Fair Trade

Introduction

Fair Trade is about working with people in the poorest nations to enable them to live in dignity and with hope for the future. Fair Trade works by paying reasonable wages for the work that is performed, by respecting the needs of individuals, by committing to long term relationships, and by providing credit where it is needed most.

The Fair Trade movement is the result of thousands of men and women who see the consequences of the imbalance of power between the poorest nations and the richest nations, and feel moved in their hearts to take action to redress this situation.

Fair Trade makes a real difference to the lives of the poorest producers.

Definition of Fair Trade

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 to, and securing the rights of, marginalized producers and workers – especially in the South. Fair Trade Organizations, 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. Fair Trade products are produced and traded in accordance with these principles — wherever possible verified by credible, independent assurance systems.

The 10 Standards of Fair Trade

The World Fair Trade Organisation (WFTO) prescribes 10 standards that Fair Trade organisations must follow in their day-to-day work and carries out monitoring to ensure these principles are upheld:

1: Creating opportunities for economically disadvantaged producers

Poverty reduction through trade forms a key part of the organization’s aims. The organization supports marginalized small producers, whether these are independent family businesses, or grouped in associations or co-operatives. It seeks to enable them to move from income insecurity and poverty to economic self-sufficiency and ownership. The trade supports community development. The organisation has a plan of action to carry this out.

2: Transparency and accountability

The organization is transparent in its management and commercial relations. It is accountable to all its stakeholders and respects the sensitivity and confidentiality of commercial information supplied. The organization finds appropriate, participatory ways to involve employees, members and producers in its decision-making processes. It ensures that relevant information is provided to all its trading partners. The communication channels are good and open at all levels of the supply chain.

3: Trading Practices

The organization trades with concern for the social, economic and environmental well-being of marginalized small producers and does not maximize profit at their expense. It is responsible and professional in meeting its commitments in a timely manner. Suppliers respect contracts and deliver products on time and to the desired quality and specifications.

Fair Trade buyers, recognising the financial disadvantages producers and suppliers face, ensure orders are paid on receipt of documents and according to the attached guidelines. An interest free pre payment of at least 50% is made if requested.

Where southern Fair Trade suppliers receive a pre payment from buyers, they ensure that this payment is passed on to the producers or farmers who make or grow their Fair Trade products

Buyers consult with suppliers before canceling or rejecting orders. Where orders are cancelled through no fault of producers or suppliers, adequate compensation is guaranteed for work already done. Suppliers and producers consult with buyers if there is a problem with delivery, and ensure compensation is provided when delivered quantities and qualities do not match those invoiced.

The organization maintains long term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. It maintains effective communication with its trading partners. Parties involved in a trading relationship seek to increase the volume of the trade between them and the value and diversity of their product offer as a means of growing Fair Trade for the producers in order to increase their incomes. The organization works cooperatively with the other Fair Trade Organizations in country and avoids unfair competition. It avoids duplicating the designs of patterns of other organizations without permission.

4: Payment of a fair price

A fair price is one that has been mutually agreed by all through dialogue and participation, which provides fair pay to the producers and can also be sustained by the market. Where Fair Trade pricing structures exist, these are used as a minimum. Fair pay means provision of socially acceptable remuneration (in the local context) considered by producers themselves to be fair and which takes into account the principle of equal pay for equal work by women and men. Fair Trade marketing and importing organizations support capacity building as required to producers, to enable them to set a fair price.

5: Child Labour and Forced Labour

The organization adheres to the UN Convention on the Rights of the Child, and national / local law on the employment of children. The organization ensures that there is no forced labour in its workforce and / or members or homeworkers.

Organizations who buy Fair Trade products from producer groups either directly or through intermediaries ensure that no forced labour is used in production and the producer complies with the UN Convention on the Rights of the Child, and national / local law on the employment of children. Any involvement of children in the production of Fair Trade products (including learning a traditional art or craft) is always disclosed and monitored and does not adversely affect the children’s well-being, security, educational requirements and need for play.

6: Non Discrimination, Gender Equity and Freedom of Association

The organization does not discriminate in hiring, remuneration, access to training, promotion, termination or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, HIV/Aids status or age

The organization provides opportunities for women and men to develop their skills and actively promotes applications from women for job vacancies and for leadership positions in the organization. The organization takes into account the special health and safety needs of pregnant women and breast-feeding mothers. Women fully participate in decisions concerning the use of benefits accruing from the production process. The organization respects the right of all employees to form and join trade unions of their choice and to bargain collectively. Where the right to join trade unions and bargain collectively is restricted by law and/or political environment, the organization will enable means of independent and free association and bargaining for employees. The organization ensures that representatives of employees are not subject to discrimination in the workplace.

Organizations working directly with producers ensure that women are always paid for their contribution to the production process, and when women do the same work as men they are paid at the same rates as men. Organizations also seek to ensure that in production situations where women’s work is valued less highly than men’s work, women’s work is re-valued to equalize pay rates and women are allowed to undertake work according to their capacities.

7: Working Conditions

The organization provides a safe and healthy working environment for employees and / or members. It complies, at a minimum, with national and local laws and ILO conventions on health and safety.

Working hours and conditions for employees and / or members (and any homeworkers) comply with conditions established by national and local laws and ILO conventions.

Fair Trade Organizations are aware of the health and safety conditions in the producer groups they buy from. They seek, on an ongoing basis, to raise awareness of health and safety issues and improve health and safety practices in producer groups.

8: Capacity Building

The organization seeks to increase positive developmental impacts for small, marginalised producers through Fair Trade.

The organization develops the skills and capabilities of its own employees or members. Organizations working directly with small producers develop specific activities to help these producers improve their management skills, production capabilities and access to markets – local / regional / international / Fair Trade and mainstream as appropriate. Organizations which buy Fair Trade products through Fair Trade intermediaries in the South assist these organizations to develop their capacity to support the marginalized producer groups that they work with.

9: Promotion of Fair Trade

The organization raises awareness of the aim of Fair Trade and of the need for greater justice in world trade through Fair Trade. It advocates for the objectives and activities of Fair Trade according to the scope of the organization. The organization provides its customers with information about itself, the products it markets, and the producer organizations or members that make or harvest the products. Honest advertising and marketing techniques are always used.

10: Environment

Organizations which produce Fair Trade products maximize the use of raw materials from sustainably managed sources in their ranges, buying locally when possible. They use production technologies that seek to reduce energy consumption and where possible use renewable energy technologies that minimize greenhouse gas emissions. They seek to minimize the impact of their waste stream on the environment. Fair Trade agricultural commodity producers minimize their environmental impacts, by using organic or low pesticide use production methods wherever possible.

Buyers and importers of Fair Trade products give priority to buying products made from raw materials that originate from sustainably managed sources, and have the least overall impact on the environment.

All organizations use recycled or easily biodegradable materials for packing to the extent possible, and goods are dispatched by sea wherever possible.

Organisations

Because trading relationships are so complex and extend into all aspects of life, then there are many facets to Fair Trade. In Europe, and relating to the activity of One World Hull, the following organisations are significant:

• The World Fair Trade Organisation (WFTO).
  
• The Fair Trade Labelling Organisations (FLO).
  
• British Association of Fair Trade Shops (BAFTS).

The One World Shop, Hull, is a member of BAFTS.

Labels

Fair Trade Mark

The Fair Trade Foundation is the UK body that has responsibility for the Fair Trade Mark. The mark looks like this:

and you will find this label on food products (but not yet on craft items). The label can only be used once the sources of products have been validated by the foundation as fair trade. You can get to their website from our links page.

The Fairtrade Label only applies to consumables (with the exception of footballs, greetings cards and roses, all of which may bear the label)

Fair Trade Organisation Label

Fair Trade is a global movement covering a great diversity of cultures and capabilities. As Fair Trade grows it is becoming increasingly important for the movement to speak for itself with a common voice, reflecting a common purpose. Equally it is important to preserve the purity of Fairtrade where possible.

Recognising the issues in here, IFAT has launched the Fair Trade organisation mark in 2004.

IFAT has subsequently been re-named as the World Fair Trade Organisation, see WFTO.

The WFTO label was turned into a huge banner which set off on a journey around the Globe, Starting in Mumbai and ending in Brussels. The banner visited Hull and is seen below outside the Wilberforce Institute for the study of Slavery and Emancipation, together with many of the Fair Trade activists in Hull and East Yorkshire.

Does Fair Trade make any difference?

When I was first married with small children there was often some month left at the end of the money. But we worked hard and gradually we got to where there was some money left at the end of the month.
This is the fair trade difference - the ability to make a difference over time.
Not instant wealth and luxuries like a lottery winner, but raised hopes, the chance to build a community building or a protected spring water outlet. A chance to get out of debt.
The self esteem to believe there is a better future.
And over time better health, education for your children, maybe medicine when it's needed.
Yes. Fair Trade works.
Yes. Everyone can take part.
Everyone who supports fair trade lights a candle in the darkness.

Still not sure?

Read the Grameen Bank story, how one person in Bangladesh started a bank with $27, and is now lending $500,000,000 per year to poor people with a 98% pay back record.

Sources of Fair Trade products in UK

Hand Crafted items

The largest importer of handicrafts is Traidcraft plc. Traidcraft sells via Mail Order, by Voluntary Representatives, and via Shops.
Retail outlets registered with BAFTS import from a diverse range of small groups, family businesses and co-operatives as per the BAFTS Importers Directory.

Beverages

The Fair Trade labelling organisations (owners of the Fairtrade mark) will, on request, validate the working conditions and other aspects of a product source, and if compliant with Fair Trade Criteria they will empower the company to place the Fairtrade Mark on the product. Examples of beverages falling into this category are CafeDirect Coffee, Clipper Tea, Green and Blacks Drinking Chocolate.

Fairtrade Marked products can be obtained from most supermarket chains, and from many of the BAFTS registered retailers including One World Shop, Hull, however, purchases from FAir Trade Shops such as One World Hull are significantly more valuable to the Fair Trade movement as the profits are used to further Fair Trade.

Foodstuffs

As with beverages, Fairtrade labelling applies to food, and many food products carry the label, including Green and Blacks chocolate, Traidcraft Geo Bars, Dubble chocolate bars, etc.
Fairtrade labelled Foodstuffs are again available in most supermarket chains, and from many of the BAFTS registered retailers including One World Shop, Hull.

Countries which provide our goods for sale

HELPING FAIR TRADE

WEFT (Registered Charity 1061955) and the Hull One World Shop is able to use donations from members of the general public to help Fair Trade to grow.
If you would like to support us in this way, please click WEFT Finance for details. Thank you.