A FAIR TRADE MARK FOR PRODUCTS OF FAIR TRADE ORGANIZATIONS

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Fair Trade Standards, Monitoring and
Certification System IFAT  
LUCAS CALDEIRA
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Fair Trade Standards, Monitoring Certification
System IFAT
IFAT

• AFRICA 61 20
• ASIA 91 31
• LATIN AMERICA 42 14
• EUROPE 80 27
• N.AMERICA/PACIFIC RIM 25 8

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Fair Trade Standards, Monitoring Certification
System IFAT
IFAT is active in
1.Promoting market opportun.
2.Building trust in Fair Trade
3.Speaking out for Fair Trade
4.Empowering the regions
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Fair Trade Standards, Monitoring Certification
System IFAT
1.Promoting Market opportunities
A platform for (lateral) cooperation

• Market opportunities in e-Updates

• Workshops on market development at international
  and regional meetings
• Catgen

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Fair Trade Standards, Monitoring Certification
System IFAT
2.Building trust in Fair Trade

• Standards for FTOs
• Indicators, compliance criteria
• 3 Tier monitoring process
• self assessment
• peer review (mutual review)
• external verification

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Fair Trade standards
Fair Trade Standards, Monitoring Certification
System IFAT
A fair price

• For products where FLO has product standards FLO
  system (food)
• For handicrafts price agreed in open and
  transparent proces
• Fair Trade wage guidewww.fairtradecalculator.org
  www.worldofgood.org

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Phase 1 Starting point for the development of
Generic FT Quality System
Fair Trade Standards, Monitoring Certification
System IFAT
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Starting Point
Fair Trade Standards, Monitoring Certification
System IFAT
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Elements of Generic FT Quality System
Fair Trade Standards, Monitoring Certification
System IFAT
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IFAT registration process
Fair Trade Standards, Monitoring Certification
System IFAT
2.Building trust in Fair Trade
Fair Trade organisation (IFAT member)
External Verification
Self-assessment report
Registration Sub-committee
Inspection report
Peer review report
Publication into register of Fair Trade Org.
Request for additional information
Improvement actions
IFAT Executive Committee
Recommendation for registration
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Some key issues
MARKET DEVELOPMENT, POTENTIALS OPPORTUNITIES

• Hazardous substances
• Protection against infestation, moisture and
  mould
• Seasoning and drying of wood products
• Finish on products (e.g. no sharp edges)
• Chemical content (of products in contact with
  skin)
• Protective/ recyclable packaging
• Labelling safety requirements
• Environmental issues generally

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Fair Trade standards
Fair Trade Standards, Monitoring Certification
System IFAT
Fair Trade Organizations

• Create opportunities for economically
  disadvantaged producers
• Are transparent and accountable
• Build the skills and capacity of producers
• Promote Fair Trade and greater justice in world
  trade
• Pay a fair price
• Provide opportunities for women and men
• Promote a safe and healthy working environment
• Respect the UN Convention on the Rights of the
  Child
• Minimise their impact on the natural environment
• Trade with concern (relations long term,
  solidarity)

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Fair Trade Standards, Monitoring Certification
System IFAT
2.Building trust in Fair Trade

• All members participate
• Participatory/democratic
• Cost efficient/affordable
• Accessible to everybody
• Transparent
• FTO Mark as USP

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Fair Trade Standards, Monitoring Certification
System IFAT
Recent developments

• Streamlining membership and monitoring
• Members and provisional members
• Entry audit for membership
• Improve stakeholder feedback
• Improved indicators
• Fair wage guide
• Scoring system
• Improve complaints procedure
• Decentralize monitoring and membership

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Fair Trade Standards, Monitoring Certification
System IFAT
Profiling Fair Trade Organizations

• organisation label

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We travelled by camel
Fair Trade Standards, Monitoring Certification
System IFAT
Mali
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Fair Trade Standards, Monitoring Certification
System IFAT
Fair Trade Organization Mark
Functions (1)

• Identifies Fair Trade Organizations
• (identifies mission driven Fair Trade
  Organizations who have the concept of Fair Trade
  at the heart of their mission and at the core of
  what they do)

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Fair Trade Standards, Monitoring Certification
System IFAT
Fair Trade Organization Mark
Functions (2)

• Assurance to consumers
• (commitment of the trading activity to continual
  improvement in areas of artisans working
  conditions, wages, child labor and the
  environment)

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Fair Trade Standards, Monitoring Certification
System IFAT
Fair Trade Organization Mark
Functions (3)

• Shows involvement in thé global network of Fair
  Trade Organizations
• a network that gives trading partners -
  artisans, wholesalers and retailers - an equal
  voice and vote

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Fair Trade Standards, Monitoring Certification
System IFAT
India
We danced
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Fair Trade Standards, Monitoring Certification
System IFAT

• March 2007 IFAT EC agreed to propose to the AGM
  the following resolution
• By the end of 2008, IFAT will introduce a Fair
  Trade Organisation Label used on food and
  handicraft products of registered members.
• EC also approved that AFTF would be the project
  manager for the initial phase.

LABELLING INITIATIVES
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Fair Trade Standards, Monitoring Certification
System IFAT
LABELLING INITIATIVES

• The labels requirements are designed to
  strengthen our organizations.
• Will help us improve our systems and processes
• The label is a means, not an end

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Fair Trade Standards, Monitoring Certification
System IFAT
LABELLING INITIATIVES
WHAT IS THE PROPOSAL ABOUT?

• Three sets of criteria (Fair, Good Business and
  Environmental).
• Once certified, the organisation can put a
  Consumer label on its products.
• The certification and registration process
  undertaken by an independent organisation
  (Craft-Cert) open to qualifying outsiders

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Fair Trade Standards, Monitoring Certification
System IFAT
LABELLING INITIATIVES
HOW DO WE PROCEED? MAJOR ACTIVITIES ENVISAGED

• Develop World-Wide steering Committee Budgets,
  funding, overall management.
• Nominate a Criteria Committee to develop criteria
  and standards.
• Test-run beta-version on members

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Fair Trade Standards, Monitoring Certification
System IFAT

• Multi-stakeholder consultation on criteria and
  process according to ISEAL standards.
  
  (International
  Social and Environmental Accreditation and
  Labeling Compliance)

LABELLING INITIATIVES
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Fair Trade Standards, Monitoring Certification
System IFAT
LABELLING INITIATIVES

• Test and validate the certification system
  globally
• Application of the process in all regions using
  volunteer FTOs
• Fine-tune local auditing criteria
• Develop structures that need to be set up

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Fair Trade Standards, Monitoring Certification
System IFAT
LABELLING INITIATIVES

• Establish CRAFT CERT - an independent
  certification agency using southern-based
  accredited auditors.
• Obtain third party accreditation of CRAFT CERT.
• Develop Capacity-Building structures
• Develop a marketing and communication strategy to
  tell consumers about the label

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IFAT
A G M
Member
Member
Member
Member
Country
Country
Region
Region
Region
Region
Region
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3 chair
GENERAL BOARD
Election
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Joining IFAT?

• Part of global network of Fair Trade
  Organizations
• Trusted monitoring system
• Access to FTO Mark
• Learning and information exchange
• Fortnightly e-mail Update
• Members Only website
• Conferences
• Advocacy voice
• Access credit --- Shared Interest Clearing House
• Catgen --- increased visibility
• Market opportunities

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Activities of Asia Fair Trade Forum Center of
Learning

• Business Scans

• Product Development and Design
• Training/ Trade Fairs

• Market Planning
• E-Commerce and Catgen

• Financial Planning/ Analysis

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IFAT
... a truly global network
Over 300 members in 70 countries South and North
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Thank you