Fairtrade Certification Debate
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Main Page: Liz Twist (Labour - Blaydon and Consett)Department Debates - View all Liz Twist's debates with the Department for Business and Trade
(1 day, 14 hours ago)
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Martin Rhodes (Glasgow North) (Lab) [R]
I beg to move,
That this House has considered the role of Fairtrade certification in UK business and trade.
It is a pleasure to serve with you chairing for the second time in a fortnight, Mrs Hobhouse. I draw attention to my entry in the Register of Members’ Financial Interests: I was employed by the Scottish Fair Trade Forum prior to my election, and am currently chair of the all-party parliamentary group on Fairtrade.
Can we all honestly say we know who made the clothes we are wearing? When we buy a chocolate bar, do we always consider who grew the cocoa and under what conditions they worked? With every drink of tea, do we consider whether the tea farmer was paid adequately for us to enjoy our brew? Even as morally conscious as many of us would like to consider ourselves, the answer to those questions is very likely no. In this deeply globalised world, it is not possible for individuals to investigate the ethics of every product they buy.
Equally many corporations use their market power to exploit farmers and workers, suppliers of tea, cotton, and cocoa, with little regard for the environment and human wellbeing. That is why certification standards are important: they empower individuals to make informed purchasing choices through visible certification symbols, while also transcending the individual by helping to create a more ethical system of supply and demand, often by offering fair prices for products, financing for farmers, independent auditing of farming practices, transportation of goods, and processing to ensure high standards for people and the environment.
Not all certification standards were created equal. Some schemes can be used for greenwashing or to hide unethical practices through poor auditing standards. We must continue to champion independent certification standards and verification systems, and challenge those who opt for less demanding alternatives or no standards at all. I welcome the Government’s responsible business review, which I believe provides an opportunity for the UK Government to learn from certification standards as a way of delivering ethical business practices. I would welcome the Minister’s reflections on this in his response.
With that, I come to the main focus of this debate: the Fairtrade certification mark, which is one of the most recognised and effective certification standards. It is a household name, with an estimated 91% of UK consumers recognising the Fairtrade mark and some 78% caring about it. The blue, black, and green mark has come to be synonymous with certification standards. What really makes the Fairtrade mark so important is not just its public recognition or popularity, but the impact it has had and continues to have for farmers and communities globally.
Fairtrade guarantees a minimum price for farmers, provides a Fairtrade premium, ensures labour and environmental standards, and provides support and training. In practice, that means there is a price safety net enabling farmers to sell their products to cover the average cost of sustainable production. That income goes directly to farmers to increase their income, improve their livelihoods and increase wages for their workers.
The premium is paid directly to farmers via co-operatives; for every kilogram of produce sold, the funds must be spent democratically to invest in a community development project. It has been estimated that over the 25 years to 2019, Fairtrade farmers and workers have received around €1 billion in Fairtrade premium as additional funds to be invested in their communities and businesses. In 2023 alone, producers earned more than €211 million in Fairtrade premium. The projects and numerous types of training on the ground, including improved agricultural practices, climate resilience, business management, literacy and gender equality, have been supported by the premium.
Although the Fairtrade Foundation here in the UK does more than just implement its certification processes, there will always be limits to how much such an approach can deliver improved conditions for people and the planet, due to structural barriers and the imbalance of power in the competitive market system. This is why Fairtrade’s advocacy is so important. It helps producers, particularly smallholder farmers and workers, who usually are not given access to participate in public debate or to influence legislative and policy frameworks for the benefit of people and the planet.
The certification scheme is one part of the work of the Fairtrade Foundation, and the foundation in turn is only part of the global Fairtrade movement, bringing together consumers, producers, businesses and campaigners in a unique global movement for change.
I thank my hon. Friend for securing this debate. Through their pioneering work, the Fairtrade movement and other organisations, such as Transform Trade, have demonstrated that we can have a real impact on human rights abuses and working conditions abroad by upholding standards in our own supply chains. Does he agree that we should work with big companies to incentivise best practice and transparency, protecting small and ethical businesses in the process?
Martin Rhodes
I agree that it is important that we look at reforming global trade in different ways depending on the particular context. One of the great successes of Fairtrade in the UK has been getting products into mainstream retail, where most people do their shopping. When it comes to quantity, that is where those products need to be. However, it is also important that the Fairtrade movement has supported other Fairtrade businesses to do all of their business Fairtrade and provided an alternative model of doing business. Both approaches are why Fairtrade has been so generally successful, accepting the current situation and how we make it better while also looking at how we build a better system overall.