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The World Fair Trade Organisation

Foreign Trade and International Organisations

Raschonda Rockafella

on 12 April 2013

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Transcript of The World Fair Trade Organisation

World Fair Trade Organization Index History
10 principles
Fair Trade
How do they realize their aims?
Discussion Quiz History Structure Fair Trade 10 Principles Criticisms 10 Principles Discussion Fair Trade Aims of the WFTO How does the WFTO realize the aims? 6) no discrimination

7) good working conditions

8) capacity building
= skill development by Linda Bender, Ronja Borchers and Merten Kuhl must be followed by all organisations
that are part of the WFTO Definition trading partnership, based on dialogue, transparency and respect seeks greater equity in international trade Offers better trading conditions for marginalized producers Protects the rights of the producers How does it work? are produced, traded and sold Fair Trade products and verified by assurance systems in accordance with Fair Trade Prinicples two distinct but complementary channels: The integrated supply chain route The product certification route products are imported and/or distributed by organisations that have Fair Trade at the core of their mission and activities products comply international
standards produced, traded, processed and packaged in accordance with the specific requirements of the international standards they are certified indicating that they have been Pro's Con's improve livelihoods and communities of producers development opportunities for disadvantaged producers raise awareness of consumers changes in international trade set an example of trading partnership by improving market access strengthening producer organisations paying a better price continuity in the trading relationship Especially women and indigenous people No exploitation of children during the production process through dialogue, transparency and respect protect the human rights ! Vision and Mission of the WFTO trade structures have been transformed in favour of the poor Mission through improve livelihoods and communities Mission global network and advocate for Fair Trade, ensuring producer voices are heard. Mission of the WFTO Mission The interests of producers, should be the main focus Vision of the WFTO The monitoring system WFTO-members show their commitment to Fair Trade increase public trust in Fair Trade organisations Self-Assessment Reports Review and Feedback Approval External verification provides "x-ray" of the organisation reports on their adherence to the ten principles questions must be answered to decide if an organisation acts according to the values evidence to support statements, e.g. annual reports (SAR) SAR's are reviewed by the WFTO's monitoring department Feedback helps members to understand the expectations and actions

to improve their SAR's SAR and feedback are submitted to external readers review the documentation and score each member a member must achieve a minimum score for their SAR to be approved third-party verification is performed in the case of complaints or to resolve other issues regarding the SAR better working conditions for farmers and artisans farmers are assured a minimum price- which can never fall below the market price protection from exploitation by large scale buyers the producers do not benefit from the higher retail price Fair Trade leaves farmers behind who cannot organise or afford the fees Fair Trade products are not attractive enough for big supermarket chains Economic issues Fair Trade excludes some countries and farmers Fair Trade fees are too high, which prevents farmers to participate Fair Trade is inefficient in transfering money to the producers Trade issues Fair Trade cannot protect farmers from market volatility Free trade has greater capacity to lift people out of poverty Farmers outside the Fair Trade system are worse off 9) promoting fair trade

10) environment 10 Principles 10 Principles to move from income insecurity to economic self-sufficiency provides customers informations about the organisation itself, the products, the market 1) creating opportunities
poverty reduction

2) transparency & accoutability
= transparent relations The WFTO logo is for organisations who show commitment to Fair Trade. Do you think that the higher price for FT-goods is justified?

E.g. would you buy the common chocolate for 0,80 EURO or a Fair Trade chocolate for 1,90 EURO? "Fair trade is trade, not aid"

What do you think about it? Direct relationship between buyer and producer organisations NPO began to buy crafts from Puerto Rico in the late 1940's In 1958 the 1st Fair Trade Shop opened In 1973 the 1st Fair Trade Coffee was imported In 1989 IFAT was founded In 1997 FLO
was formed Installation of a
monitoring system 3) fair trading practices
longterm relationships

4) a fair price

5) ensuring no child labour
and forced labour Thank you
for your attention An A Any questions? Conclusion What is the WFTO? "The WFTO is the voice of Fair Trade and a guardian of Fair Trade values"

The members represent the FT chain from production to sale What can they do? communicate arrange control members Does Fair Trade secure producers
against the volatility of market price? & promote sustainable development and justice
Full transcript