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All Rights Reserved. updated September 2013
Overview of Fair Trade in N. America
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Companions to this presentation available at FTRN.org:
editable Power Point file
34-page booklet PDF file of booklet
Outline
1. Why change traditional trade?
2. What is Fair Trade?
3. Fair Trade in action
4. Brief history of Fair Trade
5. Challenges facing Fair Trade
6. How to get involved! William Gabriel, Windward Islands. Photo credit: Simon Rawles
Over 2 billion of the world’s people live on
less than $2 a day
Farmer incomes have declined dramatically while consumer prices
and agribusiness’ profits have increased
Smallholders grow 70 percent of the world’s food, but still make up
half of the world’s hungriest people.
Why Change Traditional Trade?
Problems with traditional trade
1. Gives too much power to multinational corporations and rich countries
2. Minimizes opportunities for vulnerable producers and sometimes degrades the environment
3. Focuses on short-term profits, evades the full costs of commerce, and overlooks the plight of marginalized people.
Goals of Fair Trade
Empowered communities
Market access
Increased independence
Community development
Kids use water pump provided by Fair Trade, Ghana. Photo credit: J. DeCarlo
Weavers gain healthy and safe workshop conditions through Fair Trade in Cambodia. Photo credit: Jeff Goldman
What is Fair Trade?
Women artisans, Rwanda. Photo credit: SERRV
A Social Justice Movement
An Alternative Business Model
A System of Global Commerce
A Tool for International Development
A Faith-Based Activity
Farmer and consumer pick coffee, Nicaragua. Photo credit: Global Exchange
A useful definition of Fair Trade
“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.” -FINE (1998)
How does Fair Trade Differ from Free Trade?
Free Trade Fair Trade
Main goal: To increase nations’ economic growth To empower marginalized people and
improve the quality of their lives
Focuses on: Trade policies between countries Commerce among individuals and
businesses
Primarily benefits: Multinational corporations, powerful
business interests
Vulnerable farmers, artisans and workers in
less industrialized countries
Critics say: Punishing to marginalized people &
the environment, sacrifices long-term
Interferes with free market, inefficient, too
small scale for impact
Major actions: Countries lower tariffs, quotas, labor
and environmental standards
Businesses offer producers favorable
financing, long-term relationships, minimum
prices and higher labor and environmental
standards
Producer compensation
determined by: Market and government policies
Living wage and community improvement
costs
Supply chain: Includes many parties between
producer and consumer Includes fewer parties, more direct trade
Key advocate
organizations:
World Trade Organization, World
Bank, International Monetary Fund
Fairtrade Labeling Organization, World Fair
Trade Organization
Identifying Fair Trade
Organization recognition
Product certification
There are also a few other recognition systems, each with small market share, listed at FTRN.org.
Principles for Recognizing Fair
Trade Organizations (FTOs)
Create Opportunities for Economically & Socially Marginalized Producers
Develop Transparent & Accountable Relationships
Build Capacity
Promote Fair Trade
Pay Promptly & Fairly
Catarina and Mercedes produce crafts in Guatemala for MayaWorks. Photographer Naomi Czerwinskyj.
Principles for FTOs
Support Safe & Empowering Working Conditions
Ensure the Rights of Children
Cultivate Environmental Stewardship
Respect Cultural Identity
Girl from a Nicaraguan Coffee Coop. Photo credit: Global Exchange
Criteria for Product Certification
Farmers & Workers benefit from:
• Fair Prices
• Healthy & Safe Labor Conditions
• Direct Trade
• Democratic & Transparent Organizations
• Community Development
• Environmental Sustainability
Sugar cane farmer cuts sample to taste. Photo credit: Fair Trade USA
Marie Malan, vineyard farm manager. Photo credit: Fair Trade USA
Marginalized workers gained
dignity in Fair Trade winery in South Africa.
Earned stable income, electricity
and sanitary systems
Mandated that workers own
shares in the company
Supported an elementary school
and computer center
FAIR TRADE IN ACTION!
Sahaj Women’s Cooperative
Trained tribal women groups with vocational
education
Helped artisans create functional
products
Increased income 400%
Women gained social status within their
family & community
Sharda Ben Kochra, India. Photo credit: Handmade Expressions
Kuapa Kokoo Farmers Union
Funded schools for girls in Ghana
Built capacity of Sierra Leone’s first Fair Trade
cocoa coop
Invested in corn mills and palm oil extractors
Trained in soap making and
batiks Girls now don't have to stay home to work. Photo credit: Phil Grout
1.3 million farmers and workers in 2012 benefitted directly from Fair Trade in over 70 producer countries.
Since 1998, sales of certified Fair Trade goods in just the U.S. have generated an estimated additional $260 million
for producers.
Fair Trade by Some Numbers:
Elvia Almachi works with Fair Trade flowers at Agrogana Farm, Ecuador. Photo credit: Fair Trade USA
Global Fair Trade retail sales exceed $7 Billion per year.
Fair Trade sales in 2012 grew around 20% globally.
Advocates visit cacao farmer, Nagua, Dominican Republic. Photo credit: Stephanie Sheerin
1149 Producer Organizations Operated in Over 70 Countries in 2012
Number of FLO Certified Producer Organizations by Country – 2011
(when 1030 organizations operated in 67 countries)
0
20
40
60
80
100
120
FTC Coffee Imported to the U.S.– from total of
163 million pounds in 2012
Another look at where producers are…
Peru, 23%
Colombia, 13%
Honduras, 13%
Nicaragua, 11%
Mexico, 10%
Other Latin America,
17%
Indonesia, 8%
Other Asia, 2%
Ethiopia, 2%
Other Africa, 1%
Fair Trade Sales – 2012 (in millions of dollars):
Consumers Buy Over $7B of Fair Trade Products in Over 120 Countries
0 500 1000 1500 2000 2500
UK
USA
Germany
France
Switzerland
Canada
AUS/NZ
Netherlands
Sweden
Ireland
Finland
Austria
Belgium
Denmark
Japan
Italy
Norway
Spain
South Africa
Rest of World
In N. America, retail sales by 250 FTOs, mostly from crafts, represent 5% of all Fair Trade sales.
SURE artisan, India. Photo credit: Handmade Expressions
In N. America, sales by over 700 industry partners of FTC goods, made mostly from 15 agricultural products, represent 95% of all
Fair Trade sales.
Woman picking tea leaves. Photo credit: Fair Trade USA
Fair Trade Certified Products, with Premium
Payments to Producers in 2012 ($ millions)
from U.S. & Canada Sales
Source: FTUSA
Coffee 31.8
Bananas & Produce 2.8
Sugar 0.6
Cocoa 0.5
Tea 0.5
Flowers 0.4
Vanilla/Spices 0.2
Rice & Quinoa 0.2
Wine < 0.1
Honey < 0.1
Apparel / Linens < 0.1
Olive oil, Nuts, and Shea Butter < 0.1
Total 37.1
12,000 FTC Products Are Sold At Retail
Locations in US - Major Brands: Coffee Shops:
Caribou Coffee, Dunkin' Donuts, Peet's Coffee and Tea,
Seattle's Best Coffee, Starbucks Coffee
Grocery Stores:
Costco, Giant, Kroger, Safeway, Sam's Club, Target, Trader
Joe's, Wal-Mart, Wegman’s, Whole Foods Market
Other Shops:
Ben & Jerry's Scoop Shops, Bruegger's, Einstein Bagels
Green Mountain Coffee Roasters was the largest purchaser of
Fair Trade products in N. America in 2012, with over $75
million paid to producers.
Master trainer, Pakistan. Photo credit: Mike DuBose, UMNS & Global Goods Partners
Body Care
Cards / Stationary
Clothing
Decorative Art
Handbags and Totes
Home Textiles
Furniture
Jewelry
Musical Instruments
Religious Items
Sports Equipment
Toys
Fair Trade products
available through FTOs:
Dr. Bronner’s Magic Soaps
Equal Exchange
SERRV
Ten Thousand Villages
The Four Biggest
FTOs by Sales
Farmer carries bag of mint, Sri Lanka. Photo credit: Dr. Bronner’s Magic Soaps
Most of today’s Fair Trade organizations began during the mid 20th century as missionary
projects, humanitarian efforts or political and economic action statements.
History of Fair Trade: How Did Fair Trade Begin?
1940s
1960s 1970s 1980s 1990s 2000s
•1946: Edna Ruth Byler imports needlecrafts from displaced in Europe
•1949: Church of the Brethren establish SERRV International
•1968: UNCTAD embraces “Trade not Aid” concept
•1972: First Ten Thousand Villages store opens
•1986: Equal Exchange established as cooperative, 100% Fair Trade business
•1989: IFAT established by Fair Trade pioneers
•1994: Fair Trade Federation formed
•1997: Fair Trade Labeling Organizations formed
•2004: Producers form national and regional Fair Trade associations across Asia, Latin America and Africa
•2005: 750 Fair Traders participate in Fair Trade Futures Conference (again in 2010)
•2011 Fair Trade USA leaves Fairtrade International system
Fair Trade Timeline:
•1969: Oxfam and other humanitarian organizations open the first World Shop in Europe
•1988 Farmers and activists launch the first Fair Trade product certification system, Max Havelaar
2012: 100,000 people, at over 1000 events around N. America, participate in World Fair Trade Day, the largest event in N. American Fair Trade history
•2010: A second product certification becomes widely recognized in N. America, IMO’s Fair for Life Social & Fairtrade Certified.
Challenges Facing Fair Trade:
1. Reform or replace traditional trade?
2. How should fair prices and standards be determined?
3. How to deal with competing labels and ensure credibility?
4. Should hired labor plantations and rich country producers also benefit from Fair Trade?
5. Others
Shop Fair Trade 1. www.FTRN.org for up-to-date
“Where to Buy”
2. Hundreds of members of
www.FairTradeFederation.org
3. Hundreds of members of the World
Fair Trade Organization at
www.WFTOMarket.com
4. Retail outlets carry certified Fair
Trade products of
www.fairtradeusa.org
www.fairtradeamerica.org
www.fairforlife.net
5. Ask you local stores to carry Fair
Trade goods
Tasting Fair Trade wine. Photo credit: Amherst Fair Trade Town
Learn More
1. www.FTRN.org for up-to-date “Learn Up”
resources
2. Advocacy groups
3. www.FairTradeFederation.org about fully
committed Fair Trade Organizations
4. Fair Trade Organizations who are members
of FTF or WFTO
5. Certification systems & company partners
www.fairtradeusa.org
www.fairtradeamerica.org
www.fairforlife.net
6. Ask local stores for information
7. Fair Trade producer trip
Newcomers and advocates participate in a Fair Trade Federation seminar. Photo credit: Fair Trade Federation
Spread the Word!
1. Refer people to Fair Trade resources
2. Organize an event
3. Introduce your friends to key players in Fair Trade
4. Ask local stores to carry Fair Trade items
5. As your workplace, school or faith community to use Fair Trade items
6. Give Fair Trade gifts
7. Take a friend shopping
8. See www.FTRN.org for curricula.
Montclair, NJ, Fair Trade Club spreading Fair Trade at expo. Photo credit: Montclair Fair Trade Town
Work or Volunteer
1. Job listings at www.FTRN.org
2. Contact advocacy groups
3. Volunteer with faith-based groups
4. Contact business in Fair Trade
Fair Trade coffee server, Wisconsin. Photo credit: WFTD Sinisawa, WI.
Join an Action Campaign 1. Host an event for World Fair Trade Day
or Fair Trade Month (FTRN.org)
2. Do reverse trick-or-treating (globalexchange.com)
3. Join the Valentine’s Day of Action (globalexchange.com)
4. Organize a Fair Trade Town or
University
www.fairtradetownsusa.org
5. Advocate for policy reform
6. Support nonprofit organizations, such as FTRN
Reverse Trick or Treating Materials. Photo credit: Global Exchange
“Fair Trade” means that Haitians and others around the world can have a better life, have a better vision of themselves, can stand on their own two feet.” - Gisele Fleurant, Director, Committee for Haitian Artisans
Access this presentation and more educational resources at FTRN.org
Beads to Bricks at BeadsForLife. Photo credit: Photo thanks to www.charlessteinbergphotography.com