The New World Fair Trade System. The fair trade movement is an organized gathering of developing countries, organizations

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1 Puentespina 1 Sheryl Puentespina November 15, 2010 Humanities: American Literature Pat Holder/Paul Lopez The New World Fair Trade System The fair trade movement is an organized gathering of developing countries, organizations and companies, that improve trading conditions and promote sustainability for workers. The standards of the Fair Trade System are a partnership developed, produced and inspected by the Fairtrade Labeling Organization International, World Fair Trade Organization, European Fair Trade Association and Network of European Worldshops. The purpose behind the world fair trade system is to improve financial stability of producers in countries with high poverty levels. The fair trade process ensures that companies selling fair trade products are compensated to support worker s working conditions and are environmentally conscious companies. These standards were developed based on partnership between importers and exporters of the products traded. The products that are commonly traded in this system include handicrafts, agricultural products, apparels and spices. The Fair Trade System has helped third world countries export their agricultural products, improve the trading conditions of producers and workers, assist in the funding of infrastructure and provide technical assistance to government gain notoriety in the international market. The first fair trade system began in Europe in the 1940s by religious groups and nongovernmental organizations (NGO) in assisting third world countries to sell their handicrafts in fairs and church grounds. There was no definite date found on when fair trade system started in the United States. Various religious groups in the U.S. were observed as well as the consumers. They started offering to purchase third world products at a higher price rate in the late 1940s. This was supported by the public in the 1940s to help support their cause. It was in full

2 Puentespina 2 development in Europe by the 1960s by radical students who were against the neo-imperialism system of developed countries. It became internationally recognized when in 1968 the United Nations Conference on Trade and Development (UNCTD) developed the slogan Trade not Aid. This provided a formal platform for developing countries to receive trade support and agreement. In the United States there is only one fair trade certification group, Fair Trade USA. They started certifying in 1998, with Mr. Paul Rice as the President and CEO. One of the goals of Fair trade is to make the working and labor conditions better for workers. Before this movement, certain factories would not make their working environment safe to work in and the workers were not treated fairly. Middle distributors often abused the system, shortchanging farmers out of a decent livelihood while keeping profits for themselves. The defrauded farmers had little to no recourse but to accept the low prices (Cullars). Once this movement began, the Fair-trade Labeling Organization has been working to help raise the economic and working condition standards for laborers, producers and the countries that are involved. They have been working to promote the standards for companies to provide fair trade practices. The standards being supported by the organizations include no child or forced labor, fair prices, fair labor conditions, direct trade from producers, community development and environmental sustainability. In a book published in 2007 called 50 Reasons to Buy Fair Trade the authors stated, Today food is still being exported from countries where there is gross hunger and people are dying as a result (7). A direct purchase from producers to the companies in the U.S. is developed to provide the best possible price of the products they produce. This standard has helped the producers to prevent...income insecurity and poverty to economic self-sufficiency and ownership. (WTO).

3 Puentespina 3 Another situation where the standards help a group of people that are a part of fair trade would be hired labor. Fair trade standards demands from their sources to comply with all labor laws, regulations and procedures. Companies working with hired labor can be certified if they comply with the requirements of the standards to pay decent wages, guarantee the right to join a trade union, ensure health and safety standards, and provide adequate housing and other social provision where relevant (FLO). They work to help the people to be treated equally. This ensures that the bosses do not abuse the labor force, while giving them their rights as people under a work force. The standard also prevents any forced or child labor. Millions of children worldwide are exploited, trafficked and enslaved by adults for money, and some are injured or die as a result. It s hard to know whether children have been exploited in producing your food, drink and other purchases unless you buy fair trade (Litvinoff and Madeley 101). This process is prevented by the requirement set by free trade programs that there is a committee created for the laborers to convey concerns, issues and safety matters to inform the producers and the committee that review the labeling process. Though child labor in the chocolate industry is a problem...no one person or system can provide a 100% guarantee that chocolate is free of child labor (FLO International). In the past year, a small number of suspected cases of the worst forms of child labor were found during Fairtrade audits. We reported these to the relevant child protection authorities, and then followed up to ensure that they are cared for. FLO s first and utmost concern is the safety and well-being of individual children (FLO International). This is what the organization fights to prevent. As a group they change the trading industry to make it better for the people and children around them, including the families of the children being forced to work.

4 Puentespina 4 The objectives and standards for the producers are to make certain that they receive enough funds to cover their costs of production, provide the Fair Trade Premium which can be invested in enhancing the social, economic and environmental development, pre-financing requirement, and to facilitate long-term trading partnerships which can allow larger producer control. An example of the benefits of the Fair Trade Premium is that it will improve education facilities and the condition of local schools, as well as providing materials and equipment. It will also support local families by funding items for their houses such as heaters and by providing warm clothes for winter (Fairtrade Foundation). It helps in making the Fair Trade system equal with the exporters, producers and company owners. Even if they are small-scale producers they will receive the assistance they need so they can meet the terms of the Fair Trade standards. The United States supports fair trade; and certain companies have joined in the fair trade sellers. An example would be: Ben & Jerry s in February announced they will be going 100% Fairtrade in the UK and throughout Europe by the end of 2011 and globally by end which means that every ingredient they use, from sugar to nuts to cocoa, that can be Fairtrade certified, will be.the Fairtrade flavors Chocolate Macadamia, Chunky Monkey, Vanilla and Vanilla Toffee Crunch were soon to be joined by the company s top selling flavors Baked Alaska, Caramel Chew Chew, Chocolate Fudge Brownie, and Phish Food, together with new flavors Fairly Nuts and Phish Food Frozen Yogurt (Ben and Jerry s) Ben and Jerry s is just one of many other companies willing to become providers of fair trade products. To quote Mr. Jerry Greenfield of Ben and Jerry, Fairtrade is about making sure people get their fair share of the pie. The whole concept of fair-trade goes to the heart of our values and the sense of right and wrong. Nobody wants to buy something that was made by exploiting somebody else. They had started using fair trade ingredients since They will continue to invest in this program and planned that in 2011 all their ingredients in making their ice creams will be fair trade certified.

5 Puentespina 5 In conclusion, have the world fair trade program achieve the working and labor conditions that fair trade organizations are working to improve? The answer to this question is yes. They have improved the working environment of the labor force of third world countries embracing the beliefs and practices of fair trade. They have developed safe, non-discriminatory labor practices, training opportunities, equal rights, and provide the chance for independent producers. The abuse or use of child labor is non-existing in the trading system. Companies that are purchasing the products and the producers have developed a great rapport that everyone in the system has benefited from the program. Implementing the standards takes time but with every new standard set, the companies and producers work to fulfill those guidelines, helping improve the production as well as the products being made. Fair Trade works in improving the system and the trade process for everyone.

6 Puentespina 6 Works Cited BBC News. "BBC News - Panorama - Tracing the Bitter Truth of Chocolate and Child Labour." BBC News - Home. 24 Mar Web. 08 Oct < Cullars, Sharon. "How Selling Goods under the Fair Trade Label Has Improved the Lives of People Who Produce Goods, Such as Coffee, Tea, Chocolate, Rice, Flowers and More - by Sharon Cullars - Helium." Helium - Where Knowledge Rules. Helium, Web. 01 Oct < El, Fisgón. How to Succeed at Globalization: a Primer for Roadside Vendors. New York: Metropolitan /Henry Holt and, Print. Fairtrade Foundation. "The Fairtrade Foundation Fairtrade - Fairtrade Standards." The Fairtrade Foundation Fairtrade Web. 08 Oct < mark/fairtrade_standards.aspx>. Fairtrade Labelling Organization International. "Standards / Aims of Fairtrade Standards." Fairtrade Labelling Organizations International (FLO). Fairtrade Labelling Organizations International, Web. 16 Sept < FLO International. "News / Latest News / Single View." Fairtrade Labelling Organizations International (FLO). 25 Mar Web. 08 Oct < 4ba4>. Global Exchange. "Our Fair Trade Campaigns." Global Exchange - Building People-to-People Ties. Global Exchange, 7 Jan Web. 16 Sept < Litvinoff, Miles, and John Madeley. 50 Reasons to Buy Fair Trade. London i.e.: Pluto, Print. Nicholls, Alex, and Charlotte Opal. Fair Trade: Market-driven Ethical Consumption. London: SAGE, EBook Reader. Stiglitz, Joseph E., and Andrew Charlton. Fair Trade for All: How Trade Can Promote Development. Oxford: Oxford UP, Print.

7 Puentespina 7 "The Fairtrade Foundation Fairtrade - Ben & Jerry s Nuts about Fairtrade Sundae on the Common." The Fairtrade Foundation Fairtrade. Ed. Faith Mall. Fairtrade Foundation, 23 July Web. 08 Oct < jerrys_nuts_about_fairtrade_sundae_on_the_common.aspx> "The Fairtrade Foundation Fairtrade - Fairtrade Pulses Launch." The Fairtrade Foundation Fairtrade. Ed. Elieen Maybin, Martine Julseth, Faith Mall, and Neil Martin. Fairtrade Foundation, 28 May Web. 08 Oct < rade_pulses_launch.aspx>. TransFair USA. "TransFair USA Fair Trade Overview." TransFair USA Home. Fair Trade Certified. Web. 16 Sept < WFTO. "WFTO - 10 Standards of Fair Trade." WFTO - Home. World Fair Trade Organization, 18 Nov Web. 16 Sept < Young, Mitchell. Free Trade. Detroit: Greenhaven, Print.