MAKE TRADE FAIR OXFAM INTERNATIONAL What is Fair

MAKE TRADE FAIR OXFAM INTERNATIONAL

What is Fair Trade? n Fair Trade is a commercial "partnership that aims at a sustainable development for producers that are either excluded or disadvantaged. It attempts to do this by proposing better trading terms for producers, through education to consumers to increase awareness and by advocacy"

Who will be benefited? n Producers are guaranteed a fair price. Long-term, stable trading relationships, support the producer in developing responsible practice for their business along with sustainable income n Fair Trade Certification enables industries to meet growing consumer demand for sustainable products thus harnessing the power of the market to make a positive difference for the world’s most disadvantaged producers n Fair Trade encourages and rewards environmentally sustainable farming practices that protect farmers’ health and preserve valuable ecosystems for future generations

Implications of Fair Trade n n n Fair Trade “humanizes” the trade process – making the producerconsumer chain as short as possible so that consumers become aware of the cultural, identity and conditions in which producers live. Pays fair price that includes all input costs and reasonable surplus. Pays a fair wage in the local content n Provides healthy and safe working condition n Engage in environmentally sustainable practices. n Provides financial and technical assistance to producers wherever possible. n Transparency in supply chain.

About Oxfam International n n n Oxfam International was founded in 1995 “Oxfam” comes from the Oxford Committee for Famine Relief, founded in Britain during the second world war in 1942 International confederation of 13 independent nongovernment organizations n n n 3, 000 partners in more than 100 countries Dedicated to fighting poverty and related injustice around the world Advocacy offices in Washington DC, New York, Brussels and Geneva

About Campaign Proposition n International trade has the potential to eliminate extreme poverty but rigged rules & double standards of trade is widening the gap between rich & poor. Oxfam wants to make trade fair by calling for an end to unfair trade rules Campaign Objectives n n n n Market access Subsidies Patents Commodity prices Pro-poor national and regional trade policies WTO reform Companies respect the rights of workers

Campaign Tool Kit n n n Working together Working with the media Influencing the influential Petition Sheets Posters Letters/ Emails

World Fair Trade Day, which is celebrated on the second Saturday of May, is the world’s annual celebration of fair trade. This year’s theme for WFT Day was Kids Need Fair Trade. “Farmers need to negotiate better and strengthen their voices so that trade is fairer. How do you do that? You sit around the table and talk. The WTO is that platform. If you like what you are being offered you take it and if you don't, you reject it. " - Lucky Ali

Stan Thekaekara n n n n Founded the Bangalore Disaster Relief and Rehabilitation Centre in 1983. Came as Community Development Officer to Nilgiri in 1984. Founded ACCORD in 1986. Main Objective was to regain the tribal land. Sustainability of the production by the tribals? First trustee of Oxfam GB from a developing country. Founded Just Change in 2001. Motive of creating wealth for the people.

Just Change n n n n Partnered with many European retail stores. Partnered with many like minded social organizations. Working in many European countries. Benefit to the producer-consumer-investor. Providing opportunity for free trade between the producer and the consumer. A model of Cooperation rather than Competition. Poor’s reply to globalization.

Just Change : Shortcomings Not many takers of the concept. n No major role of the government other agencies. n Limited to certain pockets, commodities and customers. n Not the only player in Fair Trade. n Sustainability at stake. n

Fair Trade Campaign TRAIDCRAFT: Established in 1979 as a Christian response to poverty, it combines a trading company and a development charity. Its mission is to fight poverty through trade, practising and promoting approaches to trade that help poor people in developing countries transform their lives n Has been campaigning against Economic Partnership Agreement of EU n It does it by building lasting relationships with small-scale producers in developing countries supporting people to trade out of poverty working to bring about trade justice being open and transparent about our practices. n

Fair Trade Campaign n INTERNATIONAL RESOURCE FOR FAIRER TRADE n Established under Bombay Public Trust Act in the year 1995 with a mission to have an impact on poverty and unemployment by promoting and supporting fairer trade and ethical business n Objectives: n Making products with a ‘social value’ i. e a Fair Trade range of products available to consumers in mainstram markets on a regular basis. n Increasing awareness about various traditional skills n Ensuring traceability of benefits through-out the production supply chain n Creating increased sustainability for small enterprises through increased demand leading to increased employment opportunities and improvement in social and economic status.

Fair Trade Alliance Kerala (FTAK) A Case Study Support received from the Fair Trade Centre: € 26, 000 n Field of action: 6 districts in South-West India n Members: +2500 small farmers n Founded by INFACT (Information for Action) an NGO whose main focus is on spreading information and initiating participatory processes. n

n Objective is to boost the marketing of products from small growers’ organizations affiliated to Fair Trade Alliance Kerala n Gains achieved so far are now severely threatened due to the impact of the steep fall in the price of agricultural commodities n To sustain its quality of life, Kerala needs decent prices for its agricultural products, which correspond to the cost of production

INFACT-impact n n INFACT develops updated and user-friendly marketing information software. Takes part in two trade fairs in Europe to establish new contacts with companies involved in fair trade. On basis of shared experiences, INFACT develops an action plan for farmers and a list of existing and potential fair trade buyers. FTAK investigates their annual demand in a survey. Finally, INFACT selects 3 products that seemed interesting to buyers and then initiates product development and production.

Need of a new trade model The wealthy are growing much wealthier while the middle class is being squeezed. n A radical and realistic new model is needed n n n to ensure that trade promotes development More than two billion people worldwide live on the equivalent of less than a dollar a day n Doha, Cancun rounds got failed

Average agriculture tariff rates (%) Exporting region High income countries Importing region High income countries 15. 9 Developing countries 21. 5 15. 1 18. 3 15. 6 20. 1 Developing countries World Source: Hertel and Martin (2000)

Average manufactuing tariff rates (%) Exporting region High income countries Importing region High income countries 0. 8 Developing countries 10. 9 3. 4 12. 8 1. 5 11. 5 Developing countries World Source: Hertel and Martin (2000)

REFERENCES n n n n www. maketradefair. com http: //www. oxfamint. org. in/MTF_India. htm. Fair trade for all – Stiglitz & Andrew Charlton http: //www. justchangeindia. com/frames. asp? file=concept. htm&head=Conce pt http: //www. oxfam. org/en/about/ www. traidcraft. co. uk www. profit. org. in www. irft. org http: //www. amazon. com/gp/productdescription/0199290903/ref=dp_proddesc_0/102 -58596309654526? ie=UTF 8&n=283155&s=books http: //www. nytimes. com/2006/04/02/books/review/02 reich. html? ex=130163 0400&en=7927 f 3 ab 7 a 931 eae&ei=5088&partner=rssnyt&emc=rss# http: //www. us. oup. com/us/catalog/general/subject/Economics/International/ ~~/dmlldz 11 c 2 Em. Y 2 k 9 OTc 4 MDE 5 OTI 5 MDkw. MQ== http: //www. powells. com/cgi-bin/biblio? inkey=1 -0199290903 -1 http: //hbswk. hbs. edu/archive/5219. html Fair trade for all – Stiglitz & Andrew Charlton

Thank You!! Presented by: LG - 5 Dhirendra Pratap Singh (13) Ranjan Mishra (36) Saurabh Pandey (47) Sohil Bhatt (52) Sumit Gupta (54)