19/06/2020 Dear CLAC Producer, I Hope That You and Your Family Are

19/06/2020

Dear CLAC Producer,

I hope that you and your family are staying well during these challenging times.

As a valued member of the Fairtrade system, I am writing to address news we’ve received that some of our Fairtrade- certified producers have been contacted directly by Paul Rice, CEO of Fair Trade USA.

Although Fair Trade USA separated from the Fairtrade system in 2011, FLOCERT continued to offer Fair Trade USA data reporting services between 2014 and the first half of 2019. This included certification, supply chain data and premium use information.

All this time, Fair Trade USA did not contribute to CLAC providing support to you. Nonetheless, Fairtrade and CLAC continued to provide technical assistance and services to all producers selling on Fairtrade terms, including those producers selling to Fair Trade USA supply chains. This support amounts to approximately 2M EUR annually.

On 31 May 2020, we agreed to end the FLOCERT contract with Fair Trade USA and effectively severed all relation with them.

We understand that Fair Trade USA is now creating a structure to access data directly through you, and that Fair Trade USA might intend to charge producers for developing and access that structure. In doing so, Fair Trade USA is now bypassing CLAC and directly approaching producers, like you, who hold FLOCERT certificates. We were not informed of any of this in advance. Their letter was as surprising to us as it was surprising to you.

The correspondence from Fair Trade USA may offer you an “opportunity” to have your FLOCERT certificate recognized, allowing you to become part of a Fair Trade USA producer program. We understand that Fair Trade USA has offered to waive the initial $1,000 USD annual fee for some producers who agree to sign up within a specified time period. The communication from Fair Trade USA mentions vague benefits and services. Many producers have told us they are confused by this approach.

In this context, the Fairtrade International system, including the Producer Networks in Africa (Fairtrade Africa), Asia (NAPP), and Latin America/Caribbean (CLAC), want to be very clear in our position on these actions by Fair Trade USA. We cannot endorse their communication or their approach. We cannot explain what the $1,000 USD charged by Fair Trade USA’s annual fee will cover. We cannot explain what kind of benefits –if any- will be delivered by Fair Trade USA to you. We cannot confirm if your FLOCERT certificate will continue to be recognized in the future, or whether you will be required to pay extra fees to be recognized by the separate assurance system being developed by Fair Trade USA. Finally, we cannot tell you how the data you are invited to provide to Fair Trade USA will be used by them.

We do acknowledge that as a producer organization, you fully own your data/information and have the right to share this data with whomever you deem appropriate and necessary. FLOCERT or Fairtrade International will continue to work for and with you regardless of your decision.

We promise to always be transparent in the types of services and support you receive through the Fairtrade system, as well as the costs required to participate in system. With Fairtrade International, producers pay only a certification fee, which covers the costs of audits. You are not charged for supplying data to FLOCERT or to benefit from the certification and impact data you provide to Fairtrade. And, as we’ve demonstrated throughout the years, we will continue to expand our services and support to meet the needs that you and other producers identify as priorities.

As a producer, you are a co-owner of the Fairtrade International system and are at the heart of everything we do and every decision we take. Our ongoing commitment is to promote fairer trading conditions, strengthen your position in trade, and to support you to have more control over your livelihood.

We trust that you have continue to find value in the relationships with and services provided by Fairtrade and CLAC. We are here to answer any questions you may have about the correspondence mentioned above, and look forward to continuing to work together to make trade fair.

Cheers,

Dario Soto Abril Xiomara Paredes CEO CEO Fairtrade International CLAC