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International trade rules have been developed by rich countries to serve their commercial interests, and so they have captured a disproportionate share of the benefits of trade leaving developing countries and poor people worse off. For the past thirty years EU countries have used institutions like the World Bank, International Monetary Fund and World Trade Organisation to force poor countries to open their economies to Western trade. In doing so, poor countries are denied the chance to protect their fragile economies and industries (which is one of the ways in which the UK and almost every now-rich country developed) and are thrown in to open competition with developed countries before they are ready.
For example, rather than rich countries’ goods being too costly for developing country consumers, often agricultural goods produced in the US, EU and OECD countries are heavily subsidised by their governments, and the resulting overproduction is then ‘dumped’ onto developing country markets, undercutting local farmers. This is devastating for local economies and forces millions further into poverty. While developing countries can rarely afford to subsidise their own farmers, they are particularly vulnerable to these cheap imports as their markets have been forced open through free trade agreements.

Economic Partnership Agreements (EPAs) are free trade deals being negotiated between the European Union (EU) and 76 developing countries – mostly former colonies in Africa, the Caribbean and the Pacific. The agreements set the rules of trade between Europe and these countries for decades to come, affecting the lives of millions of people. These agreements are controversial as they force poor countries to ‘liberalise’ their economies too fast and too much

There is now ample evidence which shows that this liberalisation agenda actually increases poverty, especially when imposed from outside and not driven by country needs and timetables. Instead, poor countries need the freedom and right to protect and support their industries and farmers until they are strong enough to compete internationally. They need trade justice.

According to the World Bank, 2.7 billion people – nearly half the world’s population – live in poverty, unable to meet their basic needs. And over 1 billion people, most of them farmers and farm workers, live in ‘extreme poverty’ on less than US$1 per day. The vast majority of these poor people live in developing countries, and it is these countries that have also been hit hardest by the recent rise in food and fuel prices, which has caused many millions to sink further into poverty.

An estimated 1.5 million producers and their families (altogether 7.5 million people) worldwide now benefit from the guaranteed price, social premium and empowerment that Fairtrade provides. In 2008, consumers worldwide spent a record £2.7 billion on Fairtrade-certified products.

In 1994, Green & Black’s Maya Gold chocolate became the first UK retail product to be awarded the Fairtrade Mark by the Fairtrade Foundation. Since that time, over 3000 products ranging from coffee to sugar to flowers have become Fairtrade-certified. Fairtrade sales in the UK have grown by around 40% in the last five years, showing that the Fairtrade message has spread. A 2008 survey showed that 70% of UK consumers recognised the Fairtrade Mark, up from 20% in 2002, with 64% linking the Mark to a better deal for producers in the developing world.

It is estimated that 1 in every 8 pounds spent on Britain’s High Street goes to Tesco alone, and between them the ‘Big 4’ supermarkets control access to the majority of British shoppers. This gives supermarkets enormous power, and the Competition Commission has found them guilty of exploiting their suppliers. Millions of people, most of them women, in developing countries earn desperately needed incomes as they grow, pick and pack the goods that we buy and eat every week. Yet many of these workers struggle to earn a living wage, as supermarkets force down prices around the world. Part of Traidcraft's mission is to ensure that UK companies trade fairly and that these poor overseas workers and farmers get a fair deal. We are campaigning for the creation of a supermarkets watchdog to make sure that supermarkets stick to the government’s recommended Code of Practice and don’t exploit their suppliers.

Trick question – they’re all equally important!
Whatever people do to support Traidcraft in fighting poverty through trade – whether it’s buying Fairtrade goods, campaigning for trade justice or raising vital funds for Traidcraft Exchange through fundraising events – they make a crucial contribution to helping us carry out our work successfully.