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Welcome to the presentation on World Fair TradeGroup members :Pankaj Kumar Mallick (mds-141503)Debabrata MAHALDER (mds-141533)Md. Khairul Islam Rony (mds-141544)MDS Khulna University Session :2014-15

"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, and securing the rights of marginalized producers and workers .

They 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."They can be recognized by the WFTO logo.2Introduction

3The first attempts to commercialize fair trade goods in Northern markets were initiated in the 1940s and 1950s by religious groups and various politically orientednon-governmental organizations(NGOs).Ten Thousand Villages, an NGO within theMennonite Central Committee(MCC) andSERRV Internationalwere the first, in 1946 and 1949 respectively, to develop fair trade supply chains in developing countries.The products, almost exclusively handicrafts ranging fromjutegoods tocross-stitchwork, were mostly sold in churches or fairs. The goods themselves had often no other function than to indicate that a donation had been made.

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: The slogan at the time, "Trade not Aid", gained international recognition in 1968 when it was adopted by theUnited Nations Conference on Trade and Development(UNCTAD) to put the emphasis on the establishment of fair trade relations with the developing world.


Fair tradeis developed byan informal association of four international fair trade networks: 1.Fairtrade Labelling Organization, 2.World Fair Trade Organizations (WFTO), 3.Network of European Worldshops and 4.European Fair Trade Association (EFTA)4Fair trade Formation

Fair Trade is more than just trading:It proves that greater justice in world trade is possible.It highlights the need for change in the rules and practice of conventional trade and shows how a successful business can also put people first.It is a tangible contribution to the fight against poverty, climate change and economic crisis.5Functions of Fair Trade

Fair tradeis asocial movementwhose stated goal is to help producers indeveloping countriesachieve better trading conditions and to promotesustainability. Members of the movement advocate the payment of higher prices to exporters, as well as higher social and environmental standards. The movement focuses in particular on commodities, or products which are typically exported from developing countries todeveloped countries, but also consumed in domestic markets. It promotes sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers in developing countries.6Functions of Fair Trade

7American Apparel, BeGood Clothing, Boll & Branch, Cherie Amie, FairTrade Australia, Fair Indigo, Good & Fair Clothing Co., HAE Now, Life Threads Clothing, Maggie's Organics, prAna, Ten Thousand, Villages, Y'abal HandicraftsFollowing are companies that use fair trade :Fair Trade

8Ayni Bolivia(Bolivia), Asha Handicrafts Association(India), Association for Craft Producers (ACP)(Nepal), Baladarshan(India), Barbosa Fair Trade(Netherlands), Bethlehem Fair Trade Artisans(BFTA) Palestine), CRC(India), Creative Handicrafts(India), CTM Agrofair Italy(Italy), CTM Altromercato(Italy), Dr. Bronner's Magic Soaps(USA), El Puente GmbH(Germany), EZA Fairer Handel(Austria), Fair Trade Company - People Tree Japan(Japan), FairMail(Netherlands), GEPA(Germany), Glenart Trading (Pty) Ltd.(South Africa), Holy Land Handicraft Cooperative Society(Palestine), Kiboko(Kenya), Kumbeshwar Technical School (KTS)(Nepal), Mifuko(Finland), People Tree UK( UK), Pushpanjali (PFT)(India), Sasha(India), SeeMe(Netherlands), Selyn Exporters Ltd.(Sri Lanka), SETU(India), Smolart Self-Help Group(Kenya), Tara Projects(India), Thanapara Swallows Development(Bangladesh), Trade Aid(New Zealand), Turqle Trading(South Africa), TWINE(Taiwan), Yunnan Danyun Fair Trade Development Co., Ltd.(China)Some countries where Fair Trade works:

910 Principles of Fair TradeCreating Opportunities for Economically Disadvantaged ProducersTransparency and AccountabilityFair Trading PracticesPayment of a Fair PriceEnsuring no Child Labor and Forced LaborCommitment to Non Discrimination, Gender Equity and Womens Economic Empowerment, and Freedom of AssociationEnsuring Good Working ConditionsProviding Capacity BuildingPromoting Fair TradeRespect for the Environment

There are several recognized Fairtrade certifiers, includingFairtrade International(formerly called FLO,Fairtrade Labelling Organizations International), IMO and Eco-Social. Additionally,Fair Trade USA, formerly a licensing agency for the Fairtrade International label, broke from the system and is implementing its own fair trade labelling scheme, which has resulted in controversy due to its inclusion of independent smallholders and estates for all crops. In 2008, Fairtrade International certified approximately (3.4B) of products TheWorld Trade Organizationpublishes annual figures on the world trade of goods and services.10Fair trade Movement

The movement is especially popular in the UK where there are 500 Fairtrade towns, 118 universities, over 6,000 churches, and over 4,000 UK schools registered in the Fairtrade Schools Scheme. In 2011, over 1.2 million farmers and workers in more than 60 countries participated in Fair Trade, and 65 million in Fairtrade premium was paid. According to Fairtrade International, nearly six out of ten consumers have seen the Fairtrade mark and almost nine in ten of them trust it.11Fair trade Movement

There are a large number of fair trade and ethical marketing organizations often employing different marketing strategies . Most Fair Trade products are sold by those Fair Trade organizations that believe it is necessary to market through supermarkets to get sufficient volume of trade to have any real impact on the developing world. The coffee has to come from a certified Fairtrade cooperative, and there is a minimum price when the world market is oversupplied. The cooperatives can, on average, sell only a third of their output as Fairtrade, because of lack of demand, and sell the rest at world prices. 12The Fair Trade strategy

The exporting cooperative can spend the money in several ways. Some go to meeting the costs of conformity and certification: as they have to meet Fairtrade standards on all their produce, they have to recover the costs from a small part of their turnover, sometimes as little as 8%,and may not make any profit. Some meet other costs. Some is spent on social projects such as building schools, clinics and baseball pitches. Sometimes there is money left over for the farmers. The cooperatives sometimes pay farmers a higher price than farmers do, sometimes less, but there is no evidence on which is more common.13The Fair Trade strategy

14The World Fair Trade Organization (WFTO) aims to improve the livelihoods of disadvantaged people in developing countries by linking and strengthening organisations that offer just alternatives to unfair trade structures and practices. WFTO members share the following practices:Commitment to Fair Trade : To trade with concern for the social, economic and environmental well-being of marginalised producers in developing countries. This means equitable commercial terms, fair wages and fair prices. Unfair trade structures, mechanisms, practices and attitudes will be identified and avoided.Transparency: To openly share financial information, management policies, business practices, product sources, production, marketing and development programme plans on a regular basis. This enables both members and the public to assess WFTOs, and each organisations social and financial effectiveness. This openness is tempered with respect to sensitive commercial or political information.WFTO CODE OF PRACTICE

153. Ethical Issues: To reflect in their structures a commitment to justice, fair employment, public accountability and progressive work practices. To seek the greatest possible efficiency at the lowest cost while involving workers in decision-making and management as appropriate to each organisation. To aim for adequate income for workers to meet their basic needs, including health care, education and the capacity to save.4. Working Conditions: To ensure a safe working environment that satisfied at a minimum all local statutory regulations. To provide the opportunity for all individuals to grow and reach their potential. To ensure that work is carried out under humane working conditions, using appropriate materials and technologies, while following good production and work practices.WFTO CODE OF PRACTICE

165. Equal Employment Opportunities: To oppose discrimination and ensure equality of employment opportunities for both men and women who suffer from the exploitation of their labour and the effects of poverty and racial, cultural or gender bias.6. Concern for People:To promote development which improves the quality of life and which is sustainable for and responsible to both people and the natural world. There will be no exploitation of child labour. Trading activities should not violate indigenous peoples claims on land or any resources of vital importance to their way of life.7. Concern for the Environment:To encourage the trading of goods which are environmentally friendly. To manage resources sustainably and to pro

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