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An Introduction to Fair Trade

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1 An Introduction to Fair Trade

2 “Before you finish eating breakfast in the morning, you’ve depended on
More than half the world.” Martin Luther King Our lives are now more interconnected than ever with people all over the world who produce goods that we use here in Scotland. We have a choice – we can make those connections positive or negative. Fair Trade helps to ensure that they’re positive.

3 What is Fair Trade? Fair Trade is a way of doing business that aims to build an equal and respectful relationship between producers in developing countries and consumers. Producers give consumers a product they need, and consumers in return give them a fair price; this creates a mutually beneficial relationship. This is a way of doing business that aims to remove the inequality and power imbalance that can be a common feature of the conventional global trading system.

4 The Charter of Fair Trade Principles: Core Principles
Market Access for marginalised producers Sustainable & equitable trading relationships Capacity building & empowerment Consumer awareness raising & advocacy Fair Trade as a “social contract” The Charter of Fair Trade Principles is a single international reference point for Fair Trade, adopted by World Fair Trade Organization (WFTO) and Fairtrade International since 2009. It provides concise explanation of Fair Trade principles. Core Principles include: Market Access for marginalised producers Sustainable & equitable trading relationships Capacity building & empowerment Consumer awareness raising & advocacy Fair Trade as a “social contract” More information on the Charter of Fair Trade Principles:

5 What is the difference between Fairtrade, Fair Trade, fair trade and Fairly Traded?
There is often confusion over the different definitions of Fairtrade, Fair Trade, fair trade and Fairly Traded. Fairtrade – one word – refers to the mark or certification label given by the Fairtrade Foundation (in the UK) to products they can verify as adhering to their standards. The standards are overseen globally by Fairtrade International. Fair Trade – two words with capital letters– is often used in two different ways. Firstly, ‘Fair Trade’ is often used to refer to the certification of the World Fair Trade Organisation (WFTO) award within the WFTO Guarantee scheme. ‘Fair Trade’ is also used often to refer to the wider Fair Trade movement to secure better prices, decent working conditions, local sustainability and fair terms of trade for farmers and workers in the developing world. So, ‘Fair Trade’ can be used when referring to specific products with the WFTO certification and the wider movement in general. fair trade – two words with no capitals – is a broader terms that refers to the general act of buying, selling or exchanging commodities in a way that is fair. It doesn’t necessarily imply the strict standards of Fair Trade. fairly traded - refers to products that have been fairly traded but currently do not have certification by either FLO or WFTO. 

6 The two main Fair Trade certification schemes are the Fairtrade mark, and the World Fair Trade Organization mark (WFTO). Fairtrade Mark The first Fair Trade certification scheme to be used in the UK An organisation called FLO-CERT assesses applications and decides whether to award producer groups the certification. The Fairtrade Foundation, then grants companies a license to use the Fairtrade Mark on these products when sold in the UK The Fairtrade Foundation has ‘sister’ organisations in many countries around the world, each of which has the authority to award the Fairtrade Mark to qualifying products sold in that country Together, all these organisations which award the Fairtrade Mark are part of an umbrella organisation – Fairtrade International The Fairtrade Mark is awarded to individual products, rather than organisations, that meet its criteria – Fairtrade International has a different set of criteria that needs to be met for each type of product More information: Fairtrade.org.uk Fairtrade.net WFTO The World Fair Trade Organisation (WFTO) launched its mark in 2004 to be awarded to qualifying Fair Trade organisation. That’s a key difference to the Fairtrade Mark – the Fairtrade Mark is awarded to qualifying products, but the WFTO mark is awarded to qualifying organisations. WFTO accreditation focusses on the ethos and practices of the organisation as a whole – organisations must demonstrate that that the WFTO’s 10 Fair Trade principles are at the heart of how they do business: 1. Creating opportunities for economically disadvantaged producers 2. Transparency and accountability 3. Fair trading practices 4. Payment of a fair price 5. Ensuring no child labour and forced labour 6. Commitment to non-discrimination, gender equality and freedom of association 7. Ensuring good working conditions 8. Providing capacity building 9. Promoting Fair Trade 10. Respect for the environment Traditionally, the Fairtrade Mark was awarded to commodity products – e.g. coffee, tea, bananas – and the WFTO mark was awarded to manufactured products – e.g. crafts and clothing. However this is beginning to change.

7 Get Paper Industry (GPI)is an example of an organisation
which is a WFTO member Get Paper Industry (GPI) is an example of an organisation which is a member of the World Fair Trade Organisation GPI was established in 1985 GPI is a Napalese cooperative based in Kathmandu which is involved in the manufacturing of hand made paper and paper products(paper bags, gifts, greeting cards). They make these products using waste materials, such as cotton rags, waste paper and agricultural waster. GPI are a Community Fair Trade Supplier of The Body Shop International They conduct various social activities in order to fulfil their social and environmental responsibilities. As a member of WFTO they adopts a fair wage payment policy to their producers and provide employment opportunities to marginalised women and fulfil various other environment responsibilities. General Welfare Prathisthan (GWP) (a sister organisation of GPI) carries out different social activities. They are involved in campaigns to protect girls from trafficking. They also run saving and credit programmes to strengthen the social, educational and economic status of girls, and engage them in various income-generating programmes such as animal rearing and beauty therapy. More information: Gpicoop.org

8 During Fairtrade Fortnight 2014, two representatives from GPI, Mandira Bhattarai and Amisha Bhandaru, visited Scotland from Nepal.

9 a product made by WFTO members is the World Fair Trade Tartan
Another example of a product made by WFTO members is the World Fair Trade Tartan The ‘World Fair Trade Tartan’ was launched on World Fair Trade Day 2017 (13th May 2017) at the Fair Trade Fiesta in Edinburgh where it was presented to Rudi Dalvai, President of the World Fair Trade Organisation and to Dr Alasdair Allan, Scottish Government Minister for International Development and Europe. It was created to celebrate Scotland’s Fair Trade Nation status. The World Fair Trade Tartan has been registered by the Keeper of the Scottish Tartans Register. The first World Fair Trade Tartan will be made and designed by Anak at Villageworks in Cambodia with the first tartan products being sold in the summer of In Scotland, World Fair Trade Tartan has been designed and woven by House of Edgar. Outside of the UK, the tartan is only available to WFTO members to make any tartan products. The World Fair Trade Tartan is the first official Fair Trade Tartan, created as a legacy to Scotland as a Fair Trade Nation. World Fair Trade Tartan has been created to promote Scotland as a  Fair Trade Nation and to benefit WFTO members across the globe. More information: fairtradescotland.co.uk

10 Divine Chocolate is an example of a product with the Fairtrade Mark
Divine was established in 1998 and was the first farmer-owned Fairtrade chocolate bar aimed at the mass market. The exciting business model means that, the co-operative of cocoa farmers of Kuapa Kokoo own shares in the company. Kuapa Kokoo is a co-operative of cocoa farmers in Ghana which was established in 1993, in 1997 the members voted at their AGM to set up their own chocolate company in the UK and the next year Divine Chocolate was born. From the start the co-op was Fairtrade certified. From their 45% ownership of Divine, the farmers have received additional income from the shared profits from Divine, and 2% of the company’s annual turnover. Kuapa Kokoo has invested in water provision, healthcare, education, training, women’s programmers, farming improvements as well as in developing the capacity of its businesses – and has been innovative in many areas, aiming for better conditions and better prospects for its members. More information: Divinechocolate.com

11 In 2014, The Forum invited Isaac Baidoo and Lydia Agyei of the Kuapa Kokoo Co-operative in Ghana, to visit Scotland to discuss their Fair Trade links. They had a varied visit to Scotland including meeting campaigners, civic leaders, Fair Trade shops, college students, school children and members of the Ghanaian community in Scotland.

12 Kilombero rice is an example of a product which is Fairly Traded
Kilombero rice comes from the Karonga district of northern Malawi and is sold in Scotland through Just Trading Scotland (JTS) Rice farming in Malawi is tough, work is mostly conducted using hand-held tools which takes a long time and is hard physical work. They don’t have artificial irrigation and so are entirely dependent on rain patterns. If the rain patterns don’t come as expected, it can ruin a farmer’s entire seasons crop Therefore it’s more expensive, more difficult and more time-consuming to grow rice in Malawi than in other countries, and this is reflected in the retail price of the rice. This means it’s extremely difficult to sell Malawian rice in the UK, because cheaper alternatives are available from other countries. An organisation called NASFAM in Malawi, The National Union of Smallholder Farmers, helps farmers to form themselves into local groups so that they can pool resources and negotiate jointly for better prices. More information: Jts.co.uk

13 In April 2012, The Forum and Just Trading Scotland welcomed two members of the National Smallholder Farmer Association of Malawi to Scotland – Howard Msukwa and Henry Kalomba. Howard volunteers as the chairman of his local farmers’ group. NASFAM then provides farmers’ groups with training and seeds, to help them improve their yields and efficiency. NASFAM also helps the farmers to market their rice and get new contracts. This helps to show the importance of co-operatives in Fair Trade – a way of helping farmers access resources and expertise through pooling resources. In addition to the other benefits gained through Fair Trade, this has helped farmers in Howard’s group to build sustainable businesses. Before Howard started to sell through Fair Trade, he lived in a house made of mud, which is common in rural Malawi, and struggled to afford the fees to send all his children to school. Since he started exporting his rice to Scotland, he’s been able to build a house with brick walls, a corrugated iron roof, a concrete floor and solar power, and he’s been able to send his children to secondary school.

14 Fair Trade Products There are a lot more Fair Trade and Fairly Traded products available than you may realise, of course there is Fair Trade tea, coffee, sugar and bananas but did you know you can also get: Fair Trade cosmetics and beauty products (The Body Shop, Lush, Carishea…) Fair Trade gold Fair Trade flowers Fair Trade sports balls including football and rugby balls (Bala Sport) Fair Trade wine Fair trade phones (Fairphone) Fairtrade cotton uniforms (Koolschools)

15 Fair Trade in Scotland Scotland became a Fair Trade Nation in February 2013 We were the second nation in the world to achieve this In 2017, Scotland was reassessed as a Fair Trade Nation once more Scotland was originally declared a Fair Trade Nation in February 2013 We were the second nation in the world to achieve this after Wales In 2006, the then Scottish Executive and the Welsh Assembly Government collaboratively agreed criteria and additional desirable objectives for Fair Trade Nation Status In 2007, the Scottish Fair Trade Forum was established to coordinate and support a campaign top achieve these criteria In late 2012, the Forum presented a report to an Assessment Panel that set out the case for Scotland to be recognized as a Fair Trade Nation In February 2013 Scotland was declared a Fair Trade Nation. In 2017, Scotland’s Minister for International Development and Europe announced on Wednesday 1 March that Scotland has been assessed as a Fair Trade Nation once more

16 Measurable country-wide criteria Parliament Government
To become a Fair Trade Nation certain essential criteria must be met relating to: Measurable country-wide criteria Parliament Government Measurable Countrywide Criteria 100% of local authority areas have active Fair Trade groups working towards Fairtrade status 55% of local authority areas have Fairtrade status with 10% annual increase in following years All cities have Fairtrade status Minimum 55% of towns (based on GROS figures of towns with a population of 5,000 or more at 2001) have active Fair Trade groups working towards Fairtrade status 60% of higher education institutions have active Fair Trade groups working towards Fairtrade status Increase by 5% each year the proportion of the population who know about Fair Trade (initially a target of 50%, ultimately reaching 75%) 75% of people buying a Fair Trade product every year 40% of people regularly buying Fair Trade products Parliament Annual statement of opinion in support of Fair Trade Use and promote Fairtrade products internally (including Fairtrade tea, coffee, sugar, biscuits) at all meetings Ensure Fairtrade products are available at all catering outlets Actively promote Fairtrade Fortnight each year  Government Use and promote Fairtrade products internally (including Fairtrade tea, coffee, sugar, biscuits) at all meeting Ensure Fairtrade products available at all catering outlets Annual public report on progress of Fair Trade Nation campaign Actively support the promotion and development of Fair Trade including: Seek to develop pro Fair Trade public sector procurement guidance and promote Fair Trade public sector procurement wherever possible Promote Fair Trade in schools through the curriculum, procurement and any other means possible Promote Fair Trade at an international level (where appropriate, a nation should also seek to promote Fair Trade through its international trade agreements) Acknowledge the role of Fair Trade in economic development policies

17 Schools / further education institutions Trade unions
Desirable Objectives Faith groups Schools / further education institutions Trade unions Chamber of Commerce / business networks Fair Trade retailers As well as the essential criteria mentioned there are also additional desirable objectives Resolutions of support, and pledges to use and promote Fairtrade products from major faith groups across the country Schools and further education institutions across the country to sign Fair Trade pledges or become Fair Trade Organisations and pledge to promote and use Fairtrade products internally Trade unions to support and pledge to use and promote Fairtrade products internally and to members Resolutions of support from Chambers of Commerce or business networks to include pledge to use and promote Fairtrade products National Festivals A good number of Fair Trade retailers These desirable objectives were more of a focus in the 2017 assessment when we were renewing our status as a Fair Trade Nation than they were in the 2013 report when we were first assessed as a Fair Trade Nation.

18 Why become a Fair Trade Nation?
Leadership role in challenging global poverty National co-ordination Celebrates progress Encourages other countries Having Fair Trade Nation Status signals to the world that Scotland takes an active leadership role in challenging global poverty, recognising the dignity and rights of producers through a commitment to fairness in international trading It also shows that Fair Trade is being taken seriously at a national level which helps to encourage more people to engage National co-ordination helps to bring efficiency to campaigning Holding the status recognises the progress we have made as a nation Our status can help encourage other countries to follow our lead

19 The future of Fair Trade in Scotland
Role of educational institutions, business, public sector, voluntary sector Procurement SDGs Other areas of work which will help to push forward the Scottish Fair Trade Nation campaign: The role of educational institutions, business and the public, private and voluntary sectors and how we work with them Further progress on procurement Support for Fair Trade businesses (suppliers and retailers) in Scotland Ways of further supporting links with Fair Trade producers that empower communities in Scotland and the developing world The development of the capacity of supporters and campaigners in order to strengthen the sustainability of the campaign Co-ordination with the Sustainable Development Goals The future celebration of Scotland as a Fair Trade Nation Further innovation in approaches

20 The future of Fair Trade beyond Scotland
Development of the Fair Trade Nation idea globally In 2017 Northern Ireland became a Fairtrade Region Development of the Fair Trade Nation ideal globally The original criteria for the Fair Trade Nation status were established in 2006 by representatives from Scotland and Wales Since the criteria was established, there has been interest in Fair Trade Nations and Regions as a concept from campaigners in different parts of the world. The Forum has had contact with campaigners and organisation from other parts of the UK as well as Spain, Canada, Croatia, Ecuador, Sweden, the Netherlands, Poland, Ireland and Belgium as well as engagement with the European Fair Trade Advocacy Office and WFTO In 2017 Northern Ireland became a Fairtrade Region – those leading the campaign in Northern Ireland drew heavily on the Scottish / Welsh criteria and had discussion about the process with the Forum to establish the best way for them to set and achieve the criteria. In September 2016, the Forum hosted a seminar in Glasgow with representatives from nations and regions in Europe and North America to discuss: the value of becoming a Fair Trade Nation; developing Fair Trade Nation criteria; assessment methods; developing a network for sharing practice; raising the profile of Fair Trade Nations and regions; and resourcing the campaigns As the interest in Fair Trade Nations and Regions spreads, it will become more important to develop a shared understanding of the purpose, nature and assessment of the status globally. The diversity of Fair Trade globally and the campaigns in different parts of the world means this process will be challenging but also offers huge opportunities to develop and grow Fair Trade and it impact and for Scotland and the Forum to play a leading role in this. Having Fair Trade Nation Status signals to the world that Scotland takes an active leadership role in challenging global poverty, recognising the dignity and rights of producers through a commitment to fairness in international trading It also shows that Fair Trade is being taken seriously at a national level which helps to encourage more people to engage National co-ordination helps to bring efficiency to campaigning Holding the status recognises the progress we have made as a nation Our status can help encourage other countries to follow our lead

21 Fair Trade Communities
Fair Trade has been so successful thanks to campaigners spreading the word about it Thousands of people across the country have for many years been carrying out simple activities in their communities: speaking to local businesses and organisations, contacting big multinational companies and supermarkets and asking them to support Fair Trade and putting on events for their local community to find out about Fair Trade products These simple activities have been so effective that it’s created an entire movement – this goes to show that no matter how big you feel the challenge is you can do something about the injustices that you see, and by joining together and coordinating this action between campaigners, we can make these activities even more effective. In 2000, the town of Garstang in Lancashire, England, declared itself the world’s first ‘Fairtrade Town’ -this was the culmination of a campaign that had begun in the town in 1994, led by the local Oxfam campaigning group This was a significant milestone in the Fair Trade campaigning movement, because this is the moment that communities became involved in raising awareness Of the 156 towns in Scotland, 89 either have Fairtrade status or have active groups working towards achieving this. Communities are awarded the status if they can show the Fairtrade Foundation that there is lots of support locally for Fair Trade By ensuring that campaigning was taking place in towns and villages throughout the UK rather than just at a national level, many feel that the Fairtrade Town movement has been instrumental in making Fair Trade so successful Fairtrade town activities tend to focus on community engagement, with Fairtrade Zone activities often taking amore strategic approach by engaging organisations and working closely with the local authority to garner zone-wide support and commitment for Fair Trade

22 What can I do to support Fair Trade?
There is a whole host of different things that you can do to support Fair Trade either as an individual or as part of your Local Fair Trade Group! Some suggestions could include: Buy Fair Trade products and encourage friends and family to buy Fair Trade products Join a local Fair Trade group or if there is not a local group then start your own! Engage with shops and business about supporting Fair Trade Campaign online using social media Run information stalls at local fairs and events Put on an event in your local area such as a Fair Trade food sampling session or a Fair Trade wine tasting Talk to your local councillors, MSPs and MP Work with other local groups in your area Attend Fair Trade events such as events hosted by the Forum or by local groups in your area

23 Any Questions? www.sftf.org.uk communities@sftf.org.uk


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