Fair trade is an organized social movement and market-based approach to alleviating global poverty and promoting sustainability. For the town with a similar name see Quinua Peru. "Quinoa" is also a title of a 1992 music album by Tangerine Dream. For a topic outline on this subject see List of basic Ecuador topics. Social movements are a type of group action. They are large informal groupings of Individuals and/or Organizations focused on specific The movement advocates the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of goods. It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, and flowers. Handicraft, also known as craftwork or simply Craft, is a type of work where useful and decorative devices are made completely by hand or using only simple tools CoFFEE is an Open source Software for computer supported collaborative learning (CSCL in a digital classroom Cocoa is the dried and fully fermented fatty seed of the cacao tree from which Chocolate is made Sugar is a class of edible Crystalline substances mainly Sucrose, Lactose, and Fructose. Tea refers to the cured agricultural product of the leaves leaf buds and internodes of Camellia sinensis, which have been prepared and cured for the market For the fruit see Banana. For other meanings see Banana (disambiguation. Honey is a sweet and Viscous fluid produced by Honey bees (and some other species and derived from the nectar of Flowers According to the Cotton is a soft staple Fibre that grows around the seeds of the cotton plant ( Gossypium sp Wine is an Alcoholic beverage made from the fermentation of Grape juice
Fair trade's strategic intent is to deliberately work with marginalized producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency. It also aims at empowering them to become stakeholders in their own organizations and actively play a wider role in the global arena to achieve greater equity in international trade. International trade is exchange of Capital, Goods, and Services across International borders or Territories.
Fair trade proponents include a wide array of international religious, development aid, social and environmental organizations such as Oxfam, Amnesty International, and Caritas International. Oxfam International is a confederation of 13 organizations working with over 3000 partners in more than 100 countries to find lasting solutions to poverty and injustice Amnesty International (commonly known as Amnesty or AI) is a Western based international Non-governmental organization which defines its mission as "to Caritas Internationalis is a confederation of 162 Catholic relief, development and social service organisations operating in over 200 countries and territories
Like most developmental efforts, fair trade has proven itself controversial and has drawn criticism from both ends of the political spectrum. This article is about international development See the closely related concept of development cooperation. A political spectrum (plural Spectra) is a way of modeling different political positions by placing them upon one or more geometric axes Some economists and conservative think tanks see fair trade as a type of subsidy. A think tank (also called a policy institute) is an organization institute corporation or group that conducts Research and engages in advocacy in areas such In Economics, a subsidy (also known as a subvention is a form of financial assistance paid to a business or economic sector Segments of the left criticize fair trade for not adequately challenging the current trading system.
In 2007, Fair trade certified sales amounted to approximately €2. Fairtrade (one word redirects here For the more general article on the fair trade movement see Fair trade (two words 3 billion (US $3. 62 billion) worldwide, a 47% year-to-year increase. [1] While this represents less than one hundredth of a percentage point of world trade in physical merchandise,[2] fair trade products generally account for 0. 5-5% of all sales in their product categories in Europe and North America. [3] In May 2008, over 1. 5 million disadvantaged producers worldwide were directly benefiting from fair trade while an additional 5 million benefited from fair trade funded infrastructure and community development projects. [4]
In 2001, a common definition of fair trade was developed by FINE, an informal association of four international fair trade networks (Fairtrade Labelling Organizations International, International Fair Trade Association, Network of European Worldshops and European Fair Trade Association):[5]
Fair trade is a trading partnership, based on dialogue, transparency and respect, which seeks greater equity in international trade. FINE was created in 1998 and is an informal association of the four main Fair Trade networks F Fairtrade Labelling Organizations International Fairtrade Labelling Organizations International (FLO was established in 1997, and is an association of 3 producer networks and 20 national labelling initiatives that promote The International Fair Trade Association (IFAT was created in 1989 and is a global association of nearly 300 organizations in over 60 countries Network of European Worldshops (NEWS! was established in 1994 and coordinates the cooperation between Worldshops in Europe. European Fair Trade Association is a Dutch association established in 1990. 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.
Fair trade advocates generally support one or more of the following principles and practices in trading relationships:[6]
Most fair trade import organizations are members or certified by one or several national or international federations. These federations coordinate, promote and facilitate the work of fair trade organizations. The following are the largest and most influential:
In 1998, these four federations created together FINE, an informal association whose goal is to harmonize fair trade standards and guidelines, increase the quality and efficiency of fair trade monitoring systems and advocate fair trade politically. FINE was created in 1998 and is an informal association of the four main Fair Trade networks F Fairtrade Labelling Organizations International
Student groups have also been increasingly active in the past years promoting fair trade products both on their campuses and their communities. Although hundreds of independent student organizations are active worldwide, most groups in North America are either affiliated with United Students for Fair Trade (USA) or the Canadian Student Fair Trade Network (Canada).
The first attempts to commercialize fair trade goods in Northern markets were initiated in the 1940s and 1950s by religious groups and various politically oriented non-governmental organizations (NGOs). The Fair trade movement as we know today has undergone several important changes since its early days following World War II Ten Thousand Villages, an NGO within the Mennonite Central Committee (MCC) and SERRV International were the first, in 1946 and 1949 respectively, to develop fair trade supply chains in developing countries. Ten Thousand Villages is a nonprofit Fair trade organization that markets handcrafted products made by disadvantaged artisans from more than 120 artisan groups in 35 countries The Mennonite Central Committee (MCC is a relief service and peace agency representing 15 Mennonite, Brethren in Christ and Amish bodies in North SERRV International is a 501(c(3 nonprofit Alternative trading organization operating in the United States and in Africa Asia and Latin America [7] The products, almost exclusively handicrafts ranging from jute goods to cross-stitch work, were mostly sold in churches or fairs. Handicraft, also known as craftwork or simply Craft, is a type of work where useful and decorative devices are made completely by hand or using only simple tools Jute is a long soft shiny Vegetable fiber that can be spun into coarse strong threads This article is about the embroidery style called cross-stitch or counted cross-stitch The goods themselves had often no other function than to indicate that a donation had been made. [8]
The current fair trade movement was shaped in Europe in the 1960s. Fair trade during that period was often seen as a political gesture against neo-imperialism: radical student movements began targeting multinational corporations and concerns that traditional business models were fundamentally flawed started to emerge. The slogan at the time, “Trade not Aid”, gained international recognition in 1968 when it was adopted by the UNCTAD (United Nations Conference on Trade and Development) to put the emphasis on the establishment of fair trade relations with the developing world. The United Nations Conference on Trade and Development ( UNCTAD) was established in 1964 as a permanent intergovernmental body The United Nations Conference on Trade and Development ( UNCTAD) was established in 1964 as a permanent intergovernmental body [9]
The year 1965 saw the creation of the first Alternative Trading Organization (ATO): that year, British NGO Oxfam launched "Helping-by-Selling", a program which sold imported handicrafts in Oxfam stores in the UK and from mail-order catalogues. An alternative trading organization (ATO is usually a Non-governmental organization (NGO or mission-driven business aligned with the Fair trade movement aiming The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located Oxfam International is a confederation of 13 organizations working with over 3000 partners in more than 100 countries to find lasting solutions to poverty and injustice The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located [10]
In 1969, the first Worldshop opened its doors in the Netherlands. Worldshops, world shops or Fair Trade Shops are specialized retail outlets offering and promoting Fair Trade products The initiative aimed at bringing the principles of fair trade to the retail sector by selling almost exclusively goods produced under fair trade terms in “underdeveloped regions”. The first shop was run by volunteers and was so successful that dozens of similar shops soon went into business in the Benelux countries, Germany and in other Western European countries. The Benelux is an economic union in Western Europe that includes three neighboring monarchies, '''Be'''lgium, the '''Ne'''therlands, and Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe.
Throughout the 1960s and 1970s, important segments of the fair trade movement worked to find markets for products from countries that were excluded from the mainstream trading channels for political reasons. Thousands of volunteers sold coffee from Angola and Nicaragua in Worldshops, in the back of churches, from their homes and from stands in public places, using the products as a vehicle to deliver their message: give disadvantaged producers in developing countries a fair chance on the world’s market, and you support their self-determined sustainable development. Angola, officially the Republic of Angola (República de Angola Pronounced ʁɛˈpublikɐ dɨ ɐ̃ˈgɔlɐ Repubilika ya Ngola is a country in south-central Nicaragua (ˌnɪkəˈrɑgwə officially the Republic of Nicaragua () is a representative democratic republic and the largest nation in Central America The alternative trade movement blossomed, if not in sales, then at least in terms of dozens of ATOs being established on both sides of the Atlantic, of scores of Worldshops being set up, and of well-organized actions and campaigns attacking exploitation and foreign domination, and promoting the ideals of Nelson Mandela, Julius Nyerere and the Nicaraguan Sandinistas: the right to independence and self-determination, to equitable access to the world’s markets and consumers. An alternative trading organization (ATO is usually a Non-governmental organization (NGO or mission-driven business aligned with the Fair trade movement aiming Nelson Rolihlahla Mandela (xolíɬaɬa mandéːla born 18 July 1918 is a former President of South Africa, the first to be elected in fully representative Julius Kambarage Nyerere ( April 13, 1922 - October 14, 1999) served as the first President of Tanzania and previously Tanganyika The Sandinista National Liberation Front ( Frente Sandinista de Liberación Nacional) is a socialist Nicaraguan Political party.
In the early 1980s, Alternative Trading Organizations faced a major challenge: the novelty of some fair trade products started wearing off, demand reached a plateau and some handicrafts began to look “tired and old fashioned” in the marketplace. [11]The decline of segments of the handicrafts market forced fair trade supporters to rethink their business model and their goals. Moreover, fair trade supporters during this period became increasingly worried by the impact of the fall of agricultural commodity prices on poor producers. A commodity is anything for which there is demand but which is supplied without qualitative differentiation across a market Many then believed it was the movement's responsibility to address the issue and to find innovative remedies to react to the ongoing crisis in the industry.
In the subsequent years, fair trade agricultural commodities played an important role in the growth of many ATOs: successful on the market, they offered a much-needed, renewable source of income for producers and provided Alternative Trading Organizations a perfect complement to the handicrafts market. An alternative trading organization (ATO is usually a Non-governmental organization (NGO or mission-driven business aligned with the Fair trade movement aiming The first fair trade agricultural products were tea and coffee, quickly followed by dried fruits, cocoa, sugar, fruit juices, rice, spices and nuts. Tea refers to the cured agricultural product of the leaves leaf buds and internodes of Camellia sinensis, which have been prepared and cured for the market CoFFEE is an Open source Software for computer supported collaborative learning (CSCL in a digital classroom The term fruit has different meanings dependent on context and the term is not synonymous in Food preparation and Biology. JUICE is a widely used non-commercial Software package for editing and analysing phytosociological data Rice is a Cereal foodstuff which forms an important part of the diet of many people worldwide and as such it is a staple food for many A spice is a dried Seed, Fruit, Root, Bark or vegetative substance used in Nutritionally insignificant quantities as a Food additive Nut is a general term for the large dry oily Seeds or Fruit of some Plants. While in 1992, a sales value ratio of 80 % handcrafts to 20 % agricultural goods was the norm, in 2002 handcrafts amounted to 25. 4 % of fair trade sales while commodity food lines were up at 69. 4 %. [12]
Sales of fair trade products only really took off with the arrival of the first Fairtrade labelling initiatives. Fairtrade (one word redirects here For the more general article on the fair trade movement see Fair trade (two words Although buoyed by ever growing sales, fair trade had been generally contained to relatively small Worldshops scattered across Europe and to a lesser extent, North America. Some felt that these shops were too disconnected from the rhythm and the lifestyle of contemporary developed societies. The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers. The only way to increase sale opportunities was to start offering fair trade products where consumers normally shop, in large distribution channels. [13] The problem was to find a way to expand distribution without compromising consumer trust in fair trade products and in their origins.
A solution was found in 1988, when the first Fairtrade labelling initiative, Max Havelaar, was created in the Netherlands under the initiative of Nico Roozen, Frans Van Der Hoff and Dutch development NGO Solidaridad. Fairtrade (one word redirects here For the more general article on the fair trade movement see Fair trade (two words Stichting Max Havelaar (or the Max Havelaar Foundation in English is the Dutch member of FLO International, which unites 23 Fairtrade producer Nico Roozen (1953- is a Dutch economist who in collaboration with Frans van der Hoff and Ecumenical Development agency Solidaridad Frans van der Hoff (1939- or Francisco VanderHoff Boersma as he is called in Latin America is a Dutch Missionary who in collaboration with Nico Roozen For other uses of the name Solidaridad or Solidarity see Solidarity (disambiguation. The independent certification allowed the goods to be sold outside the Worldshops and into the mainstream, reaching a larger consumer segment and boosting fair trade sales significantly. The labeling initiative also allowed customers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the producers at the end of the supply chain. Fairtrade (one word redirects here For the more general article on the fair trade movement see Fair trade (two words A supply chain or logistics network is the system of organizations people technology activities information and resources involved in moving a product or service from [14]
The concept caught on: in the ensuing years, similar non-profit Fairtrade labelling organizations were set up in other European countries and North America. In 1997, a process of convergence among labelling organizations – or “LIs” (for “Labelling Initiatives”) – led to the creation of Fairtrade Labelling Organizations International. Fairtrade Labelling Organizations International (FLO was established in 1997, and is an association of 3 producer networks and 20 national labelling initiatives that promote FLO is an umbrella organization whose mission is to set the Fairtrade standards, support, inspect and certify disadvantaged producers and harmonize the Fairtrade message across the movement. Fairtrade Labelling Organizations International (FLO was established in 1997, and is an association of 3 producer networks and 20 national labelling initiatives that promote
In 2002, FLO launched for the first time an International Fairtrade Certification Mark. Fairtrade Labelling Organizations International (FLO was established in 1997, and is an association of 3 producer networks and 20 national labelling initiatives that promote International Fairtrade Certification Mark is an independent Certification mark used in over 50 countries The goals of the launch were to improve the visibility of the Mark on supermarket shelves, facilitate cross border trade and simplify procedures for both producers and importers. At present, the certification mark is used in over 50 countries and on dozens of different products, based on FLO’s certification for coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, honey, fruit juices, nuts, fresh fruit, quinoa, herbs and spices, wine and footballs etc. CoFFEE is an Open source Software for computer supported collaborative learning (CSCL in a digital classroom Tea refers to the cured agricultural product of the leaves leaf buds and internodes of Camellia sinensis, which have been prepared and cured for the market Rice is a Cereal foodstuff which forms an important part of the diet of many people worldwide and as such it is a staple food for many For the fruit see Banana. For other meanings see Banana (disambiguation. Mangoes belong to the genus Mangifera, consisting of numerous species of tropical fruiting Trees in the Flowering plant family Anacardiaceae Cocoa is the dried and fully fermented fatty seed of the cacao tree from which Chocolate is made Cotton is a soft staple Fibre that grows around the seeds of the cotton plant ( Gossypium sp Sugar is a class of edible Crystalline substances mainly Sucrose, Lactose, and Fructose. Honey is a sweet and Viscous fluid produced by Honey bees (and some other species and derived from the nectar of Flowers According to the JUICE is a widely used non-commercial Software package for editing and analysing phytosociological data Nut is a general term for the large dry oily Seeds or Fruit of some Plants. The term fruit has different meanings dependent on context and the term is not synonymous in Food preparation and Biology. For the town with a similar name see Quinua Peru. "Quinoa" is also a title of a 1992 music album by Tangerine Dream. A(n herb (ˈhɝb or /ˈɝb/ see pronunciation differences) is a plant that is valued for qualities such as medicinal properties flavor scent or the like A spice is a dried Seed, Fruit, Root, Bark or vegetative substance used in Nutritionally insignificant quantities as a Food additive Wine is an Alcoholic beverage made from the fermentation of Grape juice A football is a Ball used to play one of the various sports known as Football.
Global fair trade sales have soared over the past decade. The increase has been particularly spectacular among Fairtrade labelled goods: in 2007, these sales amounted to approximately €2. 3 billion (US $3. 62 billion) worldwide, a 47% year-to-year increase. [15] As per December 2006, 569 producer organizations in 58 developing countries were FLO-CERT Fairtrade certified and over 150 were IFAT registered. FLO-CERT is the inspection and certification body for labelled Fairtrade. The International Fair Trade Association (IFAT was created in 1989 and is a global association of nearly 300 organizations in over 60 countries . [16][17]
Note: Customary spelling of Fairtrade is one word when referring to the FLO product labeling system
Fairtrade labelling (usually simply Fairtrade or Fair Trade Certified in the US) is a certification system designed to allow consumers to identify goods which meet agreed standards. International Fairtrade Certification Mark is an independent Certification mark used in over 50 countries Transfaircanadagif|thumb|100px|right| Canadian Fair Trade Certified Mark]]The Fair Trade Certified Mark is a certification mark used in Canada and in the United The United States of America —commonly referred to as the Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page Fairtrade (one word redirects here For the more general article on the fair trade movement see Fair trade (two words Transfaircanadagif|thumb|100px|right| Canadian Fair Trade Certified Mark]]The Fair Trade Certified Mark is a certification mark used in Canada and in the United The United States of America —commonly referred to as the Overseen by a standard-setting body (FLO International) and a certification body (FLO-CERT), the system involves independent auditing of producers and traders to ensure the agreed standards are met. FLO International is a non-profit multi-stakeholder association involving 23 member organizations (labelling Initiatives and producer networks traders and external experts FLO-CERT is the inspection and certification body for labelled Fairtrade.
For a product to carry either the International Fairtrade Certification Mark or the Fair Trade Certified Mark, it must come from FLO-CERT inspected and certified producer organizations. International Fairtrade Certification Mark is an independent Certification mark used in over 50 countries Transfaircanadagif|thumb|100px|right| Canadian Fair Trade Certified Mark]]The Fair Trade Certified Mark is a certification mark used in Canada and in the United FLO-CERT is the inspection and certification body for labelled Fairtrade. The crops must be grown and harvested in accordance with the international Fairtrade standards set by FLO International. FLO International is a non-profit multi-stakeholder association involving 23 member organizations (labelling Initiatives and producer networks traders and external experts The supply chain must also have been monitored by FLO-CERT, to ensure the integrity of labelled products. A supply chain or logistics network is the system of organizations people technology activities information and resources involved in moving a product or service from FLO-CERT is the inspection and certification body for labelled Fairtrade.
Fairtrade certification guarantees not only fair prices, but also the principles of ethical purchasing. Fairtrade (one word redirects here For the more general article on the fair trade movement see Fair trade (two words Ethical consumerism is buying products and services that are made ethically. These principles include adherence to ILO agreements such as those banning child and slave labour, guaranteeing a safe workplace and the right to unionise, adherence to the United Nations charter of human rights, a fair price that covers the cost of production and facilitates social development, and protection and conservation of the environment. The International Labour Organization As a social-economic system slavery is a legal institution under which a Person (called "a slave" is compelled to work for another A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages hours and working conditions forming The United Nations ( UN) is an International organization whose stated aims are to facilitate cooperation in International law, International security Human rights refers to the "basic Rights and freedoms to which all humans are entitled The Fairtrade certification system also promotes long-term business relationships between buyers and sellers, crop prefinancing and greater transparency throughout the supply chain and more.
The Fairtrade certification system covers a growing range of products, including bananas, honey, coffee, oranges, cocoa, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea and wine. Fairtrade (one word redirects here For the more general article on the fair trade movement see Fair trade (two words For the fruit see Banana. For other meanings see Banana (disambiguation. Honey is a sweet and Viscous fluid produced by Honey bees (and some other species and derived from the nectar of Flowers According to the CoFFEE is an Open source Software for computer supported collaborative learning (CSCL in a digital classroom An orange —specifically the sweet orange —is the Citrus fruit Citrus sinensis ( syn Cocoa is the dried and fully fermented fatty seed of the cacao tree from which Chocolate is made Cotton is a soft staple Fibre that grows around the seeds of the cotton plant ( Gossypium sp For the town with a similar name see Quinua Peru. "Quinoa" is also a title of a 1992 music album by Tangerine Dream. Rice is a Cereal foodstuff which forms an important part of the diet of many people worldwide and as such it is a staple food for many A spice is a dried Seed, Fruit, Root, Bark or vegetative substance used in Nutritionally insignificant quantities as a Food additive Sugar is a class of edible Crystalline substances mainly Sucrose, Lactose, and Fructose. Tea refers to the cured agricultural product of the leaves leaf buds and internodes of Camellia sinensis, which have been prepared and cured for the market Wine is an Alcoholic beverage made from the fermentation of Grape juice Companies offering products that meet the Fairtrade standards may apply for licences to use one of the Fairtrade Certification Marks for those products. Fairtrade (one word redirects here For the more general article on the fair trade movement see Fair trade (two words
The International Fairtrade Certification Mark was launched in 2002 by FLO, and replaced twelve Marks used by various Fairtrade labelling initiatives. International Fairtrade Certification Mark is an independent Certification mark used in over 50 countries Fairtrade Labelling Organizations International (FLO was established in 1997, and is an association of 3 producer networks and 20 national labelling initiatives that promote The new Certification Mark is currently used worldwide (with the exception of Canada and the United States).
The Fair Trade Certified Mark, used in Canada and in the United States, also still identifies Fairtrade goods in both countries. Transfaircanadagif|thumb|100px|right| Canadian Fair Trade Certified Mark]]The Fair Trade Certified Mark is a certification mark used in Canada and in the United Full transition to the new Mark should become reality in the future as it gradually replaces the old Certification Marks in both countries.
In an effort to complement the Fairtrade product certification system and allow most notably handcraft producers to also sell their products outside worldshops, the International Fair Trade Association (IFAT) launched in 2004 a new Mark to identify fair trade organizations (as opposed to products in the case of FLO International and Fairtrade). The International Fair Trade Association (IFAT was created in 1989 and is a global association of nearly 300 organizations in over 60 countries Worldshops, world shops or Fair Trade Shops are specialized retail outlets offering and promoting Fair Trade products The International Fair Trade Association (IFAT was created in 1989 and is a global association of nearly 300 organizations in over 60 countries FLO International is a non-profit multi-stakeholder association involving 23 member organizations (labelling Initiatives and producer networks traders and external experts Fairtrade (one word redirects here For the more general article on the fair trade movement see Fair trade (two words Called the FTO Mark, it allows consumers to recognize registered Fair Trade Organizations worldwide and guarantees that standards are being implemented regarding working conditions, wages, child labour and the environment.
The FTO Mark gave for the first time all Fair Trade Organizations (including handcrafts producers) definable recognition amongst consumers, existing and new business partners, governments and donors. Handicraft, also known as craftwork or simply Craft, is a type of work where useful and decorative devices are made completely by hand or using only simple tools
Several independent studies have recently measured the impact of fair trade on disadvantaged farmers and workers. Several independent studies have measured the impact of Fair trade on disadvantaged farmers and workers The following studies are described and discussed on the Fair trade impact studies page. Several independent studies have measured the impact of Fair trade on disadvantaged farmers and workers
As early as 1994, the European Commission prepared the “Memo on alternative trade” in which it declared its support for strengthening Fair Trade in the South and North and its intention to establish an EC Working Group on Fair Trade. History The area that is now Derbyshire was first visited probably briefly by humans 200000 years ago during the Aveley Interglacial as evidenced by a Middle Furthermore, the same year, the European Parliament adopted the “Resolution on promoting fairness and solidarity in North South trade” (OJ C 44, 14. The European Parliament ( Europarl or EP) is the only directly elected parliamentary institution of the European Union (EU 2. 1994), a resolution voicing its support for fair trade.
In 1996, the Economic and Social Committee adopted an “Opinion on the European “Fair Trade” marking movement”. The European Economic and Social Committee (EESC is a body of the European Union (EU established in 1957 A year later, in 1997, the document was followed by a resolution adopted by the European Parliament, calling on the Commission to support Fair Trade banana operators. The European Commission (formally the Commission of the European Communities) is the executive branch of the European Union. For the fruit see Banana. For other meanings see Banana (disambiguation. The same year, the European Commission published a survey on “Attitudes of EU consumers to Fair Trade bananas”, concluding that Fair Trade bananas would be commercially viable in several EU Member States. [18]
In 1998, the European Parliament adopted the “Resolution on Fair Trade” (OJ C 226/73, 20. 07. 1998), which was followed by the Commission in 1999 that adopted the “Communication from the Commission to the Council on “Fair Trade” COM(1999) 619 final, 29. 11. 1999.
In 2000, public institutions in Europe started purchasing Fairtrade Certified coffee and tea. Furthermore, that year, the Cotonou Agreement made specific reference to the promotion of Fair Trade in article 23 g) and in the Compendium. The Cotonou Agreement is a Treaty between the European Union and the group of African Caribbean and Pacific states ( ACP countries) The European Parliament and Council Directive 2000/36/EC also suggested promoting Fair Trade. [18]
In 2001 and 2002, several other EU papers explicitly mentioned fair trade, most notably the 2001 Green Paper on Corporate Social Responsibility and the 2002 Communication on Trade and Development. Corporate social responsibility (CSR also called corporate responsibility corporate citizenship responsible business and corporate social opportunity is a concept whereby Organizations
In 2004, the European Union adopted the “Agricultural Commodity Chains, Dependence and Poverty – A proposal for an EU Action Plan”, with a specific reference to the Fair Trade movement which has “been setting the trend for a more socio-economically responsible trade. The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in ” (COM(2004)0089).
In 2005, in the European Commission communication “Policy Coherence for Development – Accelerating progress towards attaining the Millennium Development Goals”, (COM(2005) 134 final, 12. 04. 2005), Fair Trade is mentioned as “a tool for poverty reduction and sustainable development”. [18]
And finally, on July 6, 2006, the European Parliament unanimously adopted a resolution on Fair Trade, recognizing the benefits achieved by the Fair Trade movement, suggesting the development of an EU-wide policy on Fair Trade, defining criteria that need to be fulfilled under Fair Trade to protect it from abuse and calling for greater support to Fair Trade (EP resolution “Fair Trade and development”, 6 July 2006)
"This resolution responds to the impressive growth of Fair Trade, showing the increasing interest of European consumers in responsible purchasing," said Green MEP Frithjof Schmidt during the plenary debate. Events 1044 - The Battle of Ménfő takes place 1189 - Richard the Lionheart is crowned King of England Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. The European Green Party (or European Greens or EGP) is the Green Political party at European level. Frithjof Schmidt (b [April] 1953, Bad Harzburg) is a German politician and Member of the European Parliament for Alliance '90/The Greens Peter Mandelson, EU Commissioner for External Trade, responded that the resolution will be well-received at the Commission. Peter Benjamin Mandelson (born 21 October 1953 called "Mandy" by much of the British News media, is a British Labour Politician who is the serving The European Commission (formally the Commission of the European Communities) is the executive branch of the European Union. "Fair Trade makes the consumers think and therefore it is even more valuable. We need to develop a coherent policy framework and this resolution will help us. "[19]
Belgian lawmakers discussed as early as 2006 a possible legislation on fair trade. The Kingdom of Belgium is a Country in northwest Europe. It is a founding member of the European Union and hosts its headquarters as well as those In January 2008, lawmakers proposed possible definitions and three proposals were debated. A consensus on a common definition, however, has not yet been reached. [20]
In 2005, French parliament member Antoine Herth issued the report “40 proposals to sustain the development of Fair Trade”. This article is about the country For a topic outline on this subject see List of basic France topics. The French National Assembly. The other is the Senate ( “Sénat”) The report was followed the same year by a law, proposing to establish a Commission to recognize Fair Trade Organisations (article 60 of law no. 2005-882, Small and Medium Enterprises, 2 August 2005). [21]
In parallel to the legislative developments, also in 2006, the French chapter of ISO (AFNOR) adopted a reference document on Fair Trade after five years of discussion. This article is about the country For a topic outline on this subject see List of basic France topics.
In 2006, Italian lawmakers started debating how to introduce a law on fair trade in Parliament. Italy (Italia officially the Italian Republic, (Repubblica Italiana is located on the Italian Peninsula in Southern Europe, and on the two largest The Parliament of Italy ( Parlamento Italiano) is the national parliament of Italy. A consultation process involving a wide range of stakeholders was launched early October. [22] A common definition of fair trade was most notably developed. However, its adoption is still pending as the efforts were stalled by the 2008 Italian political crisis. On 24 January 2008 Prime Minister of Italy Romano Prodi lost a vote of confidence in the Senate by a vote of 161 to 156
The Dutch province of Groningen was sued in 2007 by coffee supplier Douwe Egberts for explicitly requiring its coffee suppliers to meet fair trade criteria, most notably the payment of a minimum price and a development premium to producer cooperatives. Groningen is the northeasternmost province of the Netherlands. Douwe Egberts (often abbreviated as DE is a Dutch corporation that processes and trades Coffee, Tea, and other groceries Douwe Egberts, which sells a number of coffee brands under self-developed ethical criteria, believed the requirements were discriminatory. After several months of discussions and legal challenges, the province of Groningen prevailed in a well-publicized judgement. Coen de Ruiter, director of the Max Havelaar Foundation, called the victory a landmark event: "it provides governmental institutions the freedom in their purchasing policy to require suppliers to provide coffee that bears the fair trade criteria, so that a substantial and meaningful contribution is made in the fight against poverty through the daily cup of coffee". Stichting Max Havelaar (or the Max Havelaar Foundation in English is the Dutch member of FLO International, which unites 23 Fairtrade producer [23]
In 2007, both Scottish and Welsh governments were actively attempting to become the "world's first fair trade country". In Wales, the campaign to make Wales the world’s first Fair Trade country was launched in 2004 by the National Assembly for Wales. The National Assembly for Wales (Cynulliad Cenedlaethol Cymru is a devolved assembly with power to make legislation in Wales. [24] In Scotland, First Minister Jack McConnell pledged that Scotland will aim to become a "Fair Trade Nation". Jack Wilson McConnell (born June 30, 1960 in Irvine, North Ayrshire) is a former First Minister of Scotland, leader of Fairtrade Town is a marketing tool in which this status is awarded by a recognized Fairtrade certification body (i [25]
In June 2007, a parliamentary committee published the report Fair Trade and Development, criticising the government for "failing to adequately support fair trade despite having said it wanted to help poor countries trade their way out of poverty". See also Committee A Select Committee is a committee made up of a small number of parliamentary members appointed to deal with particular areas or issues The MPs, led by Malcolm Bruce, said the Department for International Development "had not kept pace with growing support for fair trade among the public and retailers". Malcolm Bruce, MP (born November 17, 1944) is a Scottish Liberal Democrat Politician. The Department For International Development (DFID is a United Kingdom Government department, the function of which is " to promote sustainable development
The committee report examined several ethical trading schemes and concluded that fair trade was "gold standard in terms of trading relations with producers". It called for greater support both domestically and internationally of fair trade organisations and recommended making a senior official responsible for fair trade within the government. The report also suggested to commission research on the feasibility of a labelling scheme which will force all retailers to show how much they paid farmers and workers in the developing world for each particular product. [26]
Implicit and often explicit in fair trade is a criticism of the current organization of international trade as being "unfair". Rice is a Cereal foodstuff which forms an important part of the diet of many people worldwide and as such it is a staple food for many The Kingdom of Thailand (ˈtaɪlænd ราชอาณาจักรไทย, râːtɕʰa-ʔaːnaːtɕɑ̀k-tʰɑj Fair trade advocates argue in favor of the need for fair trade by mentioning the purported microeconomic market failures of the current system and an alleged commodity crisis and its impact on developing country producers. Microeconomics is a branch of Economics that studies how individuals households and firms and some states make decisions to allocate limited resources typically in markets Market failure is a concept within economic theory wherein the allocation of goods and services by a Free market is not efficient. Developing countries are countries that haven't reached Western-style standards of democratic government free market economy industrialization social programs and human rights guaranties
All FINE members and fair trade federations support in theory the principles of unhindered free trade. FINE was created in 1998 and is an informal association of the four main Fair Trade networks F Fairtrade Labelling Organizations International Free trade is a system in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions However, as Alex Nicholls, social entrepreneurship professor at Oxford University, states, the "key conditions on which classical and neo-liberal trade theories are based are notably absent in rural agricultural societies in many developing countries. Dr Alex Nicholls MBA is the first lecturer in social entrepreneurship appointed at the University of Oxford and was the first staff member of the Skoll Centre for Social The University of Oxford (informally "Oxford University" or simply "Oxford" located in the city of Oxford, Oxfordshire, England is the Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world Originally coined by its critics and opponents " neoliberalism " is a label referring to the recent reemergence of Economic liberalism or Classical liberalism Rural areas can be large and isolated (also referred to as "the country" and/or "the countryside over the course of time Developing countries are countries that haven't reached Western-style standards of democratic government free market economy industrialization social programs and human rights guaranties "[27] Perfect market information, perfect access to markets and credit, and the ability to switch production techniques and outputs in response to market information are fundamental assumptions which "are fallacious in the context of agricultural producers and workers in developing countries". Credit is the provision of resources (such as granting a Loan) by one party to another party where that second party does not reimburse the first party immediately thereby generating [27]
The example of coffee is particularly telling: "since it takes from three to four years for a coffee plant to produce significant quantities of coffee, and up to seven years before the plant reaches peak productivity, it is difficult for coffee farmers to react quickly to price fluctuations. As a result, coffee supply often increases even as market prices plummet. Further, this leads to a collective action problem, where each farmer has an incentive to increase production as price falls in order to reduce per unit cost and increase his or her margins. In aggregate, this activity creates a negative feedback loop and further depresses the world price. "[28]
According to Fair trade proponents, this example clearly shows how the absence of perfect microeconomic conditions can nullify or even reverse the potential gains to producers from trade. Trade is the willing exchange of goods, services, or both Trade is also called Commerce. While Nicholls agrees that the win-win situation for all actors involved may be broadly correct in some markets, nevertheless, "within developing countries market conditions are not such that producers can unambiguously be declared to be better off through trade. Dr Alex Nicholls MBA is the first lecturer in social entrepreneurship appointed at the University of Oxford and was the first staff member of the Skoll Centre for Social "[27] The existence of these market failures lessens the capacity trade has to lift developing countries out of poverty. Market failure is a concept within economic theory wherein the allocation of goods and services by a Free market is not efficient. Poverty (also called penury) is deprivation of common necessities that determine the quality of life including food clothing shelter and safe Drinking water, and
Fair trade is seen as an attempt to address these purported market failures by providing producers a stable price for their crop, business support, access to premium Northern markets and better general trading conditions.
Fair trade advocates also often point out that unregulated competition in global commodity markets ever since the 1970s and 1980s has encouraged a price "race to the bottom". In Government regulation, a race to the bottom is a phenomenon that is said to occur when competition between nations or states (over Investment capital for example During the 1970-2000 period, prices for many of the main agricultural exports of developing countries, such as sugar, cotton, cocoa and coffee, fell by 30 to 60 percent. Sugar is a class of edible Crystalline substances mainly Sucrose, Lactose, and Fructose. Cotton is a soft staple Fibre that grows around the seeds of the cotton plant ( Gossypium sp Cocoa is the dried and fully fermented fatty seed of the cacao tree from which Chocolate is made CoFFEE is an Open source Software for computer supported collaborative learning (CSCL in a digital classroom [29] According to the European Commission, “the abandonment of international intervention policies at the end of the 1980s and the commodity market reforms of the 1990s in the developing countries left the commodity sectors, and in particular small producers, largely to themselves in their struggle with the demands of the markets”. The European Commission (formally the Commission of the European Communities) is the executive branch of the European Union. Economic interventionism, is a common term used to describe any activity beyond the basic regulation of fraud and enforcement of contracts undertaken by a government in an effort to affect Today, “producers… live an unpredictable existence because the prices for a wide range of commodities are very volatile and in addition follow a declining long-term trend”. [30] The total loss for developing countries due to falling commodity prices has been estimated by the Food and Agricultural Organisation (FAO) to total almost $250 billion during the 1980-2002 period. [18]
Millions of poor farmers are dependent on commodities and on the price they receive for their harvest. In Agriculture, the harvest is the process of Gathering mature crops from the fields Reaping is the cutting of Grain In about 50 developing countries, three or fewer primary commodity exports constitute the bulk of export revenue.
Many farmers, often without other means of subsistence, are obliged to produce more and more, no matter how low the prices are. Research has shown that those who suffer most from declines in commodity prices are the rural poor — i. e. the majority of people living in developing countries. Basic agriculture employs over 50% of the people in developing countries, and accounts for 33% of their GDP. Agriculture refers to the production of goods through the growing of plants and fungi and the raising of domesticated Animals The study of agriculture [31]
Fair trade supporters believe current market prices do not properly reflect the true costs associated with production; they believe only a well-managed stable minimum price system can cover environmental and social production costs. In Economics social cost is defined as the sum of private and external costs
Fair trade's increasing popularity has drawn criticism from both ends of the political spectrum. Fair trade 's increasing popularity has drawn criticism from both ends of the Political spectrum. A political spectrum (plural Spectra) is a way of modeling different political positions by placing them upon one or more geometric axes Some economists and think tanks see "fair trade" as a type of subsidy that impedes growth. A think tank (also called a policy institute) is an organization institute corporation or group that conducts Research and engages in advocacy in areas such In Economics, a subsidy (also known as a subvention is a form of financial assistance paid to a business or economic sector Segments of the left criticize fair trade for not adequately challenging the current trading system.
Criticism: Fair trade opponents such as the Adam Smith Institute claim that similar to other farm subsidies, fair trade attempts to set a price floor for a good that is in many cases above the market price and therefore encourages, as fair trade opponents claim, existing producers to produce more and new producers to enter the market, leading to excess supply. The Adam Smith Institute is a Think tank based in the United Kingdom, named after the father of modern Economics, Adam Smith. An agricultural subsidy is a governmental Subsidy paid to Farmers and Agribusinesses to supplement their income manage the supply of agricultural A price floor is a government- or group-imposed limit on how low a price can be charged for a product Market price is an economic concept with commonplace familiarity it is the price that a good or service is offered at or will fetch in the marketplace it is of interest mainly in the Produce is a generalized term for a group of Farm -produced goods generally limited to Fruits and Vegetables More specifically the term "produce" [32] Through the laws of supply and demand, excess supply can lead to lower prices in the non-Fair Trade market. Supply and demand is an Economic model describing effects on price and quantity in a Market. [33]
In 2003, Cato Institute's vice president for research Brink Lindsey referred to fair trade as a “well intentioned, interventionist scheme. The Cato Institute is a Libertarian Think tank headquartered in Washington D Brink Lindsey is the Cato Institute 's Vice president for research Economic interventionism, is a common term used to describe any activity beyond the basic regulation of fraud and enforcement of contracts undertaken by a government in an effort to affect . . doomed to end in failure. " Fair trade, according to Lindsey, is a misguided attempt to make up for market failures in which one flawed pricing structure is replaced with another. Market failure is a concept within economic theory wherein the allocation of goods and services by a Free market is not efficient. [34]Lindsey's comments echo the main criticisms of Fair Trade, claiming that it "leads fair trade producers to increase production. " While benefiting a number of Fair Trade producers over the short run, fair trade critics worry about the impact on long run development and economic growth. Economic theory suggests that when prices are low due to surplus production, adding a subsidy or otherwise artificially raising prices will only exacerbate the problem by encouraging more supply[35] and also encouraging workers into unproductive activities. [36]
Response: The Fairtrade Foundation counters the price distortion argument by claiming that fair trade does not ‘fix prices’. The Fairtrade Foundation is the British member of FLO International, which unites 23 Fairtrade producer and labelling initiatives across Europe "It rather has a minimum floor price that ensures farmers can meet the costs of sustainable production should market prices fall below this level. The minimum price is not a fixed price but the starting point for a market-based price negotiation. Many fair trade growers routinely earn more than this for the quality, type of coffee bean (or other product) or the particular origin they offer. The minimum price mechanism provides the most vulnerable people in the supply chain the security to meet their basic costs in time of crisis. Effectively, it provides a safety net should markets fall below a level considered necessary for farmers to earn back the costs of sustainable production". [37]
Moreoever, the fair trade minimum price only applies if the market price is lower than this. When market prices exceed the minimum price, traders must negotiate on the basis of market prices, not fair trade minimums. [38]
Several academics, including Hayes[39], Becchetti and Rosati[40], also identify two other counterarguments to this criticism.
And finally, beyond these elements, it is also important to also take into account all the other non-price related potential benefits of the fair trade value chain in terms of technical assistance, democratization of markets through increasing consumer power, crop diversification programs, etc. [40]
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