GUIDE TO FAIR TRADE LABELS A STUDY COMPARING THE VARIOUS ETHICAL LABELS Edition 2011 Fair Trade Label Guide 2011 Page 1 The Authors: Maryne Dupuis Maurin, Virginie Fayolle, Suzanne Guillemot, Eugénie Malandin, Julie Stoll Translated by Alistair Leadbetter on behalf of the European Fair Trade Association [EFTA] who paid for the translation. Any comments regarding the translation can be emailed to [email protected] It should be noted that this translation has not been approved by the PFCE and should not be widely circulated or distributed ©PFCE , Plate-Forme pour le Commerce Equitable, Mars 2011. Tous droits réservés Fair Trade Label Guide 2011 Page 2 Thank You! PFCE would like to thank all those people that have contributed to the completion of this labels guide, especially to those who reviewed the documentation for the various schemes: • Linda Besigiroha, for 4C • Olivier Cabrera, for Fairtrade Max Havelaar • Albertine de Lange, for UTZ CERTIFIED • Gilles Degroote, for Rainforest Alliance • Gérald Godreuil and Joris Jansen , for WFTO • Anne Hessenland, for Naturland • Wolfgang Kathe, for Fair for Life • Markus Kunz and Christa Suter and Pander Tschanennen , for bioRé® • Laurent Lefebvre, for ECOCERT Equitable • Bryony Morgan and Heiko Schindler, for Fair Wild • Guillaume Picchiottino and Claudie Ravel, for Forest Garden Products • Marie Requin, for Main dans la Main • Paul Zuiderbeek, for UTZ CERTIFIED Finally, this guide was made possible through the support of: • Ministère des Affaires Etrangères et Européennes • Agence Française de Développemen t • Ministère de l’Ecologie, du Développement Durable, d u Transport et du Logement Fair Trade Label Guide 2011 Page 3 Table of Contents Preface .................................................................................................................................................... 5 Introduction ............................................................................................................................................ 6 Methodology ........................................................................................................................................... 8 Summary of Label Features .................................................................................................................. 11 Ecocert Equitable .................................................................................................................................. 12 Fair for Life ............................................................................................................................................ 21 FairTrade Max Havelaar ........................................................................................................................ 27 FairWild ................................................................................................................................................. 37 Forest Garden Products ........................................................................................................................ 43 Main dans la Main ................................................................................................................................. 50 Naturland Fair ....................................................................................................................................... 56 World Fair Trade Organisation .............................................................................................................. 63 Common Code for Coffee Community [4C] .......................................................................................... 71 bioRé® ................................................................................................................................................... 76 Rainforest Alliance ................................................................................................................................ 81 UTZ Certified ......................................................................................................................................... 86 Conclusion ............................................................................................................................................. 90 GLOSSARY.............................................................................................................................................. 92 Fair Trade Label Guide 2011 Page 4 Preface The Platform for Fair Trade (PFCE) is the leading French collective of organizations working to promote fair trade. In place of dialogue between actors and their institutional representatives, the PFCE has worked with the development sector to promote North / South relations that are fairer and more balanced. In this context, the PFCE has gained several years expertise in the analysis of fair trade certification systems. The development of fair trade labels and business ethics reflects the first steps of many companies towards best practice and the desire of consumers to make sense of their purchases by opting for more responsible consumption practices. However, the proliferation of ethical or fair labels and brands does not always make it easy to understand the different approaches. The creation of the National Fair Trade Commission (CNCE) in 2010 reflects the desire of the French authorities to regulate the fair trade sector in order to defend the credibility of the most demanding systems. However, to date, any type of approach can still claim be fair trade, with very different levels of commitment and guarantees to consumers. Thus, this guide analyses the content of the labels that overtly claim to be fair trade, and also compares these with other approaches to ethical trade that are more or less similar and sometimes confused with fair trade. This work aims to answer questions from consumers and their representative associations, from government agencies charged with promoting systems of responsible production and consumption and from companies wishing to engage with these approaches to fairness. More generally, it is intended to inform all civil society stakeholders that have worked with the development sector for many years. Fair Trade Label Guide 2011 Page 5 Introduction Definitions of Fair Trade Fair trade is a comprehensive approach, combining commitments toward economic, social, environmental development and the capacity building of producers as well as the related dimensions of education and advocacy* 1 for the implementation of trade based development. According to its most widely accepted definition, fair trade is: "Fair trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South. Fair trade organisations, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade" [FINE*] In France, the agreement AFNor* X50-340, published in January 2006, also serves as a reference. It aims to "structure existing practices by providing assurances to consumers." The agreement was signed by 51 organisations but has no normative value and is only a moral obligation to its signatories. It describes the three pillars of fair trade: 1. The commercial dimension, with assistance in strengthening financial, technical and operational organisations of producers in the South; 2. The educational dimension, through information and the awareness-raising of the citizens of Northern and Southern partners; 3. The political dimension, through a commitment to greater justice in international trade rules. 1 The terms marked with an asterisk are defined in the glossary Fair Trade Label Guide 2011 Page 6 Legal Obligations Article 60 of the Act of August 2, 2005 on SMEs is the first piece of legislation that defines fair trade. It also announced the creation of a framework for recognizing fair trade with the creation of the National Trade Fair Commission (Commission Nationale du Commerce Equitable or CNCE): I. Fair trade is part of the national strategy for sustainable development. II. Within the activities of trade, crafts and services, fair trade organises the exchange of goods and services between developed countries and disadvantaged producers in developing countries. This trade aims to establish lasting relationships in order to ensure the economic and social progress of these producers. III. The people or organisations that ensure compliance with the conditions defined above are recognised by a commission whose composition, powers and criteria for recognition of the aforementioned people or organisations are defined by decree by the Council of State. Decree No. 2007-986 of 15 May 2007 defines the methods for the establishment of the National Fair Trade Commission (CNCE). It is "responsible for granting recognition to people who ensure compliance by organisations claiming their participation in trade in goods and services within the scope of fair trade, the conditions mentioned in Article 60 of the aforementioned law." The CNCE was officially established on April 22, 2010 by the Secretary of State for Trade, Crafts, SMEs, Tourism and Consumer Affairs and the Secretary of State for Ecology. To be recognized by the CNCE, applicants must meet the requirements of a standard* whose writing