FAIR TRADE Presentation

1
FAIR TRADE Presentation

•  Trade no aid 

2
Fair trade A solution to overcome the lacks of
Globalization

• Mechanism of market protection
• Subsidies for agricultural production
• Overpower in decision making process

3
Fair trade A new way of understanding
development

• The crisis of technical assistance
• The disturbing mechanisms of grants and donations
• The principles of sustainable development

4
Fair trade A new way of making business

• Integrate the notion of sustainable development
  in international trade
• Fair price not best price - a new approach of
  consumption
• Trust, not lust - a new approach of cooperation

5
The origins of Fair trade

• 1986 creation of the label Max Havelaar, after a
  book written by
• Frans van der Hoff, a Dutch priest working as a
  missionary in Mexico. He will encourage small
  coffee producer to engage in fair trade
• Nicop Roozen, economist that has worked has an
  international consultant. He will convince
  European distribution groups and public opinion
  to give a chance to fair trade

6
The principles of Fair TradeFair prices

• People should be put before profit
• That price should cover a reasonable income, the
  cost of environmental protection and economic
  security
• Early payment the risk is taken over by the
  distributor not the producer
• Consumer agree to pay a fair price taking into
  consideration fair trade criteria

7
The principles of Fair TradeCooperation for
development

• Constant co-operation between the producer and
  the distributor builds a relationship not only
  based on profit but on mutual understanding
• Mutual feedback among partners in the fair trade
  chain, on their products and marketing methods
• Support in community development through long
  term involvement
• Re-investment for sustainable development

8
The principles of Fair TradeGood working
conditions

• Democracy in the decision making process
  everybody should be involved in the decision
  making process when it affects the production
• Social equity and good working conditions should
  be ensured
• Openness and transparency about the structure and
  all aspects of the activity

9
The principles of Fair TradePromotion of Human
rights

• Respect and promotion of human rights under
  international conventions for the protection of
  Human rights and Labour standards
• Especially those of women, children and disabled
  people
• For international consumers, it can be seen as an
  added-value, justifying higher prices

10
The principles of Fair TradeEnvironment
production

• Promote environmental friendly production even
  when it generates higher prices for products
• Develop sustainable tourism based on ecological
  and community respect
• Promote activities for public awareness on
  ecological issues

11
Marketing of Fair trade

• In Europe, public awareness is ever growing,
  thanks to public campaigns and good marketing
• Many important general stores are proposing, or
  even directly developing, a fair trade department
• Marketing focuses on the production process, on
  the producer and its living conditions
• New concept of the responsabilisation of the
  final consumer

12
Marketing of Fair trade

• Fair trade is generally promoted by two groups
• Christians (mainly Protestants) that have adapted
  their missions to the needs of international
  markets. Ethic trade is indeed a founding
  principle of the Protestant ideology
• Social movements promoting a new form of
  globalisation not only based on pure capitalism
  but on fair criteria allowing the development of
  the poorest countries and people and fighting for
  the protection of the ecology

13
Fair Trade international networkThe FINE network
(1996)

• FLO - Fair Trade Labelling Organisation
• IFAT - International Federation for Alternative
  Trade
• NEWS - Network of European World Shops
• EFTA - European Fair Trade Association

14
FLO - Fair Trade Labelling Organisation

• In 1997, 17 national labelling organisations
  (Germany, Austria, Belgium, Canada, Denmark,
  United-States, Finland, France, Great-Britain,
  Luxembourg, Ireland, Italy, Japan, Norway, The
  Netherlands, Sweden and Switzerland) gathered to
  establish an international certificate for Fair
  Trade.
• Harmonisation of Fair Trade standards and control
  procedures
• 800 000 producers in 45 countries
• http//www.fairtrade.net/

15
IFAT - International Federation for Alternative
Trade

• Created in 1989 to gather different organism such
  as the Association of African, Asian and Latin
  American producers,Import groups, and Fair trade
  institutes in Europe, Japan and USA
• Its goal is to improve the living conditions of
  Southern producers and change the the ideology of
  international trade
• IFAT works as a network among 148 members in 45
  countries
• http//www.ifat.org/

16
NEWS - Network of European World Shops

• The Network consists of 15 national World Shop
  associations in 13 different countries all
  together representing about 2,500 World Shops in
  Europe.
• The aim of NEWS is to support the development of
  world shops in Europe and through world shops,
  fair trade in general
• Organisation and coordination of Fair Trade
  Global Summits
• http//www.worldshops.org/

17
EFTA-European Fair Trade Association

• Created in 1990 as a European network for 11
  buying and distribution centres in 9 countries
  working with more than 400 producers
• EFTA members generated a combined turnover of 150
  millions Euros in 2001. Handicrafts 25,4. Food
  69,4. The remaining 5.2 is made up of
  literature and different products
• The association aims at sharing information
  between the members and improving cooperation
  among them (organisation of various conferences)
• Works as a lobbying and advocacy group
• http//www.eftafairtrade.org/

18
Max Havelaar

• Max Havelaar is the first and most famous fair
  trade label.
• Max Havelaar certifies food products coffee,
  tea, chocolate, honey, sugar, bananas, rice and
  fuit juices
• In 2003 Max Havelaar claims an increase in the
  coffee sales of 19 and of 52 for bananas.

19
How to get the certification?

• FLO ensures the certification of Fair trade
  producers
• Òne must fulfil the requirements imposed by the
  international fair trade standards
• Get in contact with FLO and fill in a detailed
  questionnaire, if FLO considers there is a
  potential fair trade market for the proposed
  product
• First inspection visit - decision from a
  Certification committee

20
The limits of fair trade

• How to make ethic trade and not ethnic trade?
• Focus on international markets and not
  necessarily on internal market
• Fair trade can be a fashion. Until it is
  effectively recognized and implemented by organs
  such as the World Trade Organisation, fair trade
  relies on a few number of association or
  companies whose financial liability is not always
  guaranteed

21
How to make fair trade in Uzbekistan?

• Through individual initiatives
• The constitution of a fair trade organisation
  that would identify potential producer and
  establish the contacts with international
  partners
• Potential sources of funding international
  networks and International funding institutions
  (such as the European Union)