overview of fair trade in n america v11!10!11
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All Rights Reserved.updated October 2011
Overview ofOverview of
Fair Trade inFair Trade inN. AmericaN. America
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Brought to you byBrought to you by
Companions to this presentation available atFTRN.org:
editable Power Point file
34-page booklet PDF file of booklet
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OutlineOutline
1. Why change traditional trade?
2. What is Fair Trade?
1. Fair Trade in action
2. Brief history of Fair Trade
1. Challenges facing Fair Trade
2. How to get involved!
William Gabriel, Windward
Islands.Photo credit: Simon Rawles
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Why Change Traditional Trade?
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Problems with traditional tradeProblems with traditional trade
1. Gives too much power to multinationalcorporations and rich countries
2. Minimizes opportunities for vulnerableproducers and sometimes degrades theenvironment
3. Focuses on short-term profits, evades thefull costs of commerce, and overlooks theplight of marginalized people.
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Goals of Fair TradeGoals of Fair Trade
Empowered communities
Market access
Increased independence
Community development
Kids use water pump provided
by Fair Trade, Ghana.
Photo credit: J. DeCarlo
Weavers gain healthy and safe workshop
conditions through Fair Trade in
Cambodia.
Photo credit: Jeff Goldman
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What is Fair Trade?What is Fair Trade?
Women artisans,
Rwanda.
Photo credit: SERRV
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A Social Justice Movement
An Alternative Business Model
A System of Global Commerce
A Tool for International Development
A Faith-Based Activity
Farmer and consumer pick coffee, Nicaragua.
Photo credit: Global Exchange
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A useful definition of Fair Trade
a trading partnership, based on dialogue, transparencyand respect, that seeks greater equity in internationaltrade. It contributes to sustainable development by
offering better trading conditions to, and securing therights of, marginalized producers and workers
especially in the South. Fair Trade organizations, backedby consumers, are engaged actively in supporting
producers, awareness raising and in campaigning forchanges in the rules and practice of conventional
international trade.-FINE (1998)
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How does Fair Trade Differ from Free Trade?
Free Trade Fair Trade
Main goal: To increase nations economic growth To empower marginalized people and
improve the quality of their lives
Focuses on: Trade policies between countries Commerce among individuals andbusinesses
Primarily benefits: Multinational corporations, powerfulbusiness interests
Vulnerable farmers, artisans and workers in
less industrialized countries
Critics say: Punishing to marginalized people &
the environment, sacrifices long-term
Interferes with free market, inefficient, too
small scale for impact
Major actions: Countries lower tariffs, quotas, laborand environmental standards
Businesses offer producers favorable
financing, long-term relationships, minimum
prices and higher labor and environmental
standards
Producer compensation
determined by:
Market and government policies Living wage and community improvement
costs
Supply chain: Includes many parties betweenproducer and consumer
Includes fewer parties, more direct trade
Key advocate
organizations:
World Trade Organization, World
Bank, International Monetary Fund
Fairtrade Labeling Organization, World Fair
Trade Organization
Free Trade
Fair TradeMain goal:
To increase nations economic growthTo empower marginalized people and improve the quality of their lives
Focuses on:Trade policies between countries
Commerce among individuals and businessesPrimarily benefits:
Multinational corporations, powerful business interestsVulnerable farmers, artisans and workers in less industrialized countries
Critics say:Punishing to marginalized people & the environment, sacrifices long-term
Interferes with free market, inefficient, too small scale for impactMajor actions:
Countries lower tariffs, quotas, labor and environmental standardsBusinesses offer producers favorable f inancing, long-term relationships,
minimum prices and higher labor and environmental standardsProducer compensation determined by:
Market and government policiesLiving wage and community improvement costs
Supply chain:Includes many parties between producer and consumer
Includes fewer arties more direct trade
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Identifying Fair Trade
Organization recognition
Product
certification
There are also a few other organizations
recognizing a small number of FTOs, or certifying asmall amount of Fair Trade products.
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Principles forRecognizing Fair
Trade Organizations(FTOs)
Catarina and Mercedes produce
crafts in Guatemala for
MayaWorks. Photographer
Naomi Czerwinskyj.
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Principlesfor FTOs
Girl from a Nicaraguan Coffee
Coop.
Photo credit: Global Exchange
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Criteria for Product Certification
Farmers & Workers benefit from:
Fair Prices
Healthy & Safe Labor Conditions
Direct Trade Democratic & Transparent
Organizations
Community Development
Environmental Sustainability
Sugar cane farmer cuts
sample to taste.
Photo credit: Fair Trade
USA
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Marie Malan, vineyard farm
manager.
Photo credit: Fair TradeUSA
FAIR TRADE IN ACTION!
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Sahaj Womens Cooperative
Sharda Ben Kochra,
India.
Photo credit:
Handmade Expressions
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Kuapa Kokoo Farmers Union
Girls now don't have to stay home to work.Photo credit: Phil Grout
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Fair Trade by Some Numbers:
Elvia Almachi works with
Fair Trade flowers at
Agrogana Farm, Ecuador.
Photo credit: Fair Trade
USA
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Advocates visit
cacao farmer,
Nagua, Dominican
Republic.
Photo credit:
Stephanie Sheerin
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878 Producer Organizations Operate inOver 70Countries the Top 20
Number of FLO Certified Producer Organizations by Country - 2010
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FTC Coffee Imported to the U.S. from total of around 110million pounds in 2010
Another look at where producers are
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Fair Trade Sales 2009 (in millions of dollars):
Consumers Buy Fair Trade Products in Over20Countries a sample of where
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SURE artisan,
India.
Photo credit:
HandmadeExpressions
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Woman picking tea leaves.
Photo credit: Fair Trade
USA
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Fair Trade Certified Products, with PremiumPayments to Producers in 2010 ($ millions)
Source: FTUSA
Coffee 10.9Bananas 1.3
Sugar 0.64
Tea 0.63Flowers 0.31
Cocoa 0.30Vanilla/Spices 0.13
Wine 0.07Honey 0.06
Rice & Quinoa 0.05
Olive oil, Olives, BrazilNuts,and Shea Butter0.01
Total 14.4
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9500 FTC Products Are Sold At 60,000
Retail Locations in US - MajorBrands:Coffee Shops:
Caribou Coffee, Dunkin' Donuts, Peet's Coffee and Tea,
Seattle's Best Coffee, Starbucks Coffee
Grocery Stores:Costco, Giant, Kroger, Safeway, Sam's Club, Target, Trader
Joe's, Wal-Mart, Wegmans, Whole Foods Market
Other Shops:
Ben & Jerry's Scoop Shops, Bruegger's, Einstein Bagels
Green Mountain Coffee Roasters passed Starbucks in 2010
as the largest purchaser of Fair Trade products in the world,
with around $75 million paid to producers.
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Master trainer, Pakistan.
Photo credit: Mike DuBose,
UMNS & Global Goods
Partners
Body Care
Cards / Stationary
Clothing
Decorative ArtHandbags and Totes
Home Textiles
Furniture
Jewelry
Musical InstrumentsReligious Items
Sports Equipment
Toys
Fair Trade products
available through FTOs:
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Dr. Bronners Magic Soaps
Equal Exchange
SERRV
Ten Thousand Villages
The Four BiggestFTOs by Sales
Farmer carries bag of mint, Sri Lanka.
Photo credit: Dr. Bronners Magic Soaps
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History of Fair Trade:How Did Fair Trade Begin?
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1940s
1960s 1970s 1980s 1990s 2000s
1946: Edna Ruth Byler1946: Edna Ruth Bylerimports needlecraftsimports needlecraftsfrom displaced infrom displaced in
EuropeEurope
1949: Church of the1949: Church of theBrethren establishBrethren establishSERRV InternationalSERRV International
1968: UNCTAD1968: UNCTADembraces Tradeembraces Tradenot Aid conceptnot Aid concept
1972: First Ten1972: First TenThousand VillagesThousand Villagesstore opensstore opens
1986: Equal1986: EqualExchange establishedExchange establishedas cooperative, 100%as cooperative, 100%Fair Trade businessFair Trade business
1989: IFAT1989: IFATestablished by Fairestablished by FairTrade pioneersTrade pioneers
1994: Fair Trade1994: Fair TradeFederation formedFederation formed
1997: Fair Trade1997: Fair TradeLabelingLabelingOrganizationsOrganizations
formedformed
2004: Producers form2004: Producers formnational and regional Fairnational and regional FairTrade associations acrossTrade associations acrossAsia, Latin America andAsia, Latin America and
AfricaAfrica
2005: 750 Fair Traders2005: 750 Fair Tradersparticipate in Fair Tradeparticipate in Fair TradeFutures ConferenceFutures Conference
2011 Fair Trade USA2011 Fair Trade USAleaves Fairtradeleaves Fairtrade
International systemInternational system
Fair Trade Timeline:
1969: Oxfam and1969: Oxfam andother Europeanother Europeanhumanitarianhumanitarianorganizations openorganizations openthe first Worldthe first WorldShopShop
1988 Farmers and1988 Farmers andactivists launch theactivists launch the
first Fair Tradefirst Fair Tradecertification system,certification system,Max HavelaarMax Havelaar
2009: 65,000 people, at2009: 65,000 people, atover 450 events around N.over 450 events around N.America, participate inAmerica, participate inWorld Fair Trade Day, theWorld Fair Trade Day, thelargest event in N.largest event in N.American Fair TradeAmerican Fair Trade
historyhistory
2010: A second product2010: A second productcertification becomescertification becomeswidely recognized , IMOswidely recognized , IMOsFair for Life Social &Fair for Life Social &Fairtrade Certified.Fairtrade Certified.
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Major Nonprofits inMajor Nonprofits in
Fair Trade:Fair Trade:
There are scores of other nonprofit players in the Fair Trade movement, including other faith-
based organizations, student groups, international development organizations, trade policy
outfits, and labor rights groups.
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Challenges Facing Fair Trade:
1. Reform or replace traditional trade?
2. How should fair prices and standards be
determined?3. How to deal with competing labels and
ensure credibility?
4. Should hired labor plantations and richcountry producers also benefit from Fair
Trade?
5. Others
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Shop FairTrade 1. www.FTRN.org for up-to-date
Where to Buy
2. Hundreds of members of
www.FairTradeFederation.org
3. Hundreds of members of the World
Fair Trade Organization at
www.WFTOMarket.com
4. Major retail outlets of Fair Trade
Certified products at
www.transfairusa.org
5. Brands certified as Fair for Life at
www.fairforlife.net
6. Ask you local stores to carry Fair
Trade goods
Tasting Fair Trade wine.
Photo credit: Amherst
Fair Trade Town
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Learn More
1. www.FTRN.org for up-to-date Learn Upresources
2. FTRNs free, monthly e-newsletter
3. www.FairTradeFederation.orgabout fully
committed Fair Trade Organizations
4. Fair Trade Organizations who are members
of FTF or WFTO
5. www.fairtradeusa.org about Fair Trade
Certified
6. www.fairforlife.net about Fair for Life
7. Ask local stores for information
8. Fair Trade producer trip
Newcomers and advocates
participate in a Fair Trade
Federation seminar.Photo credit: Fair Trade
Federation
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Spread the Word!
1. Refer people to Fair Traderesources
2. Organize an event
3. Introduce your friends to key
players in Fair Trade4. Ask local stores to carry Fair
Trade items
5. As your workplace, school or
faith community to use FairTrade items
6. Give Fair Trade gifts
7. Take a friend shopping
8. See www.FTRN.org for curricula.
Montclair, NJ, Fair Trade Club spreading
Fair Trade at expo.
Photo credit: Montclair Fair Trade Town
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Work or Volunteer
1. Job listings atwww.FTRN.org
1. Job listings atwww.FairTradeFederation.org
1. Volunteer with faith-basedgroups
1. Contact business in FairTrade
Fair Trade coffee server,Wisconsin.
Photo credit: WFTD Sinisawa, WI.
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Join an Action Campaign1. Host an event for World Fair Trade Day
(FTRN.org)
1. Do reverse trick-or-treating(globalexchange.com)
1. Join the Valentines Day of Action(globalexchange.com)
1. Organize a Fair Trade Town
(www.fairtradetownsusa.org)
1. Advocate for policy reform
1. Support nonprofit organizations, such asFTRN
Reverse Trick or Treating
Materials.
Photo credit: Global Exchange
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Fair Trade means that Haitians and others around the world can
have a better life, have a better vision of themselves, can stand on
their own two feet.
- Gisele Fleurant, Director, Committee for Haitian Artisans
Access this presentation and
more educational resources
at FTRN.org
Beads to Bricks at BeadsForLife.
Photo credit: Photo thanks to
www.charlessteinbergphotography.com