The International Fair Trade Charter
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The International Fair Trade Charter How the Global Fair Trade Movement works to transform trade in order to achieve justice, equity and sustainability for people and planet. Launched on 25 September 2018 Copyright TransFair e.V. CONTENTS OVERVIEW CHAPTER THREE 03 OVERVIEW 17 FAIR TRADE’S UNIQUE APPROACH 04 ABOUT THE INTERNATIONAL FAIR 18 CREATING THE CONDITIONS TRADE CHARTER FOR FAIR TRADE 06 THERE IS ANOTHER WAY 19 ACHIEVING INCLUSIVE ECONOMIC GROWTH 07 IMPORTANT NOTICE ON USE OF THIS CHARTER 19 PROVIDING DECENT WORK AND HELPING TO IMPROVE WAGES AND INCOMES 20 EMPOWERING WOMEN CHAPTER ONE 20 PROTECTING THE RIGHTS OF CHILDREN AND INVESTING IN THE NEXT GENERATION 09 INTRODUCTION 21 NURTURING BIODIVERSITY AND THE ENVIRONMENT 10 BACKGROUND TO THE CHARTER 23 INFLUENCING PUBLIC POLICIES 10 OBJECTIVES OF THE CHARTER 23 INVOLVING CITIZENS IN BUILDING 11 FAIR TRADE’S VISION A FAIR WORLD 11 DEFINITION OF FAIR TRADE CHAPTER FOUR CHAPTER TWO 25 FAIR TRADE’S IMPACT AND ACHIEVEMENTS 13 THE NEED FOR FAIR TRADE 28 APPENDIX 29 NOTES Pebble Hathay Bunano AN OVERVIEW AN OVERVIEW AN OVERVIEW OF THE INTERNATIONAL FAIR TRADE CHARTER There is another way 02 03 AN OVERVIEW AN OVERVIEW “Fair Trade is based on modes of production THE RICHEST 1% NOW OWN AS MUCH WEALTH AS THE REST and trading that put people and planet before OF THE WORLD financial profit.” ABOUT THE INTERNATIONAL FAIR TRADE CHARTER All over the world and for many cen- Trade actors explain how their work con- turies, people have developed econom- nects with the shared values and generic ic and commercial relations based on approach, and to help others who work mutual benefit and solidarity. Fair Trade with Fair Trade to recognise those values GLOBAL SUPPLY CHAIN applies these ideas to the contemporary and approaches. challenges of international trade in a globalised world. Global trade has grown spectacularly in recent decades. This has been a major Consumers The Fair Trade movement is made up of contributor to economic growth in individuals, organizations and networks many countries but the gains have not that share a common vision of a world been shared evenly. The models of trade in which justice, equity and sustainable promoted by global institutions and Retailers development are at the heart of trade large corporations have not delivered structures and practices so that every- on their promise to eliminate poverty one, through their work, can maintain and have caused unprecedented levels of Processors & Brands a decent and dignified livelihood and inequality. develop their full human potential. Markets are typically dominated by a World Fair Trade Organization and handful of international firms who have Traders Fairtrade International have initiated the power to set the terms of trade for the process of drafting this Charter their suppliers, forcing prices down, in consultation with other actors and often to levels below the full costs of with the aim of producing a common production. This leaves small producers Supply Chain reference document for the Global Fair and workers struggling to earn a living Farmers & Workers Trade movement. It seeks to help Fair wage and vulnerable to exploitation. Input Suppliers 04 05 AN OVERVIEW AN OVERVIEW THERE IS ANOTHER WAY! IMPORTANT NOTICE ON THE USE OF THIS CHARTER Fair Trade is based on modes of pro- creates more opportunities for produc- duction and trading that put people ers and their business partners. and planet before financial profit. Fair The Charter offers a concise explanation or as a standard by which the approach Trade also connects producers and The failures of the conventional trading of the generic objectives and approach- of specific organizations can be assessed. consumers through greater transparency system are deep-rooted and complex. es that are common to most Fair Trade of supply chains. By demonstrating that Fair Trade takes a holistic approach to initiatives. This document cannot therefore be greater justice in world trade is possible, tackling these by combining many indi- used to justify the Fair Trade claims or Fair Trade also seeks to involve citizens vidual approaches. It is not possible for such a document to credentials of any organisation, busi- in rewriting the rules of trade with the act as a manual of Fair Trade practices ness, or network. needs of small producers, workers and By supporting artisans, farmers and consumers at their heart. Fair Trade is workers to build democratic organi- not charity but a partnership for change zations, Fair Trade seeks to empower and development through trade. them to take more control over their own future and secure outcomes based 1. Fair Trade starts with producers work- on justice for people and planet. In this GENDER ing together in democratic organisations way, Fair Trade contributes to many of EQUITY to build stronger businesses that can the Sustainable Development Goals. INCLUSIVE ECONOMIC compete in international markets and GROWTH secure improved terms of trade. Traditional models of Fair Trade, based on the sale of products from Africa, Asia SECURITY 2. Trading enterprises help to connect and Latin America & the Caribbean to FOOD producers and consumers in a partner- markets in Europe, North America and ship for change. Pioneering 100% Fair the Pacific remain important but Fair DECENTWORK Trade enterprises have been joined by Trade ideas are increasingly a part of many mainstream commercial compa- initiatives to address social, economic and nies who recognise the importance of environmental challenges everywhere in supporting Fair Trade as part of their the world. FAIR TRADE FIRST” TRADE sustainability programmes. “PEOPLE Fair Trade’s work depends on trust; the POLICIES 3. Fair Trade helps consumers to act re- trust of consumers who buy Fair Trade sponsibly by choosing products that offer products and the trust of those who invest SUSTAINABLE a better deal to the people at the other in new services and programmes. Fair LIVELIHOODS end of the supply chain. Fair Trade also Trade Organizations are committed to strengthens the voice of producers and protecting that trust, firstly by adopting THRIVING consumers as citizens, helping them lobby the highest possible standards of integri- COMMUNITIES their governments for fairer trade rules. ty, transparency and accountability, and ECOLOGICAL secondly by striving for continual im- BALANCE 4. By demonstrating the commercial provement of its impact by learning from success and development impact of trad- monitoring and evaluation of their work. ing fairly, the market grows, and this 06 07 INTRODUCTION CHAPTER 1 INTRODUCTION Justice, equity and sustainable development should be at the heart of trade structures 09 THE FAIR TRADE CHARTER INTRODUCTION BACKGROUND TO THE CHARTER FAIR TRADE’S VISION This document uses the term of “Fair al, the two global networks that have The Fair Trade movement shares a vision so that everyone, through their work, Trade Organizations” to include all jointly led the process. of a world in which justice, equity and can maintain a decent and dignified organizations and networks who tackle sustainable development are at the livelihood and develop their full human poverty and inequality through trade as The updating of the Charter provides an heart of trade structures and practices potential. part of their mission. opportunity to restate the fundamental values of Fair Trade that unite the diverse This includes production, exchange and range of organizations and networks that marketing of goods as part of Fair Trade make up the Global Fair Trade movement. initiatives as well as promotion, aware- This is important at a time when the DEFINITION OF FAIR TRADE ness raising, and advocacy of the concept success of Fair Trade is encouraging more of Fair Trade. widespread use of the term, increasing the need for a common reference point. This document revises and updates the The main global networks of the Fair Trade movement agreed the following definition 2009 Charter of Fair Trade Principles The new Charter also seeks to highlight of Fair Trade in 2001(i): which has been widely used as a primary Fair Trade’s longstanding role in address- reference document for policy and ad- ing challenges such as inequality, gender vocacy work. An international group of rights, climate change and other topics of experts has advised the World Fair Trade the United Nations Sustainable Develop- Fair Trade is a trading partnership, based on dialogue, Organization and Fairtrade Internation- ment Goals. transparency and respect, that seeks greater equity in international trade. It contributes to sustainable OBJECTIVES OF THE CHARTER development by offering better trading conditions to, and securing the rights of, marginalized producers The Charter offers a general explanation specific missions and strategies with the of the shared vision and values of the common philosophy of the movement, and workers – especially in the South. Global Fair Trade movement. It has three and to promote collaboration with the main aims: solidarity economy, organic agriculture movements and others that fight for sim- 1. To support the work of Fair Trade Or- ilar goals to the Fair Trade movement. Fair Trade Organizations, backed by consumers, are ganizations in raising awareness among consumers and citizens of the importance 3. To enable others who work with Fair engaged actively in supporting producers, awareness and impact of Fair Trade, so that more peo- Trade Organizations (in government, aca- ple will be inspired to join and support it.