Traidcraft and Fair Trade

Debate between Liz Twist and Jeremy Lefroy

Tuesday 18th December 2018 Westminster Hall

[Liz Twist]

I most certainly do agree with my hon. Friend. Traidcraft and the Fairtrade Foundation have played a huge part in ensuring that producers are accountable and that those principles are applied fairly.

My mother loved to look at the Traidcraft catalogue, find out what was going on from the Traidcraft bulletins and buy products—mostly chocolate, it should be said—from the back of her church. Churches have played a hugely important part in selling Traidcraft goods. She would get me to buy products either from the Traidcraft shop in Team Valley or on the internet.

Apart from my personal reasons for feeling sad at the news of possible closure and the loss of 60 jobs from our local economy in Gateshead, there are much more serious reasons why so many people were sad to hear of Traidcraft’s difficulties. As the company has said, it was

“overwhelmed by the outpouring of public concern and offers of support which demonstrates that the mission of Traidcraft still matters to many, many people”.

That is absolutely right. Next year marks the 40th anniversary of Traidcraft plc. Established as a Fairtrade enterprise, it initially provided a market for handcrafted items from Bangladesh at a time of great political turmoil there. Handicrafts, because they required minimal capital outlay for women in affected communities and could be produced alongside farming activities, provide an additional income source while preserving food security. Those values of supporting women, developing resilience and environmental concern have been recurring themes for Traidcraft over the years.

From its creation in 1979, the company developed into a public limited company with 4,500 individual shareholders and shares traded on the ethical stock exchange. It buys groceries and craft items from more than 70 producer groups in around 30 countries. Goods are sold through community resellers, online and through specialist fair trade shops. Traidcraft has pioneered fair trade products such as wine, charcoal and rubber gloves, alongside more familiar products such as tea, coffee, chocolate and biscuits. It has reached into thousands of homes—including my mum’s—and communities through its community sales force. What is more, it has had a real impact on the lives of countless producers and their families, delivering real social change.

Traidcraft was at the forefront of the Fairtrade movement and was a founder member of the Fairtrade Foundation along with Oxfam, the Catholic Agency for Overseas Development, Christian Aid, the Women’s Institute and the World Development Movement. The Fairtrade movement developed the Fairtrade certification system, which enabled those same fair trade principles to be applied by mainstream businesses. That was a vital tool for those businesses wanting to establish fairer and more just trading relationships and provided an independent guarantee for consumers.

[Jeremy Lefroy (Stafford) (Con)]

I congratulate the hon. Lady and the others on securing this important debate. I declare an interest, having been a member of the board of Twin, a fair trade organisation. I have been involved in fair trade for well over 20 years. The point that she makes about mainstream organisations is absolutely right. Does she agree that without the work of Traidcraft and others, such as CAFOD and Twin, fair trade would not have been taken up by the mainstream supermarkets, resulting in the enormous boost to fair trade that means that the UK has, I believe, the largest fair trade market in the world?

[Liz Twist]

The hon. Gentleman makes an excellent point. I sincerely believe that without the input of those organisations and Traidcraft, we would not be in the position where we now take it for granted that we can obtain fairly traded goods in mainstream supermarkets and other shops. I most certainly agree with him on that point.

The Fairtrade Foundation has recognised that Traidcraft plc’s approach has been an inspiration to many and that the approach it pioneered in 1979 is now also being taken forward, as the hon. Gentleman said, by other brands and businesses that choose to trade fairly. Traidcraft also established a separate development charity, Traidcraft Exchange—thankfully, it is not under threat—which is supported by individual donations and institutional donors including the Department for International Development, Comic Relief and the Big Lottery Fund. The charity works with farmers and artisans who are not part of fair trade supply chains and campaigns for justice in international trade.

So, what happened to Traidcraft? Just as for many other UK businesses, life has been difficult. The retail environment has been particularly challenging. The success of fair trade products in mainstream suppliers and their availability in supermarkets is welcome, but that challenges fair trade enterprises such as Traidcraft on price and scale.

Much as we might like to escape the B-word, it is simply not possible. Currency fluctuations immediately after the EU referendum and uncertainty about Brexit continue to affect Traidcraft. Traidcraft estimates that the drop in the value of the pound within a week of the referendum cost the company £350,000. With most of the company’s £2.4 million of purchases from suppliers in developing countries paid in dollars, that early 15% currency drop meant that Traidcraft had less to spend, and holding true to its long-held fair trade principles meant that it could not, as others might, exert downward price pressure on its suppliers.

--- Later in debate ---

[Liz Twist]

I thank my hon. Friend for that intervention, and I will touch on some of those points later.

Brexit, as we have said, continues to affect the company’s trading. When I spoke to Traidcraft’s chief executive, Robin Roth, shortly after the announcement of a potential closure, I asked what I could do to help to secure Traidcraft’s future. He told me that the best thing that I could do would be to encourage people to buy from Traidcraft in the run-up to Christmas, as a strong Christmas—the Christmas catalogues were nearly ready—would allow Traidcraft to look to a future for the organisation.

That is what I have tried to do locally, and—with the help of my right hon. Friend the Member for East Ham—in this House. I hope that many hon. Members will have bought at least some of their Christmas gifts from the Traidcraft catalogue, which we sent to all Members some weeks ago. Traidcraft do a fine line in quality socks as well as more decorative crafts, and they have certainly featured on my Christmas list.

I am glad that Traidcraft supporters have, I am told, responded magnificently. That has meant that the company has been able to put together a plan for the future that will see the company refocus and survive. Sadly, many of the jobs in Gateshead will be lost, the warehousing will be outsourced and there will be a focus on food and related goods and a very much narrower range of crafts, together with a new emphasis on consumers buying co-operatively. I look forward to seeing the new “Traidcraft 2” develop and grow, and will continue to support it.

Traidcraft, as part of the fair trade movement, has some asks of the Government. I thank the Minister for inquiring in advance whether there were any particular issues for which he could prepare. I do not believe that any of the asks will come as surprises to the Minister, although I was unable to give him that notice.

First, the Government need to reassure the many producers and farmers in vulnerable developing countries that the UK will put in place measures to preserve market access—if necessary, unilaterally—to avoid disruption. They urge the Government to provide reassurance that the needs of poorer countries and vulnerable stakeholders will be taken into consideration as future trade policy is developed and implemented.

[Jeremy Lefroy]

Does the hon. Lady agree that one of the great benefits of the work of Traidcraft, and others, has been that it works on the ground with producers and farmers, and enables them not only to increase their incomes, but to improve their quality and so much else? That engagement on the ground with producers and small-scale farmers, with whom I have worked for 30 years or more, is vital, because it means that money gets to the grassroots. So often, money does not seem to trickle down. This is money, support and agricultural extension work going in at the grassroots.

[Liz Twist]

I thank the hon. Gentleman, and I agree with him on all those points. One of the important things about Traidcraft has been that personal connection through the “meet the producers” tours, and being able to see in the catalogue who produces the goods. We must never forget the impact on individuals of the work of Traidcraft and other fair trade organisations. I hope that the Minister will reassure us that DFID will play its part in continuing that work.

The UK has a strong record of using its aid programme to support business development. The Government should continue their development work in that area and re-emphasise the inclusive approach that we have talked about within that, through a clear gender focus and support for small and medium-sized enterprises, ensuring that the trade and business environment enables them to voice their needs and to thrive.

As Traidcraft goes forward, it will look to offer consumers even greater transparency. As part of the review of the Modern Slavery Act 2015, the Government should update the official guidance to encourage companies to publish where they buy their goods from and the wages of their supply chain workers. The Government should consider legislation to make human rights due diligence mandatory, so that we can have that transparency and see exactly what is being done.

Finally, Parliament is considering the Agriculture Bill, which is perhaps not in the Minister’s immediate purview, although I am sure that he can have some input.