April, 2008
Annexe: Background to Fair Trade
Initiatives
The
first fair trade initiatives sprang up in the early
1970s in the framework of the development movement.
Non-profit organisations based in countries in the
global north (mainly European), started to import
products originating from the global south and to
market them outside the conventional commercial
sector through world shops, charity shops and solidarity
networks.
The Fairtrade label, operated by Fairtrade Labelling
Organisations International (FLO), was created
so that fair trade products could be sold outside
of these niche markets. Both types of fair trade
continue to this day, and fair trade has grown
since the 1970s into a multi-million pound trade.
There is no legal definition of fair trade, but
it is generally used to mean a system of trade
that supports disadvantaged producers by paying
them an agreed, fair price plus an additional
financial premium in many cases, providing market
access, eliminating agents ('middlemen') as much
as possible, building producer capacity and supporting
them to meet minimum standards relating to children,
women, working conditions and the environment.
There are two main international networks involved
in the fair trade movement relating to textiles
and garments:
Fairtrade labelled cotton:
FLO, Fairtrade Labelling Organisations International
www.fairtrade.net
One part of the FLO system sets Fairtrade standards
for traders as well as for producers and provides
producer support. The other part certifies that
the FLO standards are met, which means the Fairtrade
label can be applied to products. Organisations
such as Max Havelaar, Transfair, the Fairtrade
Foundation are part of the FLO system. In contrast
to ethical trade, the Fairtrade label granted
by FLO applies to specific products and not to
whole company practices.
FLO launched a Fairtrade label for seed-cotton
production in 2005. This does not guarantee Fairtrade
standards throughout the whole of the garment
supply chain, but just for the seed-cotton producers.
The Clean Clothes Campaign recognises the real
need to improve terms of trade and conditions
faced by cotton farmers in the global souths and
the dire conditions they often endure.
Both fair trade and mainstream brands and retailers
sell Fairtrade labelled cotton clothing. In the
case of the mainstream companies, Martin Hearson
from Labour Behind the Label (the Clean Clothes
Campaign platform in the UK) explains that these
companies need 'to convince us that their commitment
to workers' rights is real and that Fairtrade
cotton is not just a fig leaf to cover the embarrassment
of exploitation in their supply chains. We welcome
these commitments to Fairtrade cotton and hope
they will be accompanied by improvements in working
conditions throughout the rest of these companies'
supply chains'.
The following websites provide useful information
about Fairtrade labelled cotton clothes:
www.labourbehindthelabel.org/resources/reports/20/index.php
for Labour Behind the Label's view on Fairtrade.
www.cleanclothes.org/companies/max_havelaar.htm
for information about Fairtrade cotton in the
Swiss market
www.fairtrade.org.uk/includes/documents/cm_docs/2008/c/cotton_qanda.pdf
for the Fairtrade Foundation's Q&A on Fairtrade
cotton
IFAT, International Fair
Trade Association www.ifat.org
This is a global network of organisations that
seek to enable disadvantaged producers to improve
their livelihoods and communities through fairer
trade. Members of the network can include producer
cooperatives, export companies, importers, retailers
and individuals. Members' trading practices are
monitored through self-assessment every two years
against the IFAT's standards. Members share their
self-assessment reports with trading partners
for peer review and each year a percentage of
members, chosen at random, have their self-assessment
process verified by an external inspector. Standards
include working conditions, child labour and the
environment. There are a number of IFAT members
involved in selling clothing.