Non profit organization

1. Welcome to the presentation
on
World Fair Trade

2. "Fair Trade is a trading partnership, based on dialogue,
transparency and respect, that seeks greater equity in
international trade. It contributes to sustainable
development by offering better trading conditions, and
securing the rights of marginalized producers and workers .
They backed by consumers are engaged actively in
supporting producers awareness raising and in campaigning
for changes in the rules and practice of conventional
international trade." They can be recognized by the
WFTO logo.
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Introduction

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The first attempts to commercialize fair trade goods in Northern markets
were initiated in the 1940s and 1950s by religious groups and various
politically oriented non-governmental organizations (NGOs). Ten Thousand
Villages, an NGO within the Mennonite Central Committee (MCC)
and SERRV International were the first, in 1946 and 1949 respectively, to
develop fair trade supply chains in developing countries. The products,
almost exclusively handicrafts ranging from jute goods to cross-stitch work,
were mostly sold in churches or fairs. The goods themselves had often no
other function than to indicate that a donation had been made.
The current fair trade movement was shaped in Europe in the 1960s. Fair
trade during that period was often seen as a political gesture against neo-
imperialism: The slogan at the time, "Trade not Aid", gained international
recognition in 1968 when it was adopted by the United Nations Conference
on Trade and Development (UNCTAD) to put the emphasis on the
establishment of fair trade relations with the developing world.
History

4. Fair trade is developed by an informal association
of four international fair trade networks:
1.Fairtrade Labelling Organization, 2.World Fair
Trade Organizations (WFTO), 3.Network of
European Worldshops and 4.European Fair
Trade Association (EFTA)
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Fair trade Formation

5. Fair Trade is more than just trading:
1.It proves that greater justice in world trade is
possible.
2.It highlights the need for change in the rules
and practice of conventional trade and shows
how a successful business can also put people
first.
3.It is a tangible contribution to the fight against
poverty, climate change and economic crisis.
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Functions of Fair Trade

6. • Fair trade is a social movement whose stated goal is to
help producers in developing countries achieve better
trading conditions and to promote sustainability.
• Members of the movement advocate the payment of
higher prices to exporters, as well as higher social and
environmental standards.
• The movement focuses in particular on commodities, or
products which are typically exported from developing
countries to developed countries, but also consumed in
domestic markets.
• It promotes sustainable development by offering better
trading conditions to, and securing the rights of,
marginalized producers and workers in developing
countries. 6
Functions of Fair Trade

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American Apparel, BeGood Clothing, Boll & Branch,
Cherie Amie, FairTrade Australia, Fair Indigo, Good &
Fair Clothing Co., HAE Now, Life Threads Clothing,
Maggie's Organics, prAna, Ten Thousand, Villages,
Y'abal Handicrafts
Following are companies that use fair trade :
Fair Trade

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Ayni Bolivia (Bolivia), Asha Handicrafts Association (India), Association
for Craft Producers (ACP) (Nepal), Baladarshan (India), Barbosa Fair
Trade (Netherlands), Bethlehem Fair Trade Artisans (BFTA) Palestine),
CRC (India), Creative Handicrafts (India), CTM Agrofair Italy (Italy), CTM
Altromercato (Italy), Dr. Bronner's Magic Soaps (USA), El Puente
GmbH (Germany), EZA Fairer Handel (Austria), Fair Trade Company -
People Tree Japan (Japan), FairMail (Netherlands), GEPA (Germany),
Glenart Trading (Pty) Ltd. (South Africa), Holy Land Handicraft
Cooperative Society (Palestine), Kiboko (Kenya), Kumbeshwar Technical
School (KTS) (Nepal), Mifuko (Finland), People Tree UK ( UK),
Pushpanjali (PFT) (India), Sasha (India), SeeMe (Netherlands), Selyn
Exporters Ltd. (Sri Lanka), SETU (India), Smolart Self-Help
Group (Kenya), Tara Projects (India), Thanapara Swallows
Development (Bangladesh), Trade Aid (New Zealand), Turqle
Trading (South Africa), TWINE (Taiwan), Yunnan Danyun Fair Trade
Development Co., Ltd. (China)
Some countries where Fair Trade works:

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10 Principles of Fair Trade
1. Creating Opportunities for Economically Disadvantaged
Producers
2. Transparency and Accountability
3. Fair Trading Practices
4. Payment of a Fair Price
5. Ensuring no Child Labor and Forced Labor
6. Commitment to Non Discrimination, Gender Equity
and Women’s Economic Empowerment, and Freedom
of Association
7. Ensuring Good Working Conditions
8. Providing Capacity Building
9. Promoting Fair Trade
10.Respect for the Environment
http://wfto.com/fair-trade/10-principles-fair-trade

10. There are several recognized Fairtrade certifiers,
including Fairtrade International (formerly called
FLO, Fairtrade Labelling Organizations International), IMO
and Eco-Social. Additionally, Fair Trade USA, formerly a
licensing agency for the Fairtrade International label, broke
from the system and is implementing its own fair trade
labelling scheme, which has resulted in controversy due to
its inclusion of independent smallholders and estates for all
crops. In 2008, Fairtrade International certified
approximately (€3.4B) of products The World Trade
Organization publishes annual figures on the world trade of
goods and services.
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Fair trade Movement

11. The movement is especially popular in the UK where
there are 500 Fairtrade towns, 118 universities, over
6,000 churches, and over 4,000 UK schools
registered in the Fairtrade Schools Scheme. In 2011,
over 1.2 million farmers and workers in more than 60
countries participated in Fair Trade, and €65 million
in Fairtrade premium was paid. According to
Fairtrade International, nearly six out of ten
consumers have seen the Fairtrade mark and almost
nine in ten of them trust it.
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Fair trade Movement

12. There are a large number of fair trade and ethical
marketing organizations often employing different
marketing strategies . Most Fair Trade products are
sold by those Fair Trade organizations that believe it
is necessary to market through supermarkets to get
sufficient volume of trade to have any real impact on
the developing world. The coffee has to come from a
certified Fairtrade cooperative, and there is a
minimum price when the world market is
oversupplied. The cooperatives can, on average, sell
only a third of their output as Fairtrade, because of
lack of demand, and sell the rest at world prices. 12
The Fair Trade strategy

13. The exporting cooperative can spend the money in
several ways. Some go to meeting the costs of
conformity and certification: as they have to meet
Fairtrade standards on all their produce, they have to
recover the costs from a small part of their
turnover, sometimes as little as 8%, and may not
make any profit. Some meet other costs. Some is
spent on social projects such as building schools,
clinics and baseball pitches. Sometimes there is
money left over for the farmers. The cooperatives
sometimes pay farmers a higher price than farmers
do, sometimes less, but there is no evidence on which
is more common.
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The Fair Trade strategy

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The World Fair Trade Organization (WFTO) aims to improve the
livelihoods of disadvantaged people in developing countries by linking
and strengthening organisations that offer just alternatives to unfair
trade structures and practices.
WFTO members share the following practices:
1. Commitment to Fair Trade : To trade with concern for the social,
economic and environmental well-being of marginalised producers in
developing countries. This means equitable commercial terms, fair
wages and fair prices. Unfair trade structures, mechanisms, practices
and attitudes will be identified and avoided.
2. Transparency: To openly share financial information, management
policies, business practices, product sources, production, marketing
and development programme plans on a regular basis. This enables
both members and the public to assess WFTO’s, and each
organisation’s social and financial effectiveness. This openness is
tempered with respect to sensitive commercial or political
information.
WFTO CODE OF PRACTICE

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3. Ethical Issues: To reflect in their structures a commitment to justice,
fair employment, public accountability and progressive work practices.
To seek the greatest possible efficiency at the lowest cost while involving
workers in decision-making and management as appropriate to each
organisation. To aim for adequate income for workers to meet their
basic needs, including health care, education and the capacity to save.
4. Working Conditions: To ensure a safe working environment that
satisfied at a minimum all local statutory regulations. To provide the
opportunity for all individuals to grow and reach their potential. To
ensure that work is carried out under humane working conditions, using
appropriate materials and technologies, while following good
production and work practices.
WFTO CODE OF PRACTICE

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5. Equal Employment Opportunities: To oppose
discrimination and ensure equality of employment
opportunities for both men and women who suffer from the
exploitation of their labour and the effects of poverty and
racial, cultural or gender bias.
6. Concern for People:To promote development which
improves the quality of life and which is sustainable for and
responsible to both people and the natural world. There will
be no exploitation of child labour. Trading activities should
not violate indigenous peoples’ claims on land or any
resources of vital importance to their way of life.
7. Concern for the Environment:
To encourage the trading of goods which are environmentally
friendly. To manage resources sustainably and to protect the
environment.
WFTO CODE OF PRACTICE

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8. Respect for Producers’ Cultural Identity
To encourage production and development of products based on
producers’ cultural traditions and natural resources. To promote
producers’ artistic, technological and organisational knowledge as a way
of helping preserve and develop their cultural identity.
9. Education and Advocacy
To promote fair trade by encouraging people to change consumption
patterns based on issues of social justice and concern for the
environment. To support campaigns or campaign for national and
international policies that will improve the living conditions of the poor
in developing countries. To increase public and corporate consciousness
of alternative trade as an effective means to change unfair international
trade structures and attitudes. To increase awareness of cultural and
traditional values of the South in order to promote intercultural
understanding and respect.
Working Relationships

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WFTO members and observers agree to negotiate our
differences through open and direct dialogue.
1. Relationships between Fair Trade Organizations (FTOs)
and consumers
FTOs provide consumers with high-quality, fairly priced
products and educate and inform. FTOs recognise that good
customer care - including respect for the customer, honest
marketing techniques and provision of information - is both
an ethical issue and a means of benefiting all parties in the
trading cycle. Through consumer feedback FTOs will receive
market and product information.
Working Relationships

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2. Relationships between FTOs
As representatives of the producers, FTOs should make efforts to
coordinate their activities and help each other achieve commercial
efficiency at the least possible cost in order to open up markets to
benefit the producers. Their cooperation and commercial transactions
shall be based on a clear and efficient work division according to their
different geographical locations and resources.
FTOs cooperate with each other by exchanging information about
products and market needs and ways of meeting them, including joint
supply and marketing. They seek to avoid both duplication and
exclusivity in agreements for marketing and representation. They also
aim to cooperate by obtaining funding for themselves and producer
organisations through credits, loans and working capital and optimising
existing resources.
Working Relationships

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3. Relationships between FTOs and Producer Organizations
The function of the FTO is to buy and sell and the function of
the producer organizations is to produce and sell. Their
commercial relationship should be complemented with
other actions addressing the overall situation. Market
information, product feedback, financial support and other
relevant services are available according to members’ and
observers’ capability. Taking into account the skills and
resources of producers, FTOs and producer organizations
seek to improve the quality, acceptability and range of their
product offerings. Both FTOs and producer organizations
agree to be responsible and professional in meeting their
commitments in a timely manner.
Working Relationships

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4. Relationships between Producer Organizations
Cooperation between producer organizations should be
frank, open and based on mutual respect to benefit their
members. They avoid competition by not duplicating the
designs or patterns of another group without permission.
They exchange information, have joint workshops, take
collective action and will, where possible, meet to discuss
common issues. Approved at the 1995 WFTO Conference
held in New Windsor, Maryland, USA. Download the WFTO
Code of Practice: English, Spanish and French.
http://wfto.com/our-path-fair-trade/wfto-code-practice
Working Relationships

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Buying Fairtrade Certified products makes a real difference for the
Fairtrade farmers and workers in developing countries. Fairtrade
means a better future for producers, workers, their families and
communities in these countries.
In addition to providing a fair and stable price for their products,
Fairtrade is helping farmers, workers and their communities build
better roads, access health care and send their kids to school.
Fairtrade also enables them to grow and develop their businesses
ensuring they can improve life for their families and communities well
into the future.
To learn more about the real impact Fairtrade is having on farmers'
lives in developing countries visit our partners websites Fairtrade
International and theFairtrade Foundation.
Take a Step to Fair Trade
Benefits to the farmer

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Fairtrade Awards 2014
The Fairtrade Awards recognise the Australian supporters,
retailers and licensees who are committed to promote Fairtrade
products and continue to help to create better future for farmers,
their families and local communities in developing countries.
We are delighted to announce the winners of the 2014 Fairtrade
Awards:
•Supporter of the Year 2014 - Fadi Elbarbar
•Product (Specialty) of the Year 2014 - Etiko 'This Shirt Frees
Slaves'
•Product (National) of the Year 2014 - Ben & Jerry's Choc
Fudge Brownie
•Café of the Year 2014 - Fresh St@rt Organic Cafe
•Café Chain of the Year 2014 - San Churro
•Specialty Retailer of the Year 2014 - Oxfam Melbourne
•Retailer of the Year 2014 - Coles

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• Critics claim that Fairtrade is unethical.
• Consumers are willing to pay more for Fairtrade
products in the belief that this helps the very
poor.
• The main ethical criterion of critics of Fairtrade is
that this money is diverted from the very poor
farmers to businesses in rich countries, to
moderately poor farmers, to employees of
cooperatives or are used for unnecessary
expenses, so there is inevitably an increase in
death and destitution.
Main challenges and Lesson learned

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• This informs criticisms that there is reason
to doubt that much of the extra money paid
reaches farmers, and that there is reason to
believe that Fairtrade harms non-Fairtrade
farmers.
• There are criticisms of what is designated
Unfair Trading under EU law. There are also
criticisms using many other criteria.
• One reason for low prices is that Fairtrade
imposes an inefficient marketing system.
Main challenges and Lesson learnt

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• Farmers are forced to sell through a monopsonist
cooperative, which may be inefficient or corrupt –
certainly some private traders are more efficient than
some cooperatives.
• They cannot choose the buyer who offers the best
price, or switch when their cooperative is going
bankrupt.
• There are also complaints that Fairtrade deviates from
the free market ideal of some economists. Brink calls
fair trade a "misguided attempt to make up for market
failures" encouraging market inefficiencies and
overproduction.
Main challenges and Lesson learnt

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• The evidence is that little of the extra money
paid by consumers reaches the Third World, let
alone farmers there.
• The Fairtrade Foundation does not monitor how
much extra retailers charge for Fairtrade goods,
and retailers almost never sell identical Fairtrade
and non-Fairtrade lines side by side
• so it is rarely possible to determine how much
extra is charged or how much reaches the
producers, in spite of the Unfair Trading
legislation. In four cases it has been possible to
find out.
Main challenges and Lesson learnt

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• One British café chain was passing on less than one
percent of the extra charged to the exporting
cooperative;in Finland, Valkila, Haaparanta and Niemi.
found that consumers paid much more for Fairtrade, and
that only 11.5% reached the exporter.
• Many counter-examples would be needed to show that
these are not typical. They claim that 1.53% of retail
prices reach the Third World, and, since Fairtrade
charges a 3% licencing fee at wholesale, the maximum
that reaches the Third World, even if traders charge low
margins is 50%. This would be unacceptable to most
charities.
Main challenges and Lesson learnt

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• There have been largely political criticisms of
Fairtrade, both from the left and the right. Some believe
the fair trade system is not radical enough.
• French author Christian Jacquiau, in his book Les
coulisses du commerce équitable, calls for stricter fair
trade standards and criticizes the fair trade movement for
working within the current system (i.e. partnerships with
mass retailers, multinational corporations etc.) rather than
establishing a new fairer, fully autonomous trading
system.
Main challenges and Lesson learnt

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• The FairTrade system is too rooted in a Northern
consumerist view of justice which Southern producers do
not participate in setting. "A key issue is therefore to
make explicit who possesses the power to define the
terms of Fairtrade,
• Some of the criticisms of Fairtrade from the free market
approach to economics appear to be linked to right
wing political approaches, but this does not mean that
their analysis in this particular case is unacceptable to
mainstream economists.
Main challenges and Lesson learnt

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Fair Trade Logo all over the world

32. Thanks for your patience