1. 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 – certification, changes at Sainsbury’s and Cadbury’s with regards to Fair Trade and the implications of Brexit on Fair Trade.

2. Fair Trade Verifications
Sainsbury’s
Cadbury
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 – verification, changes at Sainsbury’s and Cadbury’s with regards to Fair Trade and the implications of Brexit on Fair Trade.

3. Changes in the use of Fair Trade Verification

4. Changes in the use of Fair Trade Verification: Context
Media coverage of changes by key brands regarding how they promote commitment to Fair Trade
E.g. Cadbury Dairy Milk products and Sainsbury’s tea
There has been some significant media coverage in recent weeks and months of changes being introduced by some key brands to how they promote their commitment to Fair Trade and sustainability.
This has most notably been in relation to Cadbury’s Dairy Milk products and Sainsbury’s own brand red and gold label tea. 

5. Changes in the use of Fair Trade Verification: Issues
Consumer Confusion
Lack of transparency
A Charter of Fair Trade Principles
Changes in the use of Fair Trade verifications can cause consumer confusion and a lack of transparency
The Charter of Fair Trade Principles is a single international reference point for Fair Trade, adopted by World Fair Trade Organization (WFTO) and Fairtrade International since 2009.
It provides concise explanation of Fair Trade principles.
Core Principles include:
Market Access for marginalised producers
Sustainable & equitable trading relationships
Capacity building & empowerment
Consumer awareness raising & advocacy
Fair Trade as a “social contract”
(more details of principles in link in slide)
In these complicated and changeable times it is important to use the core Fair Trade principles to guide you

6. Changes in the use of Fair Trade Verification: Forum’s Position
What Fair Trade verifications does the Forum support?
A charter of Fair Trade Principles
What does the Scottish Trade Forum support?
The Scottish Fair Trade Forum, as a network organisation, is not solely committed to promoting any particular Fair Trade verification scheme. We support the Fairtrade Mark certification, we are also a network member of the World Fair Trade Organisation (WFTO) and we support fairly traded initiatives that adhere to the principles set out in ‘A Charter of Fair Trade Principles’
Some products have the Fairtrade Mark to indicate that they have been produced to these standards.
Other businesses and products are part of the WFTO guarantee system to show that they adhere to these principles.
In other cases, we become aware that products are being produced adhering to the principles but have not applied for various reasons for verification. The key feature for all these products and businesses is that they follow the principles. 

7. Sainsbury’s

8. Sainsbury’s: Context
Sainsbury’s have announced that they are no longer going to have Fairtrade certification for their gold and red label tea
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. 

9. 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

10. Sainsbury’s: Forum’s Position
Issue of producer empowerment
Principles of Fair Trade
The Forum does not support this initiative by Sainsbury’s
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
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.

11. Cadbury

12. Working in partnership with the Fairtrade Foundation
Cadbury: Context
Mondelez have abandoned the Fairtrade Mark on their Cadbury Dairy Milk products
Cocoa Life
Working in partnership with the Fairtrade Foundation
Mondelez International (the multinational which Cadbury’s is a part of) announced in November 2016 their decision to abandon the Fairtrade Mark on its Cadbury’s Dairy Milk Products
Cadbury’s have taken the decisions to use their own initiative Cocoa Life
The Cocoa Life initiative was established in 2012 in partnership with large corporates from their supply chain and NGOs including the Fairtrade Foundation.
Cadbury’s Dairy Milk products will no longer carry the Fairtrade Mark as they will not have Fairtrade certification.
The Fairtrade Foundation logo will still appear on the back of the packaging as a reflection of their partnership.

13. Evidence that the farmers support the initiative
Cadbury: Issues
Farmers will receive a competitive price for their cocoa & additional loyalty cash payments
Evidence that the farmers support the initiative
The evidence from the Fairtrade Foundation is that through Cocoa Life, the farmers and producers will not be any worse off than they would have been with Fairtrade
The farmers will receive a competitive price for the cocoa, additional loyalty cash payments plus further investments in projects and support to improve their farming practices and implement community action plans
This is in contrast to the example of Sainsbury's – there is evidence from the Fairtrade Foundation that with Cadbury's the cocoa farmers support the initiative.

14. Cadbury: Forum’s Position
Advice to consumers
Importance of principles of Fair Trade
The Forum is not solely committed to promoting Fairtrade Mark certification. We also support WFTO verification and other fairly traded initiative. The key point is that initiatives adhere to the principles set out in ‘A Charter of Fair Trade Principles’.
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.
On Cocoa Life, there seems to be evidence that farmers and workers will be not be any worse off and that many more farmers and their communities will benefit and also that the initiative has the support of the representatives of the producers. However, we do not see Cocoa Life as a Fair Trade scheme and therefore we do not believe that it is within the Forum’s role to promote it. 
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 verification and accreditation – that’s why it is important to use core principles to guide us.

15. Brexit

16. 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.

17. 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:
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.

18. 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
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

19. Any Questions? www.sftf.org.uk