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History of Fair Trade

• 1860: «Birth » of Max Havelaar, hero of the novel by Edouard DOUWES DEKKER about how business was unfair between Indonesia and Netherlands.

• American first, with Thousand Villages and SERRV (end of 40th)

• End of 50’ies : European with OXFAM• 1964: 1st alternative trade organization ATO,

by OXFAM

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History of Fair Trade

• 1968: 2nd United Nation Organization trade and development commitment : « Trade, not Aid »

• Same time : Fair Trade organizations start in North Europe.

• 1994 : 15 associations of 13 countries gather into NEWS! (Network of European World Shops).

• 2001 : FINE, (FLO, IFAT, NEWS, EFTA) proposed a common definition of the fair trade.

• 2007 : Fair trade = 2,300 B€ and 47% growth.

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Definition of Fair trade

• « Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. »

• Fair trade products are very diversify :–Coffee, tea chocolate, kinoa, decorations,–Around 60 products

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Concern of European Union

Ideological:• To trade in a socially responsible way

(Strategy on Sustainable Dev)

• To eradicate poverty in countries of the South (Millenium Dev Goals)

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Actions of European Union

Symbolic Actions:• Acknowledge benefit of Fair Trade• Fair Trade products in EU institutions• Fair Trade criteria in public authorities in EU

Consumer Information:• Promote Fair Trade to increase awareness• Help consumers make an informed choice

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Actions of European Union

Economic help:• Low VAT• Eliminate import duties• « Aid for Fair Trade »

Abuse Protection: Ensure• Fair price• Good conditions of production• Transparency, traceability

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Europe role in Fair Trade

11% of European citizens buy FT products : great demand !

• 4th July 1998 : European resolution• 29th Nov 1999 : last Commission Communication about

FT : definition of FT and fundamental principles

• The « FT file » went to an European institution to another

• Willingness to look after environment and social issues

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CriteriaEuropean criteria for FT (FT & development report, 1995) :

• a fair price for the producer ;

• long-term and stable relations with the producer ;

• transparency and tracability of the business ;

• respect of the ILO conventions ;

• environment protection , human rights protection…9

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LabellingSeveral types of labels exist :

• international brand-labels : FLO-Max Havelaar, FTO, STEP

• National brand-labels: Bio équitable

• a reference to national networks : PFCE, Minga, Artisans du Monde, UNAT…

• internal guarantee systems

• Bio labels and brand-labels: AB, Eco label Européen.

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Certification & Control

• 2007 : 23 certification organisations in 23 countries.

• United in Fair Trade Labelling Organizations-International (FLO-International) : responsible of the certification and also working for the processus’ unification throughout the world.

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Funding

• In 2004 : 18M€ given to FT organizations• Where it comes from :

• How it is used : 35% : local communities 34% : ministries 24% : FSE

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&

Fair Trade

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Financial aspects

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Courts of arabica, stock exchange of New York, 1980-2009

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• Mss Catherine Ashton, European commissioner in business, has declared:

«Considering the contribution which the fair trade can bring to the sustainable development, the Commission will maintain its commitment»

Fair Trade & European Union

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The European Commission did not give a specific subsidy to the fair

trade by Max Haavelaar label.

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• In Netherlands, the market share of the certified MALONGO coffee (fair trade and the other labels) spent from 2,9 % in 2001 to 27,8 % in 2006 and 33,6 % in 2008.

• CONCLUSION : the impact is very strong

Fair Trade & European Union

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