60 Years of theFair Trade Movement

Cambridge May 22, 2009

Stefan Durwael

• Stefan Durwael

• History of 60 Year Fair Trade movement

• Fair Trade Anno 2009

• Achievements

• Challenges

Overview

Stefan Durwael

stefan@fairehandel.nl

Skype: sdurwael

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History of Fair Trade

1. The roots: charity (roughly 1946-1970)

2. Political period: ‘Believe in the revolution’ (roughly 1964-1985)

3. From niche to mainstream (roughly 1986-2000)

4. Mainstreaming and profiling the USP of Fair Trade

(roughly 2000- …)

1. The roots: charity (roughly 1946-1970)

• Edna Ruth Byler 1946 - Puerto Rico M.C.C. Self Help Crafts now Ten Thousand Villages

• SERVV, end 40ties

• Oxfam UK, Hong Kong,

end 50ties

• SOS NL, 1959

• Based on (Christian) charity and solidarity

• No big words: helping through trade

•‘No aid but trade’ - Unctad ’68 New Delhi

1966

2. Political period: ‘Believe in the revolution’ (roughly 1964-1985)

• Cane sugar campaign (64)

• Boycot Outspan campaign (70)

• Boycot Angola coffee (72)

• May ‘68 demonstrations in Paris

• Solidarity with Martin Luther King, Allende (Chili), Nyerere (Tanzania)

• ‘Centre - periphery model’ work of Dependencia School Lat.Am. • Paulo Freire ‘Pedagogy of the Oppressed’ (’68)

Context

Breukelen (NL) 1969

• Big discussions about how to change the world

• In order to allow the poorest groups in the 3rd

World to determine their future, huge changes in our own society and mentality are needed • Information and campaigning for structural changes in society, in the First World

• A product is a tool, a symbol to tell the political message

• Trade as a way to support producers is less important

1973

Preference for working with progressive countries that want to function independently fromthe Western capitalistic system

• coffee and tea from Tanzania• wine and orange juice from Algeria• cashew nuts from Mozambique• rum from Cuba• coffee from Nicaragua

Leuven (B) 1980

1985

• FTO’s biennual meeting since Noordwijkerhout ’76

• EFTA (Berlin Spandau, 1987)

• IFAT – WFTO (Noordwijk, 1989)

• NEWS (1994)

• Fair Trade Labelling Organizations Intern. (1997)

• Regional and national networks in South and North

Organizing Fair Trade Movement

F

I

N

E

1998

3. From niche to mainstream (roughly 1986-2000)

• The revolution won’t come tomorrow and the 3rd World can’t wait..• We have to use the opportunities in the market • We should use commercial techniques • Critical consumption

1988

1860

4. Mainstreaming and profiling the USP of Fair Trade (roughly 2000 -…)

• Growth of CSR

• Political recognition of Fair Trade in Europe http://www.fairtrade-advocacy.org/images/communfairtrade.pdf 5 May ‘09

• Fair Trade and ‘Fair Trade light’

• Food increases, handicrafts tend to stagnate

FLO International - products

• AUSTRALIA: Fairtrade Labelling Australia and New Zealand• AUSTRIA: Fairtrade Austria • BELGIUM: Max Havelaar Belgium• CANADA: TransFair Canada• DENMARK: Max Havelaar Denmark • ESTONIA: Fairtrade Estonia (via Finland)• FINLAND: Reilun kaupan edistämisyhdistys ry.• FRANCE: Max Havelaar France• GERMANY: TransFair Germany • IRELAND: Fairtrade Mark Ireland • ITALY: Fairtrade TransFair Italy • JAPAN: Fairtrade Label Japan • LATVIA: Fairtrade Latvia (via Finland)• LITHUANIA: Fairtrade Lithuania (via Finland)• LUXEMBOURG: TransFair Minka Luxembourg• THE NETHERLANDS: Stichting Max Havelaar Netherlands• NEW ZEALAND: Fairtrade Labelling Australia and New Zealand• NORWAY: Fairtrade Max Havelaar Norway• SPAIN: Asociación del Sello de Comercio Justo• SWEDEN: Rättvisemärkt• SWITZERLAND: Max Havelaar Stiftung• UK: The Fairtrade Foundation• USA: TransFair USA 23 countries

FLO International - members

Fairtrade Marketing Organisations

• SOUTH AFRICA: Fairtrade Label South Africa

Producer Networks

• African Fairtrade Network (AFN)

• Coordinadora Latinoamericana y del Caribe de Comercio Justo (CLAC)

• Network of Asian Producers (NAP)

FLO International - members (2)

• 350+ members in 70 countries• 2/3 in the South• 4 regional networks• Many country networks

FAIR TRADE definition• Fair Trade is a trading partnership based

on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers - especially in countries of 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.

FINE December 2001

CHARTER of Fair Trade Principles www. http://www.fairtrade-advocacy.org)Two distinct but complementary channels:

• The integrated supply chain routeproducts are imported and/or distributed by organisations who have Fair Trade at the core of their mission and activities, using it as a development tool to support disadvantaged producers and to reduce poverty, and combine their marketing with awareness-raising and campaigning.

• The product certification routeproducts complying with international standards are certified indicating that they have been produced, traded, processed and packaged in accordance with the specific requirements of the international standards.

January 2009

http://www.fairtrade-advocacy.org/documents/FairTrade2007_newfactsandfigures.pdf

Sales Fair Trade products‘North’ in 2007

Sales Fair Trade productsEurope 2001 - 2007

Retail value Fair Trade certified productsEurope 2007 (x 1.000 Euro)

Consumption Fair Trade certified productsEurope 2007 in Euros per capita

Market share certified coffee and bananasEurope 2000-2007

Achievements• Increased trade volume, work and income • Empowerment of producers• (Indirect) Benefits to all producers in the area • Making the producer visible • Awareness, mainly in the North• From niche to mainstream• Growth of CSR (Fair Trade = CSR ‘avant la lettre’) • Political recognition (EP)• Fair Trade Towns (+500 in 15 countries)• World Fair Trade Day

• CSR cooperation ∆ differentiation

• Label ∆ brand

• Impact: Sales volume ∆ most disadvantaged

• Credible system ∆ expensive certification

• Political message ∆ marketing story

• Professionalism ∆ volunteers (campaigning)

Challenges: the right balance…

• The present economic model is not sustainable

• The ‘Culture of more, more, more’ and the

‘Race to the bottom’ has to and will stop

• Not the market should be leading, but mankind,

our community, our planet, our future

• Social and environmental costs will have to be

internalised in the market (in the cost price)

• Fair Trade and CSR are part of the solution

and will continue to grow

To conclude…

Thank you

Trade can be an efficient toolfor sustainable development and poverty alleviationif carried out in a fair and responsible manner