The same year, the European Commission published a survey on "Attitudes of EU consumers to Fair Trade bananas", concluding that Fair Trade bananas would be commercially viable in several EU Member States.[144]. Tucson: University of Arizona, 2000. In four cases it has been possible to find out. Ten Thousand Villages, an NGO within the Mennonite Central Committee (MCC), and SERRV International were the first, in 1946 and 1949, respectively, to develop fair trade supply chains in developing countries. In January 2004, Fairtrade Labelling Organizations International was divided into two independent organizations: Fairtrade International (FLO), which sets Fairtrade Standards and provides producer business support, and FLO-CERT, which inspects and certifies producer organizations. In the United States, there is more of a stigma against child labor than forced labor in general. In 2005, the company promised to purchase ten million pounds of fair trade coffee over the next 18 months. FLO is an umbrella organization whose mission is to set the Fairtrade Standards, support, inspect and certify disadvantaged producers and harmonize the Fairtrade message across the movement. Nestlé, the world's biggest coffee trader, began selling a blend of fair trade coffee in 2005. [8] FLO also has branches and field workers in Africa, Central and South America and China. Other concerns in the diamond industry include working conditions in diamond cutting centers as well as the use of child labor. Fairtrade standards are set by FLO in accordance to the requirements of the ISEAL Code of Good Practice in standard setting and are in addition the result of a consultation process, involving a variety of stakeholders: producers, traders, external experts, inspectors, and certification staff.[15]. The goals of the launch were to improve the visibility of the Mark on supermarket shelves, facilitate cross border trade, and simplify procedures for both producers and importers. Building toward credible standards—By 1 July 2005, the industry will develop and implement industry-wide standards of public certification that cocoa has been grown without any of the worst forms of child labor. The Max Havelaar seal, which was based on a fictional character, was established "to license existing roasters and retailers who complied with its fair trade criteria". These farms have little market access and thus rely on middlemen to bring their products to market. Berkeley: University of California, 2007, Willer, Helga; Yussefi-Menzler, Minou und Sorensen, Neil, (Hrsg.) [146] A common definition of fair trade was most notably developed. ASrticles relating to fair trade, an institutional arrangement designed to help producers in developing countries achieve better trading conditions. Artisans and Cooperatives: Developing Alternative Trade for the Global Economy. It is useful to include of measure of moral norms to improve the predictive power of intentions to buy fair trade over the basic predictors, like attitude and perceived behavioral control. [83] In 2002, 16,000 tons of Fairtrade coffee was purchased by consumers in 17 countries. Today, all but one labeling initiative have fully adopted the new mark. Jaffee, Daniel: "Weak Coffee: Certification and Co-Optation in the Fair Trade Movement." Cooperatives typically average prices over the year, so they pay less than traders at some times, more at others. [91] Sixty percent of the fair trade market revolves around food products such as coffee, tea, cocoa, honey, and bananas. [40], Producers and producer-groups spend this social premium to support socioeconomic development in a variety of ways. FLO-CERT, the for-profit side, handles producer certification, inspecting and certifying producer organizations in more than 50 countries in Africa, Asia, and Latin America. Companies offering products that meet the Fairtrade standards may apply for licences to use one of the Fairtrade Certification Marks for those products. Activism and ethical consumption not only promote fair trade but also act against powerful corporations such as Mars, Incorporated that refuse to acknowledge the use of forced child labor in the harvesting of their cocoa.[100]. Positive and normative analysis from a value chain perspective', Journal of Business Ethics, 86, 3–26. For a product to carry either the International Fairtrade Certification Mark or the Fair Trade Certified Mark, it must come from FLO-CERT inspected and certified producer organizations. [20] The Fairtrade brand is by far the biggest of the fair trade coffee brands. Additional certifiers include IMO (Fair for Life, Social and Fair Trade labels), Eco-Social and Fair Trade USA. Small growers dominate the production of coffee, especially in Latin American countries such as Peru. [15][17][32][18][19][33][25][34][35][36][37][38], There remain many fair trade organizations that adhere more or less to the original objectives of fair trade and that market products through alternative channels where possible and through specialist fair trade shops, but they have a small proportion of the total market. To become certified Fairtrade producers, the cooperatives and their member farmers must operate to certain standards laid down by Fairtrade International. The sale of fair trade handicrafts online has been of particular importance in aiding the development of female artisans in Latin America. FLO-CERT, the for-profit side, handles producer certification, inspecting and certifying producer organizations in more than 50 countries in Africa, Asia, and Latin America. Although the movement emerged in Europe and a vast majority of worldshops are still based on the continent, worldshops can also be found today in North America, Australia, and New Zealand. [180], Segments of the trade justice movement have also criticized fair trade in recent years for allegedly focusing too much on individual small producer groups while stopping short of advocating for immediate trade policy changes that would have a larger effect on disadvantaged producers' lives. 'Fair' coffee workers paid below minimum wage. [149], Studies have shown a significant number of consumers were content to pay higher prices for fair trade products, in the belief that this helps the poor. North American countries are not yet among the top importers of fair trade coffee. London: Routledge, 2007. 59, No. Safeway Inc. began carrying fair trade coffee after individual consumers dropped off postcards asking for it.[100]. Coffee is the fastest expanding fairly traded commodity, and an increasing number of producers are small farmers that own their own land and work in cooperatives. Coffee is one of the most highly traded commodities in the world, yet the farmers who grow it typically earn less than $2 a day. Fair trade seeks to establish a system of direct trade from developing countries to counteract this unfair system. [29][self-published source][12][14][154][13], The Fairtrade Foundation does not monitor how much extra retailers charge for fair trade goods, so it is rarely possible to determine how much extra is charged or how much reaches the producers, in spite of unfair trading legislation. (2011) "Generic Fairtrade Trade Standard," p11, Fairtrade Labelling Organizations International e.V. ", 2005. This joint body decides on how Fairtrade Premiums will be spent to benefit plantation employees. Both of these concerns come up when considering issues in Surat, India. Overseen by a standard-setting body (FLO International) and a certification body (FLO-CERT), the system involves independent auditing of producers and traders to ensure the agreed standards are met. He also points to the failure to disclose when 'the primary commercial intent' is to make money for retailers and distributors in rich countries. Raynolds, Laura. Print. Fairtrade inspection and certification are carried out by FLO-CERT, an independent, for-profit body created by Fairtrade International. Fairtrade changes the way trade works through better prices, decent working conditions and a fairer deal for farmers and workers in developing countries. "[182], Little money may reach the developing countries. One 2015 study in a journal published by the MIT Press concluded that producer benefits were close to zero because there was an oversupply of certification, and only a fraction of produce classified as fair trade was actually sold on fair trade markets, just enough to recoup the costs of certification. In Latin America, cocoa is produced in Costa Rica, Panama, Peru, Bolivia, and Brazil. One common way to spend the social premium of fair trade is to privately invest in public goods that infrastructure and the government are lacking in. Moberg M (2005). In the early 1980s, alternative trading organizations faced major challenges: the novelty of some fair trade products began to wear off, demand reached a plateau, and some handicrafts began to look "tired and old fashioned" in the marketplace. [8] In 2011, over 1.2 million farmers and workers in more than 60 countries participated in Fairtrade International's fair trade system, which included €65 million in fairtrade premium paid to producers for use developing their communities. The Dominican Republic is the largest producer of fair trade bananas, followed by Mexico, Ecuador, and Costa Rica. Africa and other developing countries received low prices for their exported commodities such as cocoa, which caused poverty to abound. Nevertheless, cooperatives such as fair trade-endorsed Kuapa Kokoo in Ghana are often the only Licensed Buying Companies that will give farmers a fair price and not cheat them or rig sales. It will perform field projects and be a clearinghouse on best practices. [87], India, Pakistan and West Africa are the primary exporters of fair trade cotton, although many countries grow fair trade cotton. [84] Amidst the continuous growth, "[p]urchasing patterns of fairtrade products have remained strong despite the global economic downturn. Although many cotton plantations in these countries attained fair trade certification in the 1990s, participation in fair trade further ingrains existing power relations and inequalities that cause poverty in Africa rather than challenging them. Such organizations are typically overseen by Fairtrade International. Fair Trade: Benefits and Drawbacks for Producers. [83] "Fair trade coffee is currently produced in 24 countries in Latin America, Africa and Asia". [40], A study of coffee growers in Guatemala illustrates the effect of fair trade practices on growers. [181], There have been largely political criticisms of fair trade from the left and the right. The aim of the split was to ensure the impartiality, the independence of the certification process and compliance with ISO 65 standards for product certification bodies. [138] In February 2011, the United Kingdom's Fairtrade Foundation became the first NGO to begin certifying gold under the fair trade rubric. [88], Studies in the early 2000s show that the income, education and health of coffee producers involved with Fair Trade in Latin America were improved, versus producers who were not participating. Technified coffee plantations also use chemicals such as fertilizers, insecticides, and fungicides. The Solidaridad informed large audiences of the mistreatment of coffee producers and poor living conditions in developing countries. This would account for a quarter of the fair trade coffee purchases in the United States and 3% of Starbucks' total coffee purchases. Unsustainable practices such as using chemicals and unshaded growing are risky. In terms of education, the social premium can be used to build and furnish schools too.[42]. [8] In 1997, however, 17 national initiatives joined forces to create one international umbrella organisation called the Fair Trade Organization (FLO). The cooperatives incur costs in reaching fair trade political standards, and these are incurred on all production, even if only a small amount is sold at fair trade prices. "Slim pickings: Fairtrade cotton in West Africa." A web movement has begun in the 2000s to provide fair trade items at fair prices to consumers. Fair trade organizations, backed by consumers, are actively engaged in supporting producers, raising awareness, and campaigning for changes in the rules and practice of conventional international trade. In 2006, Italian lawmakers started debating how to introduce a law on fair trade in Parliament. Garment factories in Asian countries including China, Burma, and Bangladesh consistently receive charges of human rights violations, including the use of child labour. The following are some of the largest: In 1998, the first four federations listed above joined together as FINE, an informal association whose goal is to harmonize fair trade standards and guidelines, increase the quality and efficiency of fair trade monitoring systems, and advocate fair trade politically. Fair Trade: The Challenges of Transforming Globalization. Worldshops are often not-for-profit organizations and run by locally based volunteer networks. For the more general article on the fair trade movement, see, Nicholls, A., & Opal, C. (2005). The fair trade movement fixated on coffee first because it is a highly traded commodity for most producing countries, and almost half the world's coffee is produced by smallholder farmers. It appears on products as an independent guarantee that a product has been produced according to Fairtrade political standards. The Fairtrade certification system also attempts to promote long-term business relationships between buyers and sellers, crop prefinancing, and greater transparency throughout the supply chain and more. [87] These violations conflict with the principles outlined by fair trade certifiers. [40], Many farmers around the world are unaware of fair trade practices that they could be implementing to earn a higher wage. Sometimes there is money left over for the farmers. Bolivia has fair trade cooperatives that permit a fair share of money for cocoa producers. [21][pages needed] The cooperatives can, on average, sell only a third of their output as fair trade, because of lack of demand, and sell the rest at world prices. The International Fairtrade Certification Mark is an independent certification mark used in over 50 countries. Business Unusual. Coffee plantations are more likely to be fair trade certified if they use traditional farming practices with shading and without chemicals. A solution was found in 1988, when the first fair trade certification initiative, Max Havelaar, was created in the Netherlands under the initiative of Nico Roozen, Frans Van Der Hoff, and Dutch development NGO Solidaridad. [171] There are problems with the use of boycott campaigns and other pressure to force sellers to stock a product they think ethically suspect. Some felt that these shops were too disconnected from the rhythm and the lifestyle of contemporary developed societies. [citation needed]. Rapaport Fair Trade was established with the goal "to provide ethical education for jewelry suppliers, buyers, first time or seasoned diamond buyers, social activists, students, and anyone interested in jewelry, trends, and ethical luxury. The fair trade movement stemmed from an initiative established by the Dutch development agency, Solidaridad, and aimed to create more equality between coffee producers and roasters. The Fairtrade Foundation does not monitor how much of the extra money paid to the exporting cooperatives reaches the farmer. Fairtrade International started with the coffee industry, but now covers a range of products such as cocoa, fruit, cotton, flowers, tea and others. Student groups have also been increasingly active in the past years promoting fair trade products. These products may include promises of fair labor conditions, protection of the environment, and protection of human rights. The international fair trade label was introduced in 2002 to improve visibility for consumers. Because of their efforts, in 1988 the first bag of Max Havelaar sealed coffee from Mexico was delivered to Holland's Prince Claus, and was launched to be sold in supermarkets throughout Holland. [92] As of 1999, major importers of fair trade coffee included Germany, the Netherlands, Switzerland, and the United Kingdom. Lack of sustainability can be due to pests, diseases that attack cocoa trees, lack of farming supplies, and lack of knowledge about modern farming techniques. Cocoa is a permanent crop, which means that it occupies land for long periods of time and does not need to be replanted after each harvest. In 1969, the first worldshop opened its doors in the Netherlands. Between the late 1980s and the mid-1990s, multiple national initiatives following a fair trade system coexisted within Europe, the US, Canada, and Japan. In 2007, the Director of the Environmental Studies program at the University of Wisconsin-Oshkosh, David Barnhill, started a push to become the first Fair Trade University. [98], As coffee becomes one of the most important export crops in certain regions such as northern Latin America, nature and agriculture are transformed. Some independent brands operate a "virtual company", paying importers, packers and distributors and advertising agencies to handle their brand, for cost reasons. Fair trade claims that its farmers are paid higher prices and are given special advice on increasing yields and quality. In 2005, French parliament member Antoine Herth issued the report "40 proposals to sustain the development of Fair Trade". FLO-CERT works with a network of around 100 independent inspectors that regularly visit producer and trade organizations and report back to FLO-CERT. (2003). In 1998, the European Parliament adopted the "Resolution on Fair Trade" (OJ C 226/73, 20 July 1998), which was followed by the Commission in 1999 that adopted the "Communication from the Commission to the Council on 'Fair Trade'" COM(1999) 619 final, 29 November 1999. Some criticisms have been raised about fair trade systems. The marketing must create a value proposition for the initiative that encompasses the ethical side, as well as the quality of the product. Wilson, B. R. (2009). A lot of emphasis is put on the quality of the coffee when dealing in Fair Trade markets because Fair Trade markets are usually specialized markets that appeal to customers who are motivated by taste rather than price. [86] Cocoa-producing countries in West Africa often form cooperatives that produce fair trade cocoa such as Kuapa Kokoo in Ghana. Fair trade is a social movement which tries to help people who make things in developing countries.The movement helps people to work in better conditions and helps them get more money for what they make. Jacquiau also supports significantly higher fair trade prices in order to maximize the effect since most producers only sell a portion of their crop under fair trade terms. À cette perspective économique s'ajoutent des préoccupations éthiques, sociales et environnementales qui ne font pas toujours l'unani… e.g. [100] In 2006, The Hershey Company acquired Dagoba, an organic and fair trade chocolate brand. The ethics of buying fair trade from a company that is not committed to the cause are questionable; these products are only making a small dent in a big company even though these companies' products account for a significant portion of global fair trade.[100]. Some believe the fair trade system is not radical enough. Organic cotton is generally defined as cotton that is grown organically in subtropical countries such as India, Turkey, China, and parts of the USA from non-genetically modified plants, and without the use of any synthetic agricultural chemicals such as fertilizers or pesticides aside from the ones allowed by the certified organic labeling. The parties involved agreed to a six-article plan: Fair trade textiles are primarily made from fair trade cotton. The movement focuses in particular on commodities, or products that are typically exported from developing countries to developed countries, but is also used in domestic markets (e.g., Brazil, England, and Bangladesh), most notably for handicrafts, coffee, cocoa, wine, sugar, fruit, flowers, and gold.

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