What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration

What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration

CONTENTS INTRODUCTION As the world is revolving around globalization, everyone's heard the term Fair Trade The words conjure images of coffee, chocolate and happy farmers with fresh produce advertised on a product As a country with a thriving agriculture, Vietnam needs to pay special attention to Fair Trade certification, especially when exporting goods to countries with difficult markets such as the EU, the US, Canada, etc So, our group explored Fair Trade with the topic “What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration” DEVELOPMENT I WHAT IS FAIR TRADE? Definition: Fair trade, defined simply, is when producers in developing countries are paid a fair price for their work, by companies in developed countries It's when the price we pay for products gives enough to producers for them to afford life's essentials - like food, education and healthcare Fair trade was created as an alternative way of doing trade It is based on partnership, which means that the interests of farmers and workers are just as important as other commercial considerations It also represents a solution to poverty and a model for development In short, fair trade is a way of buying and selling products that makes certain that the people who produce the goods receive a fair price Fair trade is understood as a foundation to promote equality in international trade With the aim to build and develop a global trade system based on fair principles of production and trade, fair trade contributes to sustainable development by proposing better and healthier trade conditions, while guaranteeing rights for workers For example, most developed countries like the United States grow sugar that is insufficient for consumption However, the dilapidating international market prices, poor working conditions, and environmental deprivation pose severe challenges to farmers in developing countries Nonetheless, fair trade sugar ensures that cane farmers from developing countries get reasonable prices for their commodity Also, fair trade in sugar establishes a trade connection between farmers and importers Moreover, the money realized from the sale of sugar to importers enables farmers to improve their livelihoods besides improving their yield (BBC News, p.1) Research shows that farmers who sell their sugar cane to certified fair trade deals enjoy higher fair trade prices on top of receiving expertise on sugar cane production sustainable techniques Why we need fair trade? The truth of the matter is half of the world — nearly three billion people — live on less than two dollars a day, a number that does not even equate to a fair living wage We all deserve a living wage - one that enables workers and their dependants to meet their needs for nutritious food, clean water, shelter, clothes, access to education, access to health care and transport And in a globalised world where factories are churning out cheap fast fashion, children are exploited in the supply chain According to the International Labour Organisation (ILO) there are around 260 million children in employment around the world A truly staggering number and of them, the ILO estimates that 170 million are engaged in child labour, defined by the United Nations as “work for which the child is either too young – work done below the required minimum age – or work which, because of its detrimental nature or conditions, is altogether considered unacceptable for children and is prohibited” This needs to stop and we as consumers have a powerful voice in creating this change through knowledge, awareness and choice Fair trade is just as the words sound Farmers and workers around the world receive a fair price for the trade of their goods The concept of fair trade is global with many companies across different product categories working hard to ensure that farmers and workers are given the basic fundamental human rights by being treated honestly and fairly whilst also promoting sustainable environmental practices In addition to fair prices and payment, strict fair trade certification ensures absolutely NO child labour, good working conditions, no discrimination, no forced labor and no bonded labour There is a transparency from seed to shelf and accountability at every stage to ensure there is positive impact on humanity with no room for anything but the strictest social justice practices being upheld Benefits of Fair Trade: • • • • • • Fairtrade provides a fair price to farmers who grow the things we love, covering the cost of sustainable production and an additional sum of money to invest in community or business projects Fairtrade is good for the environment - Fairtrade supports sustainable farming practices which helps to minimize our environmental footprint Many Fairtrade farmers are also organic Fairtrade is safe - Fairtrade has standards that protect workers’ rights and promote good health and safety practices Fairtrade has a list of harmful chemicals that are banned from production Fairtrade supports communities By working through cooperative structures, Fairtrade farmers and workers are able to invest Fairtrade earnings in their communities, improving housing, healthcare, and schools Market access and fairer trade - Fairtrade is about doing trade differently It empowers farmers and workers to take control of their lives, businesses and communities through trade Fairtrade also enables businesses – and through them, consumers – to understand the whole supply chain because it is tracked from producer to buyer Fairtrade promotes gender equality - Fairtrade believes the role of women in agriculture needs more visibility, recognition and value, and that gender equity • • • • is important to social sustainability Currently, 350,000 women farmers and workers are part of Fairtrade, a quarter of the total Fairtrade is about quality and productivity - Supporting farmers to improve the amount of crop they produce and its quality are important for sustainable livelihoods It means farmers can earn more from what they produce to become more economically stable and more reliable suppliers Fairtrade means what you buy matters - By choosing Fairtrade products, you are not only accessing high quality products, you are making a difference in the lives of the people who grow the food you eat and the goods you use Fairtrade sets standards - Fairtrade Standards social, economic and environmental standards that are set for both companies and the farmers and workers who grow the food we love For farmers and workers the standards include protection of workers’ rights and the environment, for companies they include the payment of the Fairtrade Minimum Price and an additional Fairtrade Premium to invest in business or community projects of the community’s choice Fairtrade supports farmers to implement climate change adaptation measures The Fairtrade Standards promote sustainable development through best agricultural practices, which not only guide producers to adapt to climate change, but also encourage them to mitigate their impact Activities: The goal of the fair trade movement is to ensure that farmers and workers are adequately compensated for their products There are four stages of the fair trade certification process Formation of cooperatives: Typically, to qualify for fair trade certification, fair trade farm workers join democratically organized fair trade cooperatives • Third-party audit: These cooperatives—or the packer with whom they work— then pay for an audit to ensure that their processes and supply chains are up to fair trade standards Once approved, they’re eligible for fair trade certification • Certification: A fair trade certification organization reviews the audit and grants the packer use of a fair trade label, a process similar to organic certification • Pricing: After consulting producers and buyers, the fair trade labeling organization sets a minimum price that must be paid to producers for fair trade products The price covers the costs of producing their crop sustainably despite fluctuating market prices • History: Fair trade started in the United States, where Ten Thousand Villages (formerly Self Help Crafts) began buying needlework from Puerto Rico in 1946, and SERRV began to trade with poor communities in the South in the late 1940s The first formal “Fair Trade” shop which sold these and other items opened in 1958 in the USA The earliest traces of Fair Trade in Europe date from the late 1950s when Oxfam UK started to sell crafts made by Chinese refugees in Oxfam shops In 1964, it created the first Fair Trade Organisation Parallel initiatives were taking place in the Netherlands and in 1967 the importing organisation, Fair Trade Original, was established At the same time, Dutch organisations began to sell cane sugar with the message “by buying cane sugar you give people in poor countries a place in the sun of prosperity” These groups went on to sell handicrafts from the South, and in 1969 the first “Third World Shop” opened World Shops, or Fair Trade shops as they are called in other parts of the world, have played (and still play) a crucial role in the Fair Trade movement They constitute not only points of sales but are also very active in campaigning and awareness-raising During the 1960s and 1970s, Non-Governmental Organisations (NGOs) and socially motivated individuals in many countries in Asia, Africa and Latin America perceived the need for fair marketing organisations, which would provide advice, assistance and support to disadvantaged producers Many such Southern Fair Trade Organisations were established, and links were made with the new organisations in the North These relationships were based on partnership, dialogue, transparency and respect The goal was greater equity in international trade Parallel to this citizens’ movement, the developing countries were addressing international political fora such as the second UNCTAD conference (United Nations Conference on Trade and Development) in Delhi in 1968, to communicate the message “Trade not Aid.” This approach put the emphasis on the establishment of equitable trade relations with the South, instead of seeing the North appropriate all the benefits and only returning a small part of these benefits in the form of development aid The growth of Fair Trade (or alternative trade as it was called in the early days) from the late 60s onwards has been associated primarily with development trade It grew as a response to poverty and sometimes disaster in the South and focused on the marketing of craft products Its founders were often the large development and sometimes religious agencies in European countries These NGOs, working with their counterparts in countries in the South, assisted to establish Southern Fair Trade Organisations that organize producers and production, provide social services to producers, and export to the North Alongside the development trade there was also a branch of solidarity trade Organisations were set up to import goods from progressive countries in the South that were both politically and economically marginalised 6 Organizations promoting fair trade: Most of the fair trade import organizations are members of, or certified by one of several national or international federations These federations coordinate, promote, and facilitate the work of fair trade organizations The following are some of the largest: • • • • • • FLO International (Fairtrade International), created in 1997, is an association of three producer networks and twenty national labeling initiatives that develop fair trade standards, license buyers, label usage, and market the Fair trade Certification Mark in consuming countries The Fairtrade International labeling system is the largest and most widely recognized standard setting and certification body for labeled Fair trade Formerly named Fairtrade Labelling Organizations International, it changed its name to Fairtrade International in 2009, when its producer certification and standard setting activities were separated into two separate, but connected entities FLO-CERT, the for-profit side, handles producer certification, inspecting and certifying producer organizations in more than 50 countries in Africa, Asia, and Latin America Fairtrade International, the nonprofit arm, oversees standards development and licensing organization activity Only products from certain developing countries are eligible for certification, and for some products such as coffee and cocoa, certification is restricted to cooperatives Cooperatives and large estates with hired labor may be certified for bananas, tea and other crops Fair Trade USA is an independent, nonprofit organization that sets standards, certifies, and labels products that promote sustainable livelihoods for farmers and workers and protect the environment Founded in 1998, Fair Trade USA currently partners with over 1,000 brands, as well as 1.3 million farmers and workers across the globe Global Goods Partners (GGP) is a fair-trade nonprofit organization founded in 2005 that provides support and US market access to women-led cooperatives in the developing world World Fair Trade Organization (formerly the International Fair Trade Association) is a global association created in 1989 of fair trade producer cooperatives and associations, export marketing companies, importers, retailers, national and regional fair trade networks, and fair trade support organizations In 2004 WFTO launched the FTO Mark which identifies registered fair trade organizations (as opposed to the FLO system, which labels products) The Network of European Worldshops (NEWS!), created in 1994, is the umbrella network of 15 national worldshop associations in 13 different countries all over Europe The European Fair Trade Association (EFTA), created in 1990, is a network of European alternative trading organizations that import products from some 400 economically disadvantaged producer groups in Africa, Asia, and Latin America EFTA's goal is to promote fair trade and to make fair trade importing more efficient and effective The organization also publishes yearly various publications on the evolution of the fair trade market EFTA currently has eleven members in nine different countries In 1998, the first four federations listed above joined together as FINE, an informal association whose goal is to harmonize fair trade standards and guidelines, increase the quality and efficiency of fair trade monitoring systems, and advocate fair trade politically Additional certifiers include IMO (Fair for Life, Social and Fair Trade labels), Eco-Social and Fair Trade USA • The Fair Trade Federation (FTF), created in 1994, is an association of Canadian and American fair trade wholesalers, importers, and retailers The organization links its members to fair trade producer groups while acting as a clearinghouse for information on fair trade and providing resources and networking opportunities to its members Members self-certify adherence to defined fair trade principles for 100% of their purchasing/business Those who sell products certified by Fairtrade International must be 100% certified by FI to join FTF • In Vietnam, farms developed under Fairtrade standards are often financed by foreign funds, typically Irish Aid, Oxfam, Center for Development and Integration (CDI) and Green Fair Trade Vietnam Distributions and shops: There are over 1.7 million farmers and workers in 1,707 producer organisations that are part of Fairtrade Fair Trade sales have risen considerably during the last years, Fair Trade is expanding to address the mass market and many new Fair Trade products have been launched in recent years So, have you ever asked yourself where are Fair Trade products bought? According to the survey, the most popular purchasing location for Fair Trade products is the supermarket 68% of the respondents indicated to buy their Fair Trade products in the supermarket, and the second most popular location to buy Fair Trade products is the Café or Restaurant with 26% 22% of the respondents claimed to buy Fair Trade products also in a Bio-Supermarket, whereas only 17% go to a Worldshop and 12% purchase Fair Trade products on the Internet The most popular location for buying Fair Trade products in Germany in 2007 was the supermarket, with 42.6% of the consumers purchasing their Fair Trade products there (fair feels good, 2007) The same development can be seen in international sales figures, which show that the biggest increase of Fair Trade sales has been reached with supermarket sales Almost as important as the supermarkets are the organic food shops (41%) This shows that the combination of organic and Fair Trade is becoming more and more popular among consumers Distribution relied on mail order and a limited number of world shops (see, as an example www.giftswithhumanity.com) The niche market era saw an increase in participants In addition to ATOs, fair trade companies started to emerge The product range and brands extended to a wider choice of commodity products, such as tea, chocolate, cocoa, sugar, nuts and fruits Furthermore, quality levels and consistency improved This made it possible for fair trade to reach a larger customer base and appeal to a wider range of consumers in different segments In short, Fair trade products are now available in supermarkets, corner shops, world shops, online, and through mail order Fair trade certificate: Fairtrade serves as an alternative to conventional trade and is based on the partnership between producers and consumers with the goal of improving lives and reducing poverty through ethical trade practices a) Definition: A fair trade certification is a product certification within the market-based movement fair trade The most widely used fair trade certification is FLO International's, the International Fairtrade Certification Mark, used in Europe, Africa, Asia, Australia and New Zealand Fair Trade Certified Mark is the North American equivalent of the International Fairtrade Certification Mark As of January 2011, there were over 1000 companies certified to the FLO International's certification and a further 1000 or so certified to other ethical and fairtrade certification schemes around the world The Fairtrade system monitors the buying and the selling of the product until it is consumer packaged and labelled Certificates are only issued after a physical inspection has confirmed that all relevant Fairtrade Standards have been complied with So, the Fairtrade certification system aims to assure consumers that their purchase meets special social, economic and environmental standards b) How it works: Fair trade is a strategy for poverty alleviation and sustainable development, aiming at creating greater equity in the international trading system Through trading partnerships with marginalised farmers and craftspeople in developing countries, social and economic opportunities are created for these producers in a way that more customers are accessible to their products and a better deal is issued In return, the producers have to comply with all the standards laid down by Fairtrade International In reality, packers in developed countries pay a fee to the Fairtrade organisation for the right to use the Fairtrade certification logo Importers of Fairtrade certified products are required to pay exporters a price higher than the market price of non-Fairtrade certified products, so as to cover the additional costs used by Fairtrade certified firms in marketing and inspection Any surplus after paying these costs must be used for local social, environmental and economic projects Fair trade standards: Fairtrade Standards are designed to aid the sustainable development of some smaller producers and agricultural workers around the world In order to become certified Fairtrade producers, the cooperatives and their fellow farmers have to strictly comply with the standards laid down by Fairtrade International FLO International's certification, the for-profit side, is responsible for inspecting and certifying producer organizations in more than 70 countries in Europe, Asia, Africa and Latin America The general standards set for different stakeholders are listed as follows: Small Producer Organizations The majority of the members of the organization must be small-scale producers who not highly depend on hired workers, but run their farm mainly by their own effort • Any profits earned must be equally distributed among the producers • Every member in the organisation should have the right to vote in the decisionmaking process • Hired Labour Workers possess the right to join an independent union to collectively bargain their working conditions • No forced or child labour • Working conditions have to be equitable for all workers Salaries must be at least equal or higher than the minimum wage in effect • Safety and health measures must be implemented properly so as to avoid unwanted injuries at work • Trade Standards Pay a price higher than the Fairtrade Minimum Price in order to cover the costs of sustainable production • Pay an additional amount of money that allows producers to invest in development (the Fairtrade Premium) • Sign contracts that assist long-term planning and sustainable production practices • => The Fairtrade Standards play a vital role promoting sustainable development around the world 10 10 Commodities: Fair trade commodities are goods that have been exchanged from where they were grown or made to where they are purchased, and have been certified by a fair trade certification organization, such as Fairtrade International or World Fair Trade Organization Sixty percent of the fair trade market revolves around food products such as coffee, tea, cocoa, honey and bananas Non-food commodities include crafts, textiles, and flowers a) Coffee: Coffee is the most well-established fair trade commodity The largest sources of fair trade coffee are Uganda and Tanzania, followed by Latin American countries such as Guatemala and Costa Rica Most Fair Trade coffee is Coffee arabica, a type of coffee known to be grown at high altitudes A lot of emphasis is put on the quality of the coffee when dealing in Fair Trade markets because Fair Trade markets are usually specialized markets that appeal to customers who are motivated by taste rather than price The fair trade movement fixated on coffee first because it is a highly traded commodity for most producing countries, and almost half the world's coffee is produced by smallholder farmers While initially sold at small scale, currently multinationals like Starbucks and Nestlé use fair trade coffee b) Cocoa Cocoa is farmed in the tropical regions of West Africa, Southeast Asia, and Latin America Many countries that export cocoa rely on cocoa as their single export crop In Africa in particular, governments tax cocoa as their main source of revenue Cocoa is a permanent crop, which means that it occupies land for long periods of time and does not need to be replanted after each harvest c) Textiles Fair trade textiles are primarily made from fair trade cotton By 2015, almost 75,000 cotton farmers in developing countries had obtained fair trade certification The minimum price that fair trade pays allows cotton farmers to sustain and improve their livelihoods Fair trade textiles are frequently grouped with fair trade crafts and goods made by artisans in contrast to cocoa, coffee, sugar, tea, and honey, which are agricultural commodities d) Seafood With increasing media scrutiny of the conditions of fishermen, particularly in Southeast Asia, the lack of transparency and traceability in the seafood industry prompted new efforts In 2014, Fair Trade USA created its Capture Fisheries Program that led to the first instance of Fair Trade fish being sold globally in 2015 The program "requires fishermen to source and trade according to standards that protect 11 fundamental human rights, prevent forced and child labor, establish safe working conditions, regulate work hours and benefits, and enable responsible resource management.” e) Luxury commodities There have been efforts to introduce fair trade practices to the luxury goods industry, particularly for gold and diamonds ● Diamonds and sourcing In parallel to efforts to commoditize diamonds, some industry players have launched campaigns to introduce benefits to mining centers in the developing world Rapaport Fair Trade was established with the goal "to provide ethical education for jewelry suppliers, buyers, first time or seasoned diamond buyers, social activists, students, and anyone interested in jewelry, trends, and ethical luxury.” ● Gold Fairtrade certified gold is used in manufacturing processes as well as for jewelry II PRINCIPLES OF FAIR TRADE Principle One: Creating Opportunities for Economically Disadvantaged Producers: Poverty reduction through trade forms a key part of the organization’s aims The organization supports marginalized small producers, whether these are independent family businesses, or grouped in associations or co-operatives It seeks to enable them to move from income insecurity and poverty to economic self-sufficiency and ownership The organization has a plan of action to carry this out Example: Importers following the Fair Trade model try to purchase from Fair Trade cooperatives as directly as possible, eliminating unnecessary middlemen and empowering farmers to develop the business capacity necessary to compete in the global marketplace Principle Two: Transparency and Accountability The organization is transparent in its management and commercial relations It is accountable to all its stakeholders and respects the sensitivity and confidentiality of commercial information supplied The organization finds appropriate, participatory ways to involve employees, members and producers in its decision-making processes It ensures that relevant information is provided to all its trading partners The communication channels are good and open at all levels of the supply chain Example: Center for Development and Integration (CDI) and Green Fair Trade Vietnam since 2011 has supported Coffee producer group set up a cooperative with the 12 goal cooperation and mutual assistance in real activities export, trade and create jobs to meet demand general demand of members, on the basis of autonomy and self accountability, equality and democracy in cooperative management Principle Three: Fair Trading Practices The organization trades with concern for the social, economic and environmental wellbeing of marginalized small producers and does not maximize profit at their expense It is responsible and professional in meeting its commitments in a timely manner Suppliers respect contracts and deliver products on time and to the desired quality and specifications The organization maintains long term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade It maintains effective communication with its trading partners Parties involved in a trading relationship seek to increase the volume of the trade between them and the value and diversity of their product offer as a means of growing Fair Trade for the producers in order to increase their incomes The organization works cooperatively with the other Fair Trade Organizations in the country and avoids unfair competition It avoids duplicating the designs of patterns of other organizations without permission Fair Trade recognizes, promotes and protects the cultural identity and traditional skills of small producers as reflected in their craft designs, food products and other related services Example: In Viet Nam From 2011 to 2016, there were more cooperatives coffee production Fair Trade is supported in establishment and works effectively Currently the cooperatives have established a network linking Fair Trade coffee cooperatives with the support of many international, and partners domestic, and businesses geared towards the item spending capacity building and sharing experiences work Ideally, the certification also secures long-term, stable relationships between producers and importers Principle Four: Payment of a Fair Price A fair payment is one that has been mutually negotiated and agreed by all through ongoing dialogue and participation, which provides fair pay to the producers and can also be sustained by the market, taking into account the principle of equal pay for equal work by women and men The aim is always the payment of a Local Living Wage Fair Payment is made up of Fair Prices, Fair Wages and Local Living Wages Fair Prices: A Fair Price is freely negotiated through dialogue between the buyer and the seller and is based on transparent price setting It includes a fair wage and a fair profit Fair prices represent an equitable share of the final price to each player in the 13 supply chain Fair Wages: A Fair Wage is an equitable, freely negotiated and mutually agreed wage, and presumes the payment of at least a Local Living Wage Local Living Wage: A Local Living Wage is remuneration received for a standard working week (no more than 48 hours) by a Worker in a particular place, sufficient to afford a decent standard of living for the Worker and her or his family Elements of a decent standard of living include food, water, housing, education, health care, transport, clothing, and other essential needs, including provision for unexpected events Example: In the sugar production industry of America fair trade sugar ensures that cane farmers from developing countries get reasonable prices for their commodity Also, fair trade in sugar establishes a trade connection between farmers and importers Moreover, the money realized from the sale of sugar to importers enables farmers to improve their livelihoods besides improving their yields Principle Five: Ensuring no Child Labour and Forced Labour The organization adheres to the UN Convention on the Rights of the Child, and national / local law on the employment of children The organization ensures that there is no forced labour in its workforce and / or members or homeworkers Organizations who buy Fair Trade products from producer groups either directly or through intermediaries ensure that no forced labour is used in production and the producer complies with the UN Convention on the Rights of the Child, and national / local law on the employment of children Any involvement of children in the production of Fair Trade products (including learning a traditional art or craft) is always disclosed and monitored and does not adversely affect the children’s wellbeing, security, educational requirements and need for play Example: Children below the age 15 are not to be employed by Fair Trade organization either directly or indirectly If a small producer organization is an a area with a high likelihood of child labour, they are encourage to include a mitigation and elimination plan in their Fair Trade Development Plan Principle Six: Commitment to Non Discrimination, Gender Equity and Women’s Economic Empowerment and Freedom of Association The organization does not discriminate in hiring, remuneration, access to training, promotion, termination or retirement based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, HIV/Aids status or age The organization has a clear policy and plan to promote gender equality that ensures that women as well as men have the ability to gain access to the resources that they need to be productive and also the ability to influence the wider policy, regulatory, and 14 institutional environment that shapes their livelihoods and lives Organizational constitutions and by-laws allow for and enable women to become active members of the organization in their own right (where it is a membership based organization), and to take up leadership positions in the governance structure regardless of women’s status in relation to ownership of assets such as land and property Where women are employed within the organization, even where it is an informal employment situation, they receive equal pay for equal work The organization recognizes women’s full employment rights and is committed to ensuring that women receive their full statutory employment benefits The organization takes into account the special health and safety needs of pregnant women and breast-feeding mothers The organization respects the right of all employees to form and join trade unions of their choice and to bargain collectively Where the right to join trade unions and bargain collectively are restricted by law and/or political environment, the organization will enable means of independent and free association and bargaining for employees The organization ensures that representatives of employees are not subject to discrimination in the workplace Example: + 300 women from Fair Trade certified Kapngetuny Cooperative launched their own women’s label coffee: Zawadi coffee, which is Swahili for “gift” Another example is the Women’s School of Leadership established by Fairtrade Africa and funded by Compass Group UK & Ireland and the Co-op Women from seven different Fairtrade cocoa co-operatives (representing almost 5,000 members) took part in practical training in skills like finance, negotiation and decision-making The school also trained men, helping them promote the value of gender equality in their communities + Currently, 14 cooperatives and cooperatives for coffee production in Kon Tum, Dak Lak, Dak Nong and Lam Dong with more than 700 smallholder farmers and Central Highlands ethnic minorities have joined the Fair Trade system with production capacity and Export up to 5,000 tons of Fair Trade coffee per year + FAGI Company is a Fair Trade Certified Supplier Established in 1996, FAGI Joint Stock Company with 1/3 of the employees are handicapped people specializing in handcraft production of souvenirs, gifts, stuffed animals for export to the US, EU and Japan markets There are eight conscientious people working at FAGI with a salary of about five million / month, with lunch support and the regime according to the Labor Code The company also shipped its products to ten families with people with disabilities to make at home The slogan of FAGI is always not focusing on profit, trying to create an environment for people with disabilities to confidently integrate into the community and surpass themselves Principle Seven: Ensuring Good Working Conditions 15 The organization provides a safe and healthy working environment for employees and / or members It complies, at a minimum, with national and local laws and ILO conventions on health and safety Working hours and conditions for employees and / or members (and any homeworkers) comply with conditions established by national and local laws and ILO conventions Fair Trade Organizations are aware of the health and safety conditions in the producer groups they buy from They seek, on an ongoing basis, to raise awareness of health and safety issues and improve health and safety practices in producer groups Example: + Together with partners, Fair Trade has advocated for structural changes that strengthen the rights of workers in the banana, floriculture and tea sectors For instance, in 2019, its concept for floor wages was incorporated in the Dutch sector covenant for responsible business conduct in floriculture Workers at Fair Trade certified companies in the US, Mexico, Peru and Ghana are provided with safe working conditions, healthcare, sick leave, rest, meals and safe accommodations Farms, packaging plants and housing are inspected and responsible for fire safety, sanitary working and living conditions, as well as using protective devices to prevent injury and exposure to pesticides + In Vietnam, Ha Linh Company - a company with Fair Trade certification - has entered the top 30 of Vietnamese favorite goods in 2016 This is one of 30 enterprises honored to be highly appreciated in the field of export products, and comply with social responsibility Ha Linh has done really well in its CSR: not hiring seasonal staffs, providing suitable working hours and conditions, complying with the minimum salary prescribed by the State, not using child labor, etc Principle Eight: Providing Capacity Building The organization seeks to increase positive developmental impacts for small, marginalized producers through Fair Trade The organization develops the skills and capabilities of its own employees or members Organizations working directly with small producers develop specific activities to help these producers improve their management skills, production capabilities and access to markets - local / regional / international / Fair Trade and mainstream as appropriate Organizations which buy Fair Trade products through Fair Trade intermediaries in the South assist these organizations to develop their capacity to support the marginalized producer groups that they work with 16 Example: + Vietnam VIRI is an accredited research institute by the International Fair Trade Organization (WFTO) for the criteria of working conditions, income regime for production groups These works have brought jobs and effective income for more than 200 production groups in rural areas with 50,000 beneficiaries Of these, over 80% are poor women in ethnic minority areas They are trained in skills and work arrangements according to their abilities and physical abilities + From direct export to import companies in foreign markets, the Fair Trade system ensures to create and transfer to farmer groups a welfare fund of about 27 billion VND with a benefit level of about 9,000,000 VND / tons of coffee beans for export Farmers decide to use this fund to improve coffee production capacity, coffee quality, and develop markets From 2011 to 2016, more Fair Trade coffee production cooperatives were supported to establish and operate effectively Currently, cooperatives have established a network linking Fair Trade coffee cooperatives with the support of many international and domestic partners, and businesses aiming to improve capacity and share experiences work There are also some Fair Trade organizations that focus on community development programs, building human capacities through skill training and specific programs to enhance the inclusion of ethnic minorities and retail Principle Nine: Promoting Fair Trade The organization raises awareness of the aim of Fair Trade and of the need for greater justice in world trade through Fair Trade It advocates for the objectives and activities of Fair Trade according to the scope of the organization The organization provides its customers with information about itself, the products it markets, and the producer organizations or members that make or harvest the products Honest advertising and marketing techniques are always used Example: + In 2015, CDI and Green Fair Trade Vietnam organized visits of consumers and youth from other countries to visit Fair Trade certified cooperatives + Vietnamese Fair Trade certified coffee and cocoa was introduced at the London - UK event in September 2016; pepper was introduced at SIAL Paris - France in October 2016; Tea was introduced at Biofach Duc Fair and handicrafts introduced in Germany in February 2017 and in BIG-BIH fair in Thailand in October 2016 These are all 17 major events, attracting a lot of visitors These products received great attention from customers + On November 16-19, 2016, the Fair Trade Promotion in Vietnam Project, sponsored by the European Union, participated in the Food Expo International Trade Fair in Ho Chi Minh City together with two cooperatives receiving project support, namely Eakiet Cooperative and Eakar Cooperative Some Fair Trade products had been promoted on Japanese supermarkets, shops and online magazines with correct description 10 Principle Ten: Respect for the Environment Organizations which produce Fair Trade products maximize the use of raw materials from sustainably managed sources in their ranges, buying locally when possible They use production technologies that seek to reduce energy consumption and where possible use renewable energy technologies that minimize greenhouse gas emissions They seek to minimize the impact of their waste stream on the environment Fair Trade agricultural commodity producers minimize their environmental impacts, by using organic or low pesticide use production methods wherever possible Buyers and importers of Fair Trade products give priority to buying products made from raw materials that originate from sustainably managed sources, and have the least overall impact on the environment All organizations use recycled or easily biodegradable materials for packing to the extent possible, and goods are dispatched by sea wherever possible Example: + Vietnam is known worldwide for exporting large volumes of coffee, and farmers often suffer the negative environmental impact of using chemical pesticides Eakiet, one of the first Fairtrade cooperatives in Vietnam, is based in a region enriched with natural resources and several national parks Through training, the co-operative has stopped using pesticides and herbicides If there is an outbreak of insects, they use high-pressure water to remove them They continuously weed and prune their trees during the rainy season when the risk of pests and disease increases + With the case of Cong Bang Thuan An Agricultural Cooperative in Thuan An Commune, Dak Mil District, Dak Nong Province, every year, the cooperative supports non-refundable microbiological fertilizers, for its members to renovate gardens and reduce inorganic fertilizers + Associaỗóo dos Costas is an association of small-scale coffee farmers located in the state of Minas Gerais in southeastern Brazil Thanks to Fair Trade, Associaỗóo dos 18 Costas has developed an Environmental Impact Management project, which is an investigative assessment of the sustainable use, storage and control of agrochemicals on their Brazilian farms The project resulted in the reduction of glyphosate use, incentives for the rational use of fertilizers and soil remediation, a complete overhaul of chemical storage, increased monitoring of crops, recycling campaigns for the return of empty containers of chemicals and the implementation of land conservation initiatives 19 CONCLUSION Fairtrade is one simple way to spark change – and it starts with our choices Choosing Fairtrade means standing with farmers for fairness and equality, and against some of the biggest challenges the world faces With Fairtrade you have the power to change the world every day With simple shopping choices you can get farmers a better deal And that means they can make their own decisions, control their future and lead the dignified life everyone deserves 20 REFERENCES: https://bhumi.com.au/blogs/earth-life-balance/the-importance-of-fair-trade-in- todays-world#:~:text=Fairtrade%20is%20about%20quality%20and,stable %20and%20more%20reliable%20suppliers https://www.fairtrade.org.uk/get-involved/donate/why-we-needfairtrade/#:~:text=Fairtrade%20enables%20consumers%20to%20demand,create %20the%20products%20we%20enjoy https://wfto.com/about-us/history-wfto/history-fair-trade https://en.wikipedia.org/wiki/Fair_trade#Organizations_promoting_fair_trade https://wfto.com/sites/default/files/WFTO%20-10%20Principles%20%20of %20Fair%20Trade%20%282017%29.pdf https://wfto-europe.org/the-10-principles-of-fair-trade-2/ http://cdivietnam.org/wp-content/uploads/2017/02/So-tay-TMCB_Final.pdf https://knacert.com.vn/blogs/tin-tuc/thuong-mai-cong-bang-dam-bao-suc-khoeva-an-toan-cho-cong-nhan-nong-trai-tai-my http://fairtrade.org.vn/cau-chuyen-thanh-cong-thuong-mai-cong-bang.html 21 REMARK No Name Class Task Trần Thị Thanh Hoa K54N3 Definition + Reasons + Benefits of Fair Trade Trần Thị Huyền K54N6 Activities + History + Organizations Nguyễn Thị Nhàn K54N2 Distributions & Shops + Certificate + Standard Nguyễn Thị Thanh Thủy K54N5 Commodities Đào Minh Yến K54N4 Principles of Fair Trade Lê Thu Diệp K54N7 Principles of Fair Trade 22 Remark ... topic ? ?What is Fair Trade? What are the Principles of Fair Trade? Give examples for illustration? ?? DEVELOPMENT I WHAT IS FAIR TRADE? Definition: Fair trade, defined simply, is when producers in... Activities: The goal of the fair trade movement is to ensure that farmers and workers are adequately compensated for their products There are four stages of the fair trade certification process Formation... increase the volume of the trade between them and the value and diversity of their product offer as a means of growing Fair Trade for the producers in order to increase their incomes The organization