All Rights Reserved. updated September 2013

Overview of Fair Trade in N. America

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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