World Fair Trade Organization?
Who says so?
Who can join in World Fair Trade Day?
What’s the difference between World Fair Trade Day and Fairtrade Fortnight?
What is Fair Trade?
What is 100% Fair Trade?
What is the FT100?
What is the Sustainable (Fair Trade) Economy?
What is the SFTMS – Sustainable Fair Trade Management System?
What are the 10 standards of Fair Trade?
How and why did Fair Trade & the environment become integrated?
Is there evidence to show that Fair Trade and a sustainable environment are mutually compatible?
PART B – REFERENCES TO ARTICLES, INTEREST, AND OTHER ORGANISATIONS REFERRING TO FAIR TRADE
What is the difference between Fair Trade and Fairtrade?
What does the Fairtrade label mean?
What is the difference between ethical trade and Fair Trade?
Why do charities and NGOs support Fair Trade it derogates from what they do?
People are much more aware of Fair Trade now – why?
What is the difference between Fair Trade and Free Trade?
Is there an argument against Fair Trade?
PART A – WORLD FAIR TRADE DAY 10, WORLD FAIR TRADE ORGANISATION
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What is World Fair Trade Day? |
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WORLD FAIR TRADE DAY is a global Fair Trade Festival every second Saturday of May. |
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What is the World Fair Trade Organization? |
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The World Fair Trade Organization (WFTO) is the global representative body of more than 350 organizations with a 100% commitment to Fair Trade. The WFTO touches the lives of 110 million farmers, artisans, retailers and supporters worldwide and represents $2.2billion in Fair Trade sales. The WFTO emerged from the International Fair Trade Association (IFAT) on 15th October 2008 by a 91% majority decision by its global membership. The transformation is a direct response to the failure of the WTO to correct the imbalance in trade and to present a Fair Trade solution to the extraordinary issues we face as a global society today. |
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Who says so? |
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“If we truly believe that Fair Trade is both sustainable and effective, then it is the solution to the world's financial crisis.’ Paul Myers, President, World Fair Trade Organization” Paul Myers, President WFTO |
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Who can join in World Fair Trade Day? |
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Everyone is invited to register their own events now. All events will be published and promoted on a purpose-built website with free marketing downloads: www.worldfairtradeday10.org. |
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What’s the difference between World Fair Trade Day and Fairtrade Fortnight? |
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World Fair Trade Day is a global event that happens on and around the second Saturday of May every year; Fairtrade Fornight is a local event that happens around the same time (in the UK Fairtrade Fortnight falls between 22 February-8 March). For the first time WFTD10 brings together worldwide Fair Trade networks including FTRN (Fair Trade Resource Network, USA) and Traid Aid (NZ). WFTO members have promoted WFTD since 2001.
WORLD FAIR TRADE DAY – HIGHLIGHTS TO DATE
A BIG DAY FOR THE PLANET 08 MAY 10
World Fair Trade Day 2010 events will include the following selected examples (all events subject to final confirmation).
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What is Fair Trade?
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Fair trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equality in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers, especially in the Southern Hemisphere. Fair trade organisations (backed by consumers) are actively engaged in supporting producers, raising awareness and in campaigning for changes in the rules and practice of international trade. |
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What is 100% Fair Trade? |
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When an organisation, be it a business, a charity or a social group, makes a total commitment to Fair Trade it is recognized by the World Fair Trade Organization as being 100% Fair Trade. It means that, not only does that organisation buy and sell products and produce under Fair Trade criteria, it promotes and practices Fair Trade principles across all of its business activity and encourages all of its suppliers and customers to do the same.
The WFTO's 10 Principles of Fair Trade spell out what total commitment looks like, and all its members are monitored against them. You'd be forgiven for thinking Fair Trade was about the price, but it isn't. 100% Fair Trade is about relationships. Relationships between people both locally and globally, relationships between organisations up and down the supply chain, and the relationships between the consumer and producer.
The relationships make a commitment to 100% Fair Trade possible. It leads to investment in training to increase small producers' independence. It puts issues like the environment and gender equity on the table. It makes transparency in all business dealings possible. It turns consumers into investors in the livelihoods of the marginalised.
100% Fair Trade is a total commitment between people to deliver a prosperous and sustainable future for the good of the planet and for the good of mankind. |
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What is the FT100? |
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The FT100 is the index of Fair Trade Organizations with a 100% commitment to Fair Trade. Organizations that have not only said enough-is-enough but that have the audacity to think the unthinkable and trade their way to a sustainable future. Organizations that go beyond the call of duty to represent a new approach to trade. Organizations, including producer cooperatives and famous brands, entirely motivated by the need for change in the way the world does business to impact poverty, climate change and financial crisis. |
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What is the Sustainable (Fair Trade) Economy? |
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The Sustainable Economy is the global market place regulated by Fair Trade Standards and values to bring about socially and environmentally sustainable practice, to restore balance and secure quality of life in the future for all. |
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What is the SFTMS – Sustainable Fair Trade Management System? |
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The SFTMS is a new Fair Trade certification tool that guarantees that an organization abides by Fair Trade policy and practice in anything it does, that it continually improves its policy and practice and that encourages all of its suplliers to do the same. The SFTMS is in its third and final draft having been tested in 9 pilot projects. The SFTMS has been designed for producer organizations but can also be applied throughout the supply chain.
It is built around a three year three step process developed by Heinz-Werner Engel on behalf of the World Fair Trade Organization in collaboration with WFTO members. |
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What are the 10 standards of Fair Trade? |
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• Creating opportunities for economically disadvantaged producers
: Fair Trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.
• Transparency and accountability
: Fair Trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.
• Capacity building
: Fair Trade is a means to develop producers’ independence. Fair Trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.
• Promoting Fair Trade : Fair Trade Organisations raise awareness of Fair Trade and the possibility of greater justice in world trade. They provide their customers with information about the organization, the products, and in what conditions they are made. They use honest advertising and marketing techniques and aim for the highest standards in product quality and packing.
• Payment of a fair price
: A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fair Traders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.
• Gender Equity
: Fair Trade means that women’s work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.
• Working conditions :
Fair Trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.
• Child Labour
: Fair Trade Organizations respect the UN Convention on the Rights of the Child, as well as local laws and social norms in order to ensure that the participation of children in production processes of fairly traded articles (if any) does not adversely affect their well-being, security, educational requirements and need for play. Organizations working directly with informally organised producers disclose the involvement of children in production.
• The environment
: Fair Trade actively encourages better environmental practices and the application of responsible methods of production.
• Trade Relations :
Fair Trade Organizations trade with concern for the social, economic and environmental well-being of marginalized small producers and do not maximise profit at their expense. They maintain long-term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. An interest free pre payment of at least 50% is made if requested.
The future of Fair Trade is in sustainability, because the future of all business is in sustainability. Fair Trade principles, standards, practice, vision and values are designed to deliver social and environmental sustainable practice.
The World Fair Trade Organiation has successfully piloted the Sustainable Fair Trade Management System (SFTMS). When put into practice the SFTMS will transform any business into a socially and environmentally sustainable business over the course of three years. .
FT and the environment have been associated for some years in Europe. The environment is an important factor in the 10 Fair Trade Standards and it is core to the future of sustainable business practice. But it is also critical to tustifying the premium for a better product is more compelling than telling people to pay more.
Producers live in some of the most fragile places on earth, they are custodians of the planet. We all need to be custodians of the planet, by building a stronger relationship with producers, investing in their businesses and protecting the planet. |
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How and why did Fair Trade & the environment become integrated? |
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The future of Fair Trade is in sustainability, because many argue, the future of all business is in sustainability. Fair Trade principles, standards, practice, vision and values are designed to deliver social and environmental sustainable practice.
The World Fair Trade Organisation has successfully piloted the Sustainable Fair Trade Management System (SFTMS). When put into practice the SFTMS will transform any business into a socially and environmentally sustainable business over the course of three years. .
Fair Trade and the environment have been associated for some years in Europe. The environment is an important factor in the 10 Fair Trade Standards and it is core to the future of sustainable business practice. But it is also critical to tjustifying the premium for a better product such as Fair Trade which is more compelling than simply telling people to pay more.
Producers live in some of the most fragile places on earth, they are custodians of the planet. We all need to be custodians of the planet, by building a stronger relationship with producers, investing in their businesses and protecting the planet. |
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Is there evidence to show that Fair Trade and a sustainable environment are mutually compatible? |
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One of the WFTO's members, Cafedirect in the UK has shown that the restoration of the rainforest is vital for shade grown organic award winning coffee production . The STERN report attributes 20% of carbon emissions to the destruction of the tropical rainforest. Logging is a bigger climate change issue than global transportation and deforestation is a consequence of poverty.
http://www.occ.gov.uk/activities/stern.htm
Cafédirect has been investigating climate change and ways to avert it for some years and has several studies [are these listed on their website or available to the public?].
Poverty, climate change and economic crisis are all related, they are all manufactured, they are all products of greed. The values of Fair Trade (transparency, accountability, etc) impact all areas of concern. If we can shift the values of the market place we can change the world.
We are taking all of the learning of Fair Trade over 60 years and rethinking it for tomorrow, we are turning Fair Trade from an issues to a solution. We are conceiving the sustainable economy and then we are going to build it. We are pioneers again and we invite the world to come pioneering with us. |
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PART B – REFERENCES TO ARTICLES, INTEREST, AND OTHER ORGANISATIONS REFERRING TO FAIR TRADE |
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What is the difference between Fair Trade and Fairtrade? |
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Fair Trade is a global economic development platform that integrates business, consumer and producer relationships, that are governed by the Charter of Fair Trade Principles, that are authorized by the World Fair Trade Organization. Fair Trade delivers market access for producers, direct investment opportunities for businesses and consumers and a sustainable social and environmental management system for trading. Fair Traders are driven to meet the needs of marginalised farmers, growers, artisans and manufacturers (collectively called producers) who organize themselves into cooperatives and groups to supply consumer products and services to generate income, to lift themselves out of poverty, to create a sustainable local economy.
Fairtrade is a trademarked labelling initiative owned and implemented by the Fairtrade Labelling Organisation (FLO). The Fairtrade Mark or logo certifies that a product meets agreed Fair Trade criteria for a product. The label does not apply to an organisation, it only applies to the particular product on which it is displayed (see next question). |
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What does the Fairtrade label mean? |
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In the UK the Fairtrade Foundation licenses the Fairtrade mark to different products which seek to reassure consumers about their producers and origins.
The criteria used for the Fairtrade mark are :
• A price is paid to producers which covers the cost of sustainable production
• A social premium is paid which producers can invest in community development projects
• Partial payment in advance is available if requested
• Contracts allow for long term planning.
http://www.publications.parliament.uk/pa/cm200607/cmselect/cmintdev/356/35605.htm |
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What is the difference between ethical trade and Fair Trade? |
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Essentially ethical trade is a term used for and by multinational global brands. It has been created as an alternative to Fair Trade but lacks the impact of Fair Trade. Ethical Trade initiatives tend to focus on local workers rights issues, identifying them and highlighting them without improving or implementing change. Ethical Trade initiatives work within existing structures with existing landowners and estate managers and existing hierarchies, fundamentally they don’t change anything, this is because Multinationals deal with large landowners, employers and plantation managers and not smallholder farmers and artisans which are the focus of Fair Trade. The ethical trade tag is designed to salve the conscience of the consumer without really tackling the issues at ground level.
Most clearly defined in the 2007 Government Report para 2.10 which also says that “fair trade can be said to represent a gold standard in terms of trading relations with producers”.
http://www.publications.parliament.uk/pa/cm200607/cmselect/cmintdev/356/35605.htm
http://www.publications.parliament.uk/pa/cm200607/cmselect/cmintdev/356/35605.htm#n23
There are a number of “ethical labels” which also seek to raise standards in corporate purchasing practices, including Rainforest Alliance (whose main concern is environmental sustainability and biodiversity), the Dutch “Utz” scheme which has an impressive 25-30% of the Dutch market and even Starbucks' inhouse ethical sourcing scheme CAFE, which has no guaranteed price or social premium but strives for various “social and environmental” objectives. In Germany there is the Common Code for the Coffee Community which requires minimum wages to be paid, not to use child labour, to allow union membership, and protect the environment – to which Nestlé, Sara Lee, Kraft and Tchibo have all signed up. All of which maintain the status quo.
http://www.publications.parliament.uk/pa/cm200607/cmselect/cmintdev/356/35605.htm#n23 |
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Why do charities and NGOs support Fair Trade it derogates from what they do? |
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The simple answer to this is because Fair Trade answers some of the critical issues they are trying to address - such as poverty, education, health care, human rights, and a sustainable environment - but in a different way. Fair Trade is focused on local producers and the direct economic and emotional exchange with consumers via Fair Trade brands, networks and organizations. The Fairtrade Foundation in the UK is also made up of a number of charities and NGOS such as Christian Aid, CAFOD, and Traidcraft. |
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People are much more aware of Fair Trade now – why? |
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Awareness of the issue has translated into sales. In the UK the total value of Fair Trade products sold in 2006 was £284 million, up by over 1000% since 1998. Worldwide, the various labelling organisations estimate that the amount of Fair Trade products sold increase by 30-40% every year.
Pioneers of the Fair Trade movement were originally driven by passionate supporters who just wanted to make Fair Trade successful. As the idea took root more and more opinion leaders took to Fair Trade and over time, products improved to the point that they were comparable or better than conventional Free Trade products. That coupled with increasing issues related to the food chain, and globalisation, including environmental degradation and concerns over working conditions has raised public awareness that there can be both “good” and “bad” consumption. Improved and increased distribution has made Fair Trade accessible to more areas of the market and major brands now recognise the potential of Fair Trade to raise their sales and use as a marketing tool. The Fairtrade Labelling Organization has also opened the Fair Trade sector up to major brands by making it possible to certify a single Fair Trade product in an otherwise conventional portfolio. |
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What is the difference between Fair Trade and Free Trade? |
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In theory, Free Trade is about freedom of movement of goods (and services) internationally under the market economy where demand dictates the price paid to producers. In practice the terms of Free Trade are dictated by trade agreements, barriers and government subsidies that create distortions and imbalances. The effect of Free Trade in practice is to drive prices to the floor to maximise short-term profit for shareholders. The consequences of these distortions in the market are poverty and climate change and economic crisis. Arguably there is no such thing as Free Trade because all governments have some restriction on how locally produced goods compete with imports. Think of Caribbean bananas in the US.
Fair Trade supporters say that Fair Trade IS about the freedom of movement of goods and knowledge. It limits market forces by saying that producers must be paid more than the minimum cost of production and it promotes active engagement of the market in the development of the producer economy to create the right conditions for planning and investment in infrastructure, welfare and sustainable growth. The real impact of Fair Trade is that it liberates entrepreneurial people and communities to take control of their lives and build local economies. |
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Is there an argument against Fair Trade? |
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Of course! No system works perfectly but Fair Trade may be one of the most useful economic tools developed so far in terms of providing sustainable stable economy …
Some of the fiercest critics of Fair Trade are the people who have been responsible for making it happen. They accept that Fair Trade is an ambition and that the world is moving towards it too slowly..
There is criticism that the Fairtrade label is only applied to single sourced products, cotton, coffee, banana, tea, sugar, oils etc… but not to manufactures products containing a number of different materials or components
Expense is a criticism, that the cost of certification is too great for many producer groups to afford, while the comparative cost to a large scale multi-national business is minute. For some this skews the who concept of Fair Trade from an economic development tool for the poor to a marketing programme for the rich.
Many argue that not all Fair Trade is the same. A company or organisation with a 100% commitment to Fair Trade, that not only manufactures all of its products and services to Fair Trade criteria, which includes managing its own business practices to Fair Trade criteria, has a very different impact to a company or brand that has a limited number of products certified Fairtrade.
Some notable Fair Trade thinkers are ferocious critics of the corporatisation of Fair Trade and the rapid expansion of Fairtrade certifcation into businesses with no interest in Fair Trade other than following the market and taking advantage of the rise of ethical spending by the public.
Fairtrade in Tea plantations has long been criticisesd by proponents of Fair Trade on the grounds that the role of the owner and the reliance on an owner to make decisions about premium distributions is undemocratic and fundamentally flawed.
There are several articles and organisations which have conducted research into the pros and cons of Fair Trade. “Unfair Trade” from the Adam Smith Institute argues that for all its good intentions, Fairtrade is not fair. First, by guaranteeing certified farmers a minimum price for their goods, it can distort local markets leaving other farmers even worse off. Second, only about 10 % of the premium paid by consumers actually makes it to the producer, which makes it an inefficient way of helping the poor. Most importantly, it can be argued that Fairtrade does little to aid economic development, focusing instead on sustaining farmers in their current state. Although helpful to some in the short term, this holds back mechanization, diversification, and progress up the value chain. By requiring farmers to form co-operatives, Fairtrade rules reduce opportunities for labourers to get full-time, permanent jobs and can foster corruption. The report also details the range of alternatives available to ethical consumers, which may be better options than Fairtrade. Primarily, critics of Fair Trade suggest that “it does not respond well to market signals. If the price of coffee drops too low for farmers to make a living, they believe this should be taken as a signal for farmers to move out of coffee production” Fair trade is booming but is it still a fair deal? - The Independent, 24 February 2007 25 Feb 2008 – Marc Sidwell “Unfair Trade”
The Adam Smith Institute is the UK's leading innovator of free-market economic and social policies. It is therefore by definition opposed to Fair Trade (or even Fairtrade). The report focuses on Fairtrade only – and particularly Fairtrade Fortnight – where its particular issues are with the marketing to consumers, that the major country to benefit is Mexico (as opposed to say Ethiopia), and that landowners (as opposed to labourers) benefit unfairly. Makes no clear distinction between Fair Trade and Fairtrade. Favours Rainforest Alliance labelling scheme.
http://www.adamsmith.org/publications/economy/unfair-trade-20080225961/
Additional Reading on Fair Trade – both For and Against...
Fair Trade and Development, June 2007 House of Commons International Development Committee Recommendations.
http://www.publications.parliament.uk/pa/cm200607/cmselect/cmintdev/356/35604.htm
Fairtrade in Your School, April 2005, Fairtrade Foundation
Fairtrade in Europe, 2005
Assessing the Potential of Fair Trade for Poverty Reduction and Conflict Resolution : A Case Study of Bolivian Coffee Producers, Imhof and Lee, 2007.
Half a Cheer for Fair Trade, by Philip Booth and Linda Whetstone, 2007
Is Fairtrade Coffee a Good Idea? Alex Singleton, Globalisation Institute blog, 17/01/05.
Does Fair Trade Coffee Help the Poor?, Colleen Berndt, June 2007, Mercatus Centre.
Bitter Cost of “fair trade coffee”, Financial Times, 9/9/06
Trading on Fairness, Financial Times, 12/9/06
Brewing Justice : Fair Trade Coffee; Sustainability and Survival, Daniel Jaffee, 2007.
The Dragon and the Elephant : China, India and the New World Order, David Smith, 2007
Does Fair Trade Help the Poor? , Acton Commentary, 31/10/07 |
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Actualizado ( Domingo, 20 de Febrero de 2011 23:01 )
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2012 WFTO |