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Fair trade

Fair trade. Building equitable trade partnerships to create social and economic justice. The Growing Divide. 1. If our world were a village of 1,000 people, 200 of us would consume 86% of all the goods and services, leaving 800 people to scramble for the rest.

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Fair trade

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  1. Fair trade Building equitable trade partnerships to create social and economic justice.

  2. The Growing Divide 1

  3. If our world were a village of 1,000 people, 200 of us would consume 86% of all the goods and services, leaving 800 people to scramble for the rest.

  4. To date global trade policies tend to reflect the interests and investments of the already developed world and leave those living in poverty out of the decision making. Over 3 billion people (½ of the world’s population) live on less than $2 a day

  5. Pacts like NAFTA encourage multi-national corporations to shop the world for the lowest wage in which to produce their products with disregard to human rights or the environment. • Leaders in developing countries, pressured to bolster their economy and shrink their debt, have turned a blind eye to sweatshops and child labor.

  6. Rarely do shoppers receive the information on the real costs of the inexpensive items that they purchase: • Destruction of natural resources • Degradation of workers’ health and dignity • Deepening oppression of entire cultures Adult workers in a factory earn $2.15 a day despite facing daily expenses of $6.12

  7. What is Fair Trade? 2

  8. Fair Trade creates opportunities for farmers and artisans that have been left vulnerable in conventional free trade, where they may work under sweatshop-like conditions for below subsistence wages.

  9. The Guiding Principles • Pays a fair wage in the local context. • Practices transparent and accountable business procedures. • Engages in environmentally sustainable practices. • Emphasizes gender equality. • Builds long-term relationships. • Offers financial and technical assistance to producers whenever possible. • Provides healthy and safe work conditions.

  10. Fair Trade buyers often pre-finance producers, paying for a portion of the order in advance which gives producers the capital with which to purchase supplies or invest in their business. Producers usually lack access to capital and may borrow at a high interest rate in order to begin production. In conventional trade, they are only paid after the delivery so a significant portion of their income goes to repaying debts.

  11. How Fair Trade is measured • With Fair Trade Certified™ commodities, producers are guaranteed a “floor price” for their crop that is designed to cover the costs of production and remains constant even as the market price drops. • For uncertified products like crafts, a Fair Trade price is considered a living wage for the producer’s work in a local context in addition the previously mentioned principles.

  12. Why Fair Trade? 3

  13. The Big Picture. • Trade is the most powerful tool to reduce poverty and ease global economic inequities. Oxfam estimates that if Africa were to increase its share of world trade by just 1%, the income generated would equal 5 times the aid and debt relief the region currently receives.

  14. Fair Trade is a more dignified, sustainable approach to international development than aid. • It allows villagers to remain in the countryside to earn a living, rather than migrate to a crowded, disease and violence ridden urban area.

  15. It gives individuals the opportunity to empower people who are otherwise overlooked. • It’s a means of making your purchasing power a tool for real social and economic change in the world. • It’s a symbol of solidarity.

  16. Fair Trade is Growing! 4

  17. A little history… • North Americans began buying crafts from impoverished Europeans after World War II. • By the late 1980’s, Fair Trade products began making it into mainstream marketplace.

  18. Our commitment is making a difference! • The International Fair Trade Association (IFAT) reports that worldwide, Fair Trade products generate $1.2 billion – more than twice the amount 4 years ago. • More than 1 million Americans buy Fair Trade annually.

  19. Fair Trade Distribution Total goods and services in North America: 2003 * *As reported by FTF and IFAT members

  20. What We Can Do 5

  21. Use your purchasing power • Place your money where your values are and become a conscious consumer. • Avoid the worst known environmental and human rights abusers. • Shop Fair Trade and green businesses. • Resources to shop responsibly: • www.fairtradecertifed.org • www.fairtradefederation.org • www.greenpages.org • www.responsibleshopper.org

  22. Raise public awareness of Fair Trade • Learn to identify Fair Trade and purchase it whenever possible. • Talk to your friends, family, and community about Fair Trade. • Write an editorial for a magazine, local paper or newsletter. • Ask for Fair Trade at grocery stores, coffee shops, and other places that you frequent.

  23. Get Involved in Fair Trade! • Nearly ¾ of the 5,000+ people working in Fair Trade in North America are volunteers. • Your commitment to Fair Trade is important. • It’s easy to get involved…

  24. Take Action! There are many ways to get involved in Fair Trade in your own life as well as helping bring more Fair Trade into your community. We’ve compiled some organizations that help you do so… • Adopt-a-Supermarket Campaign www.checkoutfairtrade.com Helps you bring more Fair Trade products to more supermarkets across the country. Download a free Fair Trade toolkit and more by visiting their website.

  25. Fair Trade Resource Network – www.ftrn.org This organization helps you learn about and link up with Fair Trade across the country and world. Visit FTRN for more recommended reading, news, events, and more. • Fair Trade Towns USA – www.fairtradetownsusa.org Your hometown can pave the way in the fight for global economic justice by becoming a Fair Trade town! Fair Trade Towns USA provides you with the tools and resources to do so.

  26. Fair Trade Alliance – www.coopamerica.org Across the country, faith groups, individuals, businesses and more make a commitment to Fair Trade by joining the Alliance. Receive Fair Trade resources, e-mail updates, and discounts at Fair Trade businesses. • Host a Partnership Sale – www.partnersforjusttrade.org Bring Fair Trade to your community or faith group by selling Fair Trade products at special events during the holidays or year round.

  27. United Students for Fair Trade – www.usft.org Meet youth working in solidarity with cooperatives to promote Fair Trade principles, products, and policies. • World Fair Trade Day – www.ftrn.org Celebrate Fair Trade with your church, community, and producers across the world on the 2nd Saturday of each May. The Fair Trade Resource Network will help you plan your own event or find one that’s already planned in your area.

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