Fair Trade: Topical Issues This is the first ‘Fair Trade: Topical Issues’ presentation which covers current issues and discussion points relating to Fair Trade. New versions of these presentations will be circulated to campaigners as and when they become necessary when new issues arise. We hope these presentations will enable campaigners to feel they are kept up to date with topical issues relating to Fair Trade and will allow you to feel prepared if you are asked questions by others on the subjects covered. This presentation will cover changes to verification, the International Fair Trade Charter, the implications of Brexit on Fair Trade and change to Traidcraft.

International Fair Trade Charter Sainsbury’s Traidcraft Brexit This is the first ‘Fair Trade: Topical Issues’ presentation which covers current issues and discussion points relating to Fair Trade. New versions of these presentations will be circulated to campaigners as and when they become necessary when new issues arise. We hope these presentations will enable campaigners to feel they are kept up to date with topical issues relating to Fair Trade and will allow you to feel prepared if you are asked questions by others on the subjects covered. This presentation will cover changes to verification, the International Fair Trade Charter, the implications of Brexit on Fair Trade and change to Traidcraft.

International Fair Trade Charter The new International Fair Trade Charter was launched on 25 September 2018. The Charter sets down the fundamental values of Fair Trade and defines a common vision towards achieving the Sustainable Development Goals (SDGs).  The Charter was initiated by Fairtrade International and the World Fair Trade Organization and leading figures from both networks were in Edinburgh to celebrate its launch. Read more about the Charter here:  http://www.scottishfairtradeforum.org.uk/take-action/international/international-fair-trade-charter.html#.W_vQA-j7RaQ

International Fair Trade Charter: Context Sustainable Development Goals (SDGs) Changes to world trade, economics and politics

International Fair Trade Charter: Issues WFTO and Fairtrade International Diversity of approach

International Fair Trade Charter: Forum’s Position Launch of Charter Recognition of the Charter  

Sainsbury’s

Other changes to labelling e.g.Cadbury Sainsbury’s: Context Sainsbury’s announced that they are no longer going to have Fairtrade certification for their gold and red label tea Other changes to labelling e.g.Cadbury What is happening at Sainsbury’s? Sainsbury’s is the largest retailer of Fairtrade products in the UK Recently, Sainsbury’s announced that it is no longer going to have Fairtrade certification for its gold and red label tea and replace it with their own ‘Fairly Traded’ label instead. Under the Sainsbury’s Foundation scheme, it seems the cash bonus which farmers receive on top of that they earn for their tea (similar to the Fairtrade Premium) will no longer go directly to them. It seems that, instead decisions about what to do with this money will be made by a Board in the UK which means that producers are unable to decide for themselves how to invest any premium. A key concern is not that Sainsbury’s are no longer going to use a particular verification for some products but that it is labelling the products ‘Fairly Traded’ when it does not seem to meet all the principles of Fair Trade. This can only lead to consumer confusion and lack of clarity and transparency. 

Consumer confusion & lack of clarity and transparency Sainsbury’s: Issues Producer empowerment Consumer confusion & lack of clarity and transparency Forum correspondence with Mike Coupe, the CEO of Sainsbury’s One of the principles of Fair Trade is that producers are empowered through capacity building and we do not believe that this is the case in the Sainsbury’s Foundation model as it appears that the equivalent of Fairtrade Premiums will be taken out of the control of the farmers and the producers and decisions will be made by a Board in the UK We have sought clarification and reassurance on the issue of empowerment from Sainsbury's but as yet we have not received such reassurance. You can read our correspondence with Mike Coupe, the CEO of Sainsbury's here. Labelling products as ‘Fairly Traded’ when it doesn’t appear that they meet all the principles of Fair Trade will likely lead to consumer confusion and lack of clarity and transparency.

Sainsbury’s: Forum’s Position Issue of producer empowerment Principles of Fair Trade The Forum does not support this initiative by Sainsbury’s Sainsbury’s response – some progress but not end of the matter The reason why the Forum take issue with this decision by Sainsbury’s to move away from the use of the Fairtrade Mark on their own label tea is that we do not see any evidence that their new approach will allow producers to decide for themselves how to invest any premium. Our key concern is not that Sainsbury’s are no longer going to use a particular certification for some products but that it is labelling the products ‘Fairly Traded’ when it does not seem to meet all the principles of Fair Trade. This can only lead to consumer confusion and lack of clarity and transparency.  Key to Fair Trade is the empowerment of farmers and workers. In the case of this Sainsbury’s initiative, the representatives of the farmers and workers do not support the initiative.  A group of charities including CAFOD, Christian Aid, Traidcraft Exchange, the Women’s Institute, Tearfund and Global Justice Now have launched a campaign with the aim of stopping Sainsbury’s from ditching Fairtrade including a day of action towards Sainsbury’s. More information about this and resources for getting involved are available from www.dontditchfairtrade.com Our advice to consumers would be to look for products or businesses that have some form of Fair Trade verification such as the Fairtrade Mark or WFTO guarantee system or that they can be sure from their own knowledge are fairly traded by adhering to the Principles of Fair Trade.  The Scottish Fair Trade Forum does not support the Sainsbury’s Foundation plan as it seems to be reversing empowerment for producers and we will continue to support the representatives of the farmers and workers in opposing this initiative. We will continue to prioritise the WFTO guarantee system, Fairtrade Mark products traded by Fair Trade Organisations and fairly traded products where there is evidence that they adhere to Fair Trade principles.  These are complicated and changing times for certification and accreditation – that’s why it is important to use core principles to guide us.

Traidcraft

Traidcraft: Context Traidcraft is a pioneer of Fair Trade Supplying retail outlets and its own Fair Traders

Traidcraft: Issues Announced at AGM that it would cease its current trading model at the end of 2018 The Board has agreed a new smaller trading model

Traidcraft: Forum’s Position Importance of Traidcraft as iconic Fair Trade business with wide network Need to ensure supply of Fair Trade products to retailers and Fair Traders in Scotland

Brexit

New UK trade policy as a result of Brexit Brexit: Context New UK trade policy as a result of Brexit Trade policy crucial for economic development Important that trade policy is aligned to principles of trade justice The UK’s decision to leave the EU means that, for the first time in 40 years, trade policy will return to UK government competence. Getting trade policy right is crucial to achieving the SDGs and central to economic development EU measures mean that UK imports from some of the poorest countries are exempt from charges and taxes – it’s important that these countries don’t lose out when new trade deals are written A UK trade policy aligned to principles of trade justice can support the aspirations and interests of Southern countries, the realisation of human rights and the protection of the environment. However, this is unlikely to be the outcome if the UK maintains the status quo and in particular the current weak processes for scrutiny of trade agreements.

How will Brexit impact the global south Brexit: Issues How will Brexit impact the global south Priorities for trade policy reform Building a new approach to international trade How will Brexit impact the Global South? Fall in the value of the pound will reduce UK aid and remittance flows from the UK to Southern countries As the UK regains responsibility for its trade policy it will need to develop new trade arrangements with Southern countries The UK Government announced in June that it would ensure stability by translating the EU arrangements with Southern Countries into UK law It also committed to exploring options to expand these relationships Priorities for Trade Policy Reform? These ideas were provided by the Trade Justice Movement at our conference on September 2017 (full presentation available here: http://www.scottishfairtradeforum.org.uk/newsroom/latest-news/news/sftf-campaigner-conference-2017.html#.Wbux-o-cEis) Ensure democracy and transparency in the negotiation and ratification of trade agreements Expand market access for Southern countries Expand everything but arms to all southern countries Expand the products that are included in the Generalise Scheme of Preferences Increase the amount that UK tariffs are reduced to that Southern countries can benefit more from trade with UK Building a new approach to international trade As the UK develops its new trade policy we need to remember free trade is not the only way we can trade with other countries The UK can choose to develop trade policy that aims to improve living standards, reduce poverty and facilitate the transition to a sustainable economy In December 2016 Fairtrade Foundation supporters and staff delivered a letter to 10 downing street which was signed by more than 50,000 supporters. The letter asked Theresa May to publicly commit to post-Brexit trade deals and business policies which will tackle global poverty and deliver a fair deal to farmers and workers in developing countries.

Brexit: Forum’s Position Supports work which Fairtrade Foundation, Traidcraft, Oxfam, Christian Aid & Trade Justice Movement have done Response to the UK Government’s Trade White Paper Impact on producers and Fair Trade businesses is a primary concern The Forum supports the work which organisations such as the Fairtrade Foundation, Traidcraft, Oxfam, Christian Aid and the Trade Justice Movement have done to try to ensure that UK trade policy tackles global poverty as we leave the EU. We submitted a response to the UK Government’s Trade White Paper calling on the UK Government to put in place at least equivalent rules following Brexit to ensure that developing countries do not lose out in post Brexit trade negotiations. It is crucial that open and transparent negotiations take place to make sure this does not happen

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