Overview of Fair Trade in N America v11!10!11

8/3/2019 Overview of Fair Trade in N America v11!10!11

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All Rights Reserved.updated October 2011

Overview ofOverview of

Fair Trade inFair Trade inN. AmericaN. America


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Brought to you byBrought to you by

Companions to this presentation available atFTRN.org:

editable Power Point file

34-page booklet PDF file of booklet


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OutlineOutline

1. Why change traditional trade?

2. What is Fair Trade?

1. Fair Trade in action

2. Brief history of Fair Trade

1. Challenges facing Fair Trade

2. How to get involved!

William Gabriel, Windward

Islands.Photo credit: Simon Rawles


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Why Change Traditional Trade?


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Problems with traditional tradeProblems with traditional trade

1. Gives too much power to multinationalcorporations and rich countries

2. Minimizes opportunities for vulnerableproducers and sometimes degrades theenvironment

3. Focuses on short-term profits, evades thefull costs of commerce, and overlooks theplight of marginalized people.


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Goals of Fair TradeGoals 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


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What is Fair Trade?What is Fair Trade?

Women artisans,

Rwanda.

Photo credit: SERRV


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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


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A useful definition of Fair Trade

a trading partnership, based on dialogue, transparencyand respect, that seeks greater equity in internationaltrade. It contributes to sustainable development by

offering better trading conditions to, and securing therights of, marginalized producers and workers

especially in the South. Fair Trade organizations, backedby consumers, are engaged actively in supporting

producers, awareness raising and in campaigning forchanges in the rules and practice of conventional

international trade.-FINE (1998)


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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 andbusinesses

Primarily benefits: Multinational corporations, powerfulbusiness 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, laborand 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 betweenproducer 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

Free Trade

Fair TradeMain goal:

To increase nations economic growthTo empower marginalized people and improve the quality of their lives

Focuses on:Trade policies between countries

Commerce among individuals and businessesPrimarily benefits:

Multinational corporations, powerful business interestsVulnerable 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 impactMajor actions:

Countries lower tariffs, quotas, labor and environmental standardsBusinesses offer producers favorable f inancing, long-term relationships,

minimum prices and higher labor and environmental standardsProducer compensation determined by:

Market and government policiesLiving wage and community improvement costs

Supply chain:Includes many parties between producer and consumer

Includes fewer arties more direct trade


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Identifying Fair Trade

Organization recognition

Product

certification

There are also a few other organizations

recognizing a small number of FTOs, or certifying asmall amount of Fair Trade products.


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Principles forRecognizing Fair

Trade Organizations(FTOs)

Catarina and Mercedes produce

crafts in Guatemala for

MayaWorks. Photographer

Naomi Czerwinskyj.


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Principlesfor FTOs

Girl from a Nicaraguan Coffee

Coop.



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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


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Marie Malan, vineyard farm

manager.

Photo credit: Fair TradeUSA

FAIR TRADE IN ACTION!


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Sahaj Womens Cooperative

Sharda Ben Kochra,

India.

Photo credit:

Handmade Expressions


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Kuapa Kokoo Farmers Union

Girls now don't have to stay home to work.Photo credit: Phil Grout


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Fair Trade by Some Numbers:

Elvia Almachi works with

Fair Trade flowers at

Agrogana Farm, Ecuador.


USA


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Advocates visit

cacao farmer,

Nagua, Dominican

Republic.

Photo credit:

Stephanie Sheerin


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878 Producer Organizations Operate inOver 70Countries the Top 20

Number of FLO Certified Producer Organizations by Country - 2010


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FTC Coffee Imported to the U.S. from total of around 110million pounds in 2010

Another look at where producers are


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Fair Trade Sales 2009 (in millions of dollars):

Consumers Buy Fair Trade Products in Over20Countries a sample of where


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SURE artisan,

India.

Photo credit:

HandmadeExpressions


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Woman picking tea leaves.


USA


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Fair Trade Certified Products, with PremiumPayments to Producers in 2010 ($ millions)

Source: FTUSA

Coffee 10.9Bananas 1.3

Sugar 0.64

Tea 0.63Flowers 0.31

Cocoa 0.30Vanilla/Spices 0.13

Wine 0.07Honey 0.06

Rice & Quinoa 0.05

Olive oil, Olives, BrazilNuts,and Shea Butter0.01

Total 14.4


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9500 FTC Products Are Sold At 60,000

Retail Locations in US - MajorBrands: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, Wegmans, Whole Foods Market

Other Shops:

Ben & Jerry's Scoop Shops, Bruegger's, Einstein Bagels

Green Mountain Coffee Roasters passed Starbucks in 2010

as the largest purchaser of Fair Trade products in the world,

with around $75 million paid to producers.


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Master trainer, Pakistan.

Photo credit: Mike DuBose,

UMNS & Global Goods

Partners

Body Care

Cards / Stationary

Clothing

Decorative ArtHandbags and Totes

Home Textiles

Furniture

Jewelry

Musical InstrumentsReligious Items

Sports Equipment

Toys

Fair Trade products

available through FTOs:


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Dr. Bronners Magic Soaps

Equal Exchange

SERRV

Ten Thousand Villages

The Four BiggestFTOs by Sales

Farmer carries bag of mint, Sri Lanka.

Photo credit: Dr. Bronners Magic Soaps


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History of Fair Trade:How Did Fair Trade Begin?


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1940s

1960s 1970s 1980s 1990s 2000s

1946: Edna Ruth Byler1946: Edna Ruth Bylerimports needlecraftsimports needlecraftsfrom displaced infrom displaced in

EuropeEurope

1949: Church of the1949: Church of theBrethren establishBrethren establishSERRV InternationalSERRV International

1968: UNCTAD1968: UNCTADembraces Tradeembraces Tradenot Aid conceptnot Aid concept

1972: First Ten1972: First TenThousand VillagesThousand Villagesstore opensstore opens

1986: Equal1986: EqualExchange establishedExchange establishedas cooperative, 100%as cooperative, 100%Fair Trade businessFair Trade business

1989: IFAT1989: IFATestablished by Fairestablished by FairTrade pioneersTrade pioneers

1994: Fair Trade1994: Fair TradeFederation formedFederation formed

1997: Fair Trade1997: Fair TradeLabelingLabelingOrganizationsOrganizations

formedformed

2004: Producers form2004: Producers formnational and regional Fairnational and regional FairTrade associations acrossTrade associations acrossAsia, Latin America andAsia, Latin America and

AfricaAfrica

2005: 750 Fair Traders2005: 750 Fair Tradersparticipate in Fair Tradeparticipate in Fair TradeFutures ConferenceFutures Conference

2011 Fair Trade USA2011 Fair Trade USAleaves Fairtradeleaves Fairtrade

International systemInternational system

Fair Trade Timeline:

1969: Oxfam and1969: Oxfam andother Europeanother Europeanhumanitarianhumanitarianorganizations openorganizations openthe first Worldthe first WorldShopShop

1988 Farmers and1988 Farmers andactivists launch theactivists launch the

first Fair Tradefirst Fair Tradecertification system,certification system,Max HavelaarMax Havelaar

2009: 65,000 people, at2009: 65,000 people, atover 450 events around N.over 450 events around N.America, participate inAmerica, participate inWorld Fair Trade Day, theWorld Fair Trade Day, thelargest event in N.largest event in N.American Fair TradeAmerican Fair Trade

historyhistory

2010: A second product2010: A second productcertification becomescertification becomeswidely recognized , IMOswidely recognized , IMOsFair for Life Social &Fair for Life Social &Fairtrade Certified.Fairtrade Certified.


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Major Nonprofits inMajor Nonprofits in

Fair Trade:Fair Trade:

There are scores of other nonprofit players in the Fair Trade movement, including other faith-

based organizations, student groups, international development organizations, trade policy

outfits, and labor rights groups.


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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 richcountry producers also benefit from Fair

Trade?

5. Others


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Shop FairTrade 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. Major retail outlets of Fair Trade

Certified products at

www.transfairusa.org

5. Brands certified as Fair for Life at

www.fairforlife.net

6. Ask you local stores to carry Fair

Trade goods

Tasting Fair Trade wine.

Photo credit: Amherst

Fair Trade Town


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Learn More

1. www.FTRN.org for up-to-date Learn Upresources

2. FTRNs free, monthly e-newsletter

3. www.FairTradeFederation.orgabout fully

committed Fair Trade Organizations

4. Fair Trade Organizations who are members

of FTF or WFTO

5. www.fairtradeusa.org about Fair Trade

Certified

6. www.fairforlife.net about Fair for Life

7. Ask local stores for information

8. Fair Trade producer trip

Newcomers and advocates

participate in a Fair Trade

Federation seminar.Photo credit: Fair Trade

Federation


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Spread the Word!

1. Refer people to Fair Traderesources

2. Organize an event

3. Introduce your friends to key

players in Fair Trade4. Ask local stores to carry Fair

Trade items

5. As your workplace, school or

faith community to use FairTrade 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


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Work or Volunteer

1. Job listings atwww.FTRN.org

1. Job listings atwww.FairTradeFederation.org

1. Volunteer with faith-basedgroups

1. Contact business in FairTrade

Fair Trade coffee server,Wisconsin.

Photo credit: WFTD Sinisawa, WI.


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Join an Action Campaign1. Host an event for World Fair Trade Day

(FTRN.org)

1. Do reverse trick-or-treating(globalexchange.com)

1. Join the Valentines Day of Action(globalexchange.com)

1. Organize a Fair Trade Town

(www.fairtradetownsusa.org)

1. Advocate for policy reform

1. Support nonprofit organizations, such asFTRN

Reverse Trick or Treating

Materials.



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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

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Overview of Fair Trade in N America v11!10!11

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