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This is the draft of the Charter of Criteria prepared by News!, the Network of European World Shops
Fair Trade Criteria for European World Shops, importers of Fair Trade products sold in European World Shops, and suppliers/ producers of Fair Trade products
The 2,500 World Shops in Europe, affiliated in the Network of European World Shops NEWS!, sell products which have been traded fairly with respect for people. Fair Trade mainly supports groups of producers who are economically and politically disadvantaged. Besides selling products, World Shops also organise activities and campaigns to inform their customers and the public about world trade. The European World Shops work together to improve the market share of producers, mainly but ot exclusively from the South, in world-wide trade. They organise joint campaigns aimed at the public, the media, politicians and companies with the long-term objective of bridging the gap between the South and the North, developing and developed countries and sectors within countries. The annually organised European World Shop Day in May is an example of these activities.
Each of the 15 national associations of World Shops in Europe has its own criteria for defining Fair Trade. These criteria are not harmonised across Europe. NEWS! has studied all the criteria that have been developed in Europe and, based on that study, has drawn up the following list of criteria which is offered to the national associations of World Shops as minimum standards by which shops, importers , suppliers and producers may be evaluated as Fair Traders. The NEWS! conference will recommend that these criteria be adopted by the National Associations of World Shops. The World Shops will continue to be free of course to adopt stricter criteria for their own organisations if they so wish.
It is intended that European-wide commitment to these criteria will provide consumers with assurance that the products in the World Shops have been traded fairly (and, so, increase the World Shops' share of the market for fairly traded products, thereby providing more support to producers).
Fair Trade is a partnership between producers and buyers who are working to remove the disadvantages suffered by producers, to increase producers' access to markets and to promote the sustainable development process. Its mission is to promote social equity, environmental protection and economic security through trade.
The key principles of Fair Trade are:
(1) respect, and concern, for people and the environment, putting people before profit
(2) the creation of means and opportunities for producers to improve their living and working conditions
(3) the development of mutually supportive relationships between sellers and buyers
(4) payment of a price by the buyers which ensures the producers a fair return for their labour and an acceptable return to the marketing organisation.
(5) awareness raising on the situation of women and men as producers and traders
(6) promotion of equal opportunities for women
(7) protection of women's, children's and indigenous people's rights.
The following constitute the minimum standards which need to be achieved for a shop to be admitted into a World Shop Network in any European country:
(1) The shop endorses, through its own mission or values statements and publicity material, the definition of Fair Trade given above.
(2) The shop sells fairly traded products (its primary purpose for existing as a shop is to sell fairly traded products in support of Fair Trade).
(3) The shop informs the public about its aims, the origin of its products, the producers, and about world trade. It supports campaigns to improve the situation of producers, as well as to influence national and international policies.
(4) The shop is open and transparent about its structure and all aspects of its activities.
(5) People working in the World Shop are motivated by their commitment to Fair Trade.
(6) Everyone employed in the shop, whether as a volunteer or paid staff, is involved in decision-making affecting them.
The following constitute the minimum standards to be achieved by import organisations in Europe supplying fairly traded products to World Shops.
(1) The importer endorses, through its own mission and values statements and publicity material, the definition of Fair Trade given above.
(2) The importer seeks to put the principles of Fair Trade, expressed in the statements in Paragraph 2 above, into practice. This means: - paying a price for products which at least ensures that the producers receive a fair return for their labour
This also means in its own organisation:
(3) The importer provides assistance to the World Shops in the form of information about the products being sold and the producers who have made them, plus reasonable access to other expertise not directly available in the shops.
(4) The importer is open and transparent about its structure and all aspects of its activities.
(5) The importer encourages suppliers to find ways to involve the producers themselves, both women and men, in decision making, and to promote equal opportunities for all.
(6) The importer is committed to working with producers to try to improve the environmental friendliness of production methods, products and packaging.
The following constitute the minimum standards that need to be achieved for an exporter of Fair Trade products and/ or producer organisation to be accepted as a supplier by a World Shop.
(1) Export and/or producer organisations seek to offer fair remuneration and good working conditions to their directly employed staff and to any self-employed producers contracted to make products for them.
(2) Export and/or producer organisations are committed to improving the social well-being of their directly employed staff and any self-employed producers contracted to make products for them.
(3) Export and/or producer organisations find ways to involve their directly employed staff and self-employed producers working for them in decision making.
(4) Export and/or producer organisations are open and transparent about their structure and all their activities.
(5) Export and/or producer organisations raise awareness of the situation of women, men and children in trade, and promote equal opportunities for women.
(6) Export and/or producer organisations seek to protect human rights especially of women, children and indigenous people.
(7) Export and/or producer organisations demonstrate concern for the sustainability of the environment.
NOTE: There are many different types of suppliers of Fair Trade products/ exporters and producer organisations. Some exporters/ suppliers are also producers, some export on behalf of groups of producers who are not capable of exporting direct. Some both produce and export direct as well as offering export as a service to smaller groups.
Most organisations engaged in the production and/or export of Fair Trade products have brought their scarce means together to work for common progress. They may be formal or informal associations, cooperatives, rehabilitation centres, income generating/ employment creation schemes, or village groups. Some are private companies with an outspoken social interest. All are trying to provide people who are disadvantaged in some way (e.g. by gender, disability or social exclusion) with the opportunity to earn a decent living. Almost all suppliers/ exporters and/ or producers are in the South but, increasingly, importers and World Shops are making contact with disadvantaged groups in the North such as native Americans, Australian aborigines, income generating schemes for people displaced by conflict in Eastern Europe and the former Soviet Union, and alternative social experiments in our own countries.
(Brussels 24.1.98)
This is the draft of the Guidelines on monitoring Fair Trade criteria prepared by News!, the Network of European World Shops
It is proposed by NEWS! that National Associations of World Shops approached by World Shops seeking admission, or National Associations or individual World Shops approached by European importers or directly by export organisations or producers seeking to supply them with products, should share the Fair Trade Criteria with them and ask them to demonstrate how they are seeking to meet them.
These guidelines may also be shared to indicate to potential trading partners the type of evidence which NEWS! believes would be an indication of their commitment to Fair Trade and their efforts to trade fairly. National Associations of World Shops are asked to take into account in their decision making that all organisations are at different stages of development and some that are less-developed may not be able to produce all the documentary evidence suggested. In this case, a judgement has to be made on the evidence that is produced.
It is suggested that each National Association designates a person to be responsible for handling enquiries and gathering documentation, and then advising the Board in each country on the extent to which an applicant appears to meet the criteria, so that decisions may be reached quickly and efficiently.
NOTE: Numbers in brackets represent the number of the criteria to which the indicator refers.
Shops seeking admission to National Associations of World Shops are invited to provide their country Association with copies of most or all of the the following documentation in support of their claim to be a Fair Trader:
i. (1) A copy of its mission or values statements plus publicity material which demonstrate the shop's endorsement of Fair Trade principles.
ii. (2) A copy of its goals or objectives as a retailer, which demonstrate that the shop's primary purpose for existing is to sell fairly traded products.
iii. (2) An inventory of products sold, with Fair Trade products and their sources highlighted.
iv. (3) Copies of information materials displayed in the shop to inform the public about Fair Trade.
v. (3) Evidence of willingness by the shop to participate in a Fair Trade campaign and/or engage in lobbying activities.
vi. (5 & 6) A copy of personnel procedures adopted by the shop
Having examined the documents, the National Association of World Shops may wish to ask the applicant shop certain specific questions relating to aspects of its activities to reassure itself of the shop's commitment to Fair Trade and its principles.
On successful conclusion of the discussions, the shop either will be admitted to the National Association concerned, or be informed that it needs to show evidence of improvement in a particular area before making another application in no less than one year's time.
An importer seeking to supply World Shops with fairly traded products for retail, are invited to submit to the National Association of World Shops in their country copies of most or all of the following documentation in support of its claim to be a Fair Trader:
i. (1) A copy of its mission or values statements plus publicity materials which demonstrate the importer's endorsement of Fair Trade principles. (If the importer is a member of IFAT, a signed copy of the IFAT Code of Practice is acceptable. If the importer is a member of EFTA, then proof of this is acceptable.)
ii. (2) A copy of externally verified social accounts, or proof of monitoring by IFAT or EFTA, or its published Annual Report and audited accounts to provide evidence that the importer practices Fair Trade in its relations with producers and with its own employees.
iii. (2) A copy of its personnel procedures.
iv. (3) Evidence of assistance provided to the World Shops in the form of information about the products and producers, and other help.
v. (4 , 5 & 6) Documentary evidence (e.g. copies of letters/ partnership contracts) revealing (A) that the importer encourages suppliers to find ways to involve producers in decision making and to promote equal opportunities, and (B) that the importer is committed to working with producers to try to improve the environmental friendlines of production methods, products and packaging.
Having examined the documents, the National Association of World Shops may wish to ask the importer certain specific questions relating to aspects of its activities to reassure itself of the importer's commitment to Fair Trade and its principles.
On successful conclusion of the discussions, the importer either will be endorsed by the National Association concerned as a Fair Trader, or be advised that it needs to show evidence of improvement in a particular area before making another application in no less than one year's time.
An export organisation or producer able to export direct who is seeking to supply World Shops with fairly traded products for retail, is invited to provide the National Association of World Shops in each country with copies of most or all of the following documentation in support of its claim to be a Fair Trader:
i. (1, 2, 3, 5, 6 & 7) A copy of its mission or values statements plus publicity materials which demonstrate the exporter's or producer's endorsement of Fair Trade principles. (If the organisation is a member of IFAT, a signed copy of the IFAT Code of Practice is acceptable. If the organisation is registered with the FairTrade Labelling Organisation, this should be drawn to the attention of the National Association.)
ii. (1, 2, 3, 4, 5, 6 & 7) A copy of externally verified social accounts, or proof of monitoring by IFAT or EFTA, or its published Annual Report and audited accounts to provide evidence that the exporter or producer practices Fair Trade
Having examined the documents, the National Association of World Shops may wish to ask the exporter/ producer certain specific questions relating to aspects of its activities, or arrange for a designated evaluator to visit the organisation concerned to reassure itself of the exporter's / producer's commitment to Fair Trade and its principles.
On successful conclusion of the discussions or of the visit, the exporter/ producer either will be endorsed as a Fair Trader by the National Association concerned, or be informed that it needs to show evidence of improvement in a particular area before making another application in no less than one year's time.
If a world shop, import organisation in Europe, an export organisation or producer disagrees with the decision of a National Association of World Shops it may appeal to the National Association for reconsideration.
If the National Association abides by its original decision and the world shop, importer, export organisation or producers is unable still to accept this, an appeal may be made to the Network of European World Shops.
If NEWS! upholds the decision of the National Association, a third party may be called upon to mediate in the dispute and find a solution.
NOTE: World Shops cannot be forced either to buy from organisations (importers, exporters or producers) with which they do not wish to enter into a trading relationship.
(Brussels 24.1.98)