Cotton on to Fairtrade INTRODUCTI0N

cotton on to fairtrade INTRODUCTI0N Fairtrade Ireland is undertaking a 3 year campaign to promote the sales of Fairtrade Certified Cotton in Ireland. This report aims to provide a brief introduction to global trade in cotton, injustices associated with cotton production, and to raise awareness of Fairtrade Certified Cotton. Cotton is a highly sought-after humanitarian and corrupt practices commodity in the global market and in cotton producing countries such is central to the textile industry but as Uzbekistan*. Widespread uses of trade in cotton is radically skewed child labour and inordinate because of enormous subsidies government control over cotton paid by governments in developed producers have given rise to issues countries to their cotton farmers. of social justice and human rights This has a direct impact on cotton that are alarming. Europe, farmers in developing countries. The unfortunately, is one of the biggest cotton plant favours dry tropical and buyers of such tainted Uzbek cotton. subtropical climates and is grown as a cash crop in a number of Fairtrade Certified Cotton ensures countries in the global South. the consumer that the person at Cotton farmers in Africa and Asia, the very bottom of the supply however, struggle against a global chain, who has grown the cotton, trade system in which countries has been paid a fair price for his such as the USA wield extraordinary crop. economic power. In the case of West Africa losses are estimated to Fairtrade Certified Cotton is be in the region of $250m per produced under strict Fairtrade annum as a result of USA and EU standards (including standards for subsidies. Cotton is of crucial the environment) and minimum significance to several developing price guidelines. During this three countries. Out of the 65 cotton- year campaign Fairtrade Ireland will producing countries in 2007/2008, encourage Irish consumers to ask 52 were developing countries. Out where their cotton comes from and of these 21 were indexed by the under what conditions they have United Nations are being among the been produced. This will be a least developed countries in the significant step in moving cotton world (LDCs). onto Fairtrade. Another significant area related to *UN General Assembly Report of the Special global cotton production and trade is Rapporteur on torture and other cruel, inhuman or degrading treatment or punishment, evidence of systemic anti- A/HRC/7/3/Add.2, 18 February 2008 Cotton on to Fairtrade 3 FAIRTRADE CERTIFiED CoTTON Since the introduction of Fairtrade them to invest in community Minimum Prices for cotton in 2004, projects, such as schools, roads or Fairtrade has shown that it can health care facilities. These substantially improve the lives of methods ensure that Fairtrade cotton producers in developing cotton producers are able to countries. By selling to the operate in a global industry which Fairtrade market, cotton farmers otherwise is exceptionally biased have the security that they will towards developed countries. receive a Minimum Price which aims to cover their average costs Fairtrade cotton standards prohibit of sustainable production. A the use of genetically modified Fairtrade minimum price for seeds in production. They also organic cotton is set around 20% ensure that every operator in the higher than the Fairtrade textile supply chain that takes conventional minimum price. ownership of Fairtrade Certified Cotton submits independent In addition to the Fairtrade price, verification documenting their the buyers must pay a Fairtrade compliance with 11 International Premium of US$ 5 cents per kilo of Labour Organisation conventions. Fairtrade seed cotton. This is used by the producer organizations for social and economic investments such as education and health services, processing equipment and loans to members. Environmental standards restrict the use of agrochemicals and encourage sustainability. Pre-export lines of credit are given to the producer organizations if requested, of up to 60 % of the purchase price.Producer organisations also receive a Fairtrade Premium which allows 4 Cotton on to Fairtrade THE DOHA DEVELOPMENT ROUND Two months after 9/11, world seen also as an appropriate leaders came together in a spirit of response by the international multilateral co-operation. In the community following the collapse Gulf state of Qatar,143 member two years earlier of a WTO countries of the World Trade Ministerial meeting in Seattle. Organisation (WTO) launched in Then, developing countries walked November 2001 a process aimed out of negotiations frustrated that at creating new global trade rules. their priorities were sidelined by the Known as the Doha Development United States and the European Round (DDR), its stated aim was to Union. It marked a sea change in stimulate growth, opportunity and the balance of power within the wealth in developing countries. In WTO. Until that moment, the WTO, this way, the likelihood of terrorist formed six years earlier, was atrocities recurring would, it was exclusively a forum where rich argued, be reduced. Nearly 10 nations imposed trade rules on years later, least developed nations poorer ones. are still waiting for global leaders to deliver on their lofty promises. The establishment of the DDR was Cotton on to Fairtrade 5 THE Cotton 4 Swiftly after the Doha trade world’s ever increasing desire for negotiations began, four cotton cotton products. But a wall of growing, poverty-stricken countries subsidies deployed mainly by four in West Africa became the trading power blocks has fatally embodiment of international trade undermined the C-4’s ability to and economic injustice. With an trade their way out of poverty. Nine average GDP per capita of $637, years since the Doha Development and among the least developed Round was launched, $47bn has countries on earth, Benin, Burkina been doled out by the United Faso, Chad and Mali (known as the States, the European Union, China Cotton-4 or C-4) rely on cotton and India to its cotton growers. more than any other commodity for Over 51% of that $47bn has gone their export revenues. These directly to US farmers. Figures countries produce cotton more from the United States Department cheaply than anywhere else – a of Agriculture (USDA) reveal one competitive advantage that farm in Arkansas has received logically should place the C-4 in a more than $24m in subsidies over prime position to benefit from the the past 14 years. It is American growers, the world’s biggest cotton exporters, and Europeans to a ‘Our demand is simple: apply free trade rules lesser extent, who enjoy the not only to those products that are of interest benefits of ‘white gold’, so creating to the rich and powerful, but also to those a global price dampening effect. products where poor countries have a proven Even today, despite a recent cotton price spike, cotton has lost more comparative advantage.’ than half of its value compared to Amadou Toumani Touré, President of the 1975 once the price is adjusted for Republic of Mali inflation. 6 Cotton on to Fairtrade For the Cotton-4, it is a situation that spells economic ruination. With no subsidies to bail them out, Cotton-4 farmers struggle against extraordinary odds to compete. And a lack of revenue means C-4 governments cannot afford to build roads, ports and other infrastructure to catalyse a garment industry that would employ millions of people and create greater value in a desperately underdeveloped sector. In 2003 the C-4 became a cause célèbre among campaigners sparking interest in some sections of the West’s media. The C-4 was seen as a litmus test for whether the Doha Round was truly pro- poor. To a degree, pressure paid off. Five years ago, the WTO attempted to thrash out a cotton trade framework that would see the phase-out and elimination of US and EU trade distorting cotton subsidies. But as we now enter the 10th year since the Doha Round was launched, pledges made have not been implemented. After initial attention, the C-4’s story has faded from view. So it is time to remind ourselves what is at stake. While the Doha Round has floundered, the last decade has seen the rapid The West African Cotton-4 case reveals how growth of the global Fair Trade movement, bringing together the global trade system works against the producers and consumers in a interests of the world’s poorest farmers. Cotton citizens’ movement for change. is cheaper to produce from West Africa than Fair Trade seeks to develop trading anywhere else. But subsidies from rich power partnerships based on dialogue, blocks stop West African farmers getting a fair transparency and respect which promote greater equity in price. It is a situation that needs to change and international trade. The success of the time for change is now.’ Fairtrade certification in Ireland and Michael Nkonu, Director of Fairtrade Africa beyond, shows that there is an appetite for a trading system based on such principles. Cotton on to Fairtrade 7 WEST AFRICA STITCHED UP How cotton was introduced into and France settled on the West Africa savannahs of French Equatorial Africa lying between what is now By the 18th century, the Industrial Cameroon, Chad and the Central Revolution in Europe was in full African Republic. This constituted swing and a newly mechanised the first major African cotton textile industry was supplied with basin*. The independence of cotton shipped from America and African nations during the 1960s India. By 1834, America, relying on saw the cotton industry in West African slaves to work the fields, Africa expand. Over the past 50 became the world’s largest cotton years, areas assigned to cotton exporter. A status it has never production have almost quadrupled relinquished. In the 1850s, cotton from 800,000 to 3 million hectares prices rose as a result of major (ha).

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