Fair Trade, Uniterra and Development: An Introduction

Fair Trade Overview
Fair Trade is a trading partnership based on dialogue, transparency and respect that seeks greater equity in international trade. Fair Trade contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized farmers and workers in the South¹.

The conventional trade system exhibits a number of recurrent problems including:
   
- Low and fluctuating world market prices;
- Trade regulations and subsidies that are biased against small southern farmers;
- Limited producer access to markets, credit and technology;
- Poor working conditions: low pay, overwork, unstable income, child and bonded labour;
- Environmental and health damage due to a reliance on pesticides and monoculture farming practices.

Fair Trade overcomes these challenges and brings greater benefit to marginalized farmers by adhering to the following seven principles:
 
1. Direct trade relationships
2. Fair pricing
3. Long term trade relations
4. Access to credit for producers 
5. Democratic and transparent organization
6. Protection of the environment
7. Local community development
 
In Canada, commodities that are Fair Trade Certified are sold with the TransFair Canada logo on their package. TransFair Canada is a member of the Fairtrade Labelling Organisations International (FLO), an umbrella organization that sets the standard for Fair Trade Certified products and provides support for labeling initiatives and Fair Trade Certified producer organizations worldwide.  In addition, Fair Trade handicrafts and artisan products are sold by businesses and organizations that are members of IFAT, the global network of Fair Trade organizations.

Brief History
Fair Trade began over 50 years ago when community and church groups in Europe and North America began buying products from other community organizations in Latin America, Africa and Asia. As the movement grew Fair Trade products came to be sold in specialty world shops in the West. Today, Fair Trade certified products are available in many grocery stores, restaurants and shops.

Benefit to Consumers   
Fair Trade certification benefits and empowers consumers by enabling them to:

- Purchase according to their principles and values;
- Become active players in finding a solution to global trade inequities;
- Access products of superior quality;
- Ensure that their purchases are ethically sourced².

Fair Trade and Uniterra
Uniterra is the largest international voluntary program in Canada. Jointly operated by CECI and WUSC, Uniterra mobilizes people and organizations in Canada and the developing world to reduce poverty by working to achieve the United Nation’s Millennium Development Goals.

Through Fair Trade, Uniterra partner organizations in the South have access to the resources, skills and knowledge they need to significantly reduce poverty in their communities. Uniterra builds the capacity of partner organizations in the South by coordinating North-South and South-South volunteer placements and partnerships. In Bolivia, Botswana, Burkina Faso, Guatemala, Mali, Niger, Nepal, Sri Lanka and Vietnam, Uniterra partner organizations produce Fair Trade agricultural and handicraft products. In Canada, Uniterra works with volunteers, partner organizations and college and university committees to increase the recognition, demand and availability of Fair Trade Certified products across the country.

Fair Trade and Gender
Gender issues are at the heart of every project executed by Uniterra. Whether in education, agriculture or any other sector, particular attention is devoted to gender equality and the narrowing of gender gaps. International Fair Trade standards also emphasize equal opportunity, empowerment and compensation for men and women.

Uniterra has promoted gender equality, for example, by supporting women’s shea butter cooperatives in West Africa.  Uniterra has helped the cooperatives improve the quality of their product so that it can be marketed internationally as Fair Trade and Organic Certified.  Through their partnership with Uniterra, the women have built their individual and group business capacities and contributed to poverty reduction in their rural communities.

Fair Trade and the Millennium Development Goals (MDGs)
Fair Trade contributes to the achievement of the Millennium Development Goals by:

- Drawing producers and consumers around the globe into a more equitable system of exchange (MDG #8);
- Helping women gain economic independence and security by ensuring they receive equal opportunity, just compensation, and power in decision-making (MDG #3);
- Guaranteeing producers receive a just price so that they are able to escape poverty, ensure food security and send their children to school (MDGs #1, 2, and 4);
- Incorporating a community investment premium that enables communities to invest in health and education infrastructure and services (MDGs #5 and 6);
- Upholding a commitment to sustainable, safe production practices that protect both the environment and health of producers (MDG #7).

Information Sources
Uniterra – www.uniterra.org
TransFair Canada - www.transfair.ca
The Fair Trade Labelling Organization International (FLO) – www.fairtrade.net
The International Fair Trade Association - www.ifat.org

 *¹  http://www.transfair.ca/en/fairtrade/
 *²  http://www.transfair.ca/en/fairtrade/benefits/