Fairtrade Certification

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?

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.

I congratulate the hon. Member on the way he is articulating the case for Fairtrade. It is important that it is robust and traceable and has strong integrity, but if we are to scale up, should we not also integrate international Fairtrade standards into the Groceries Code Adjudicator, which is part of UK legislation? After all, the GCA is looking only at the final supplier to the large supermarkets in this country. If we can establish a strong relationship between international Fairtrade and the Groceries Code Adjudicator, which is currently under review, would that not be another step forward?

The hon. Member’s highlights that certification schemes, important though they are, are not the only answer; we need to look at legislation and statutory guidance that will drive change in the system overall. I will speak later about what we can do in legislative terms to ensure that all the supply chains involved in goods and services sold in the UK are properly regulated and that we have a system in place to look at standards in the UK and elsewhere in those supply chains.

A recent example of the advocacy work of the Fairtrade Foundation is its “Brew it Fair” campaign, which called for greater accountability and responsibility in the tea sector. Some 13 million people source employment from the tea industry, and 60% of the world’s tea is produced by smallholder farmers. Regrettably, this market is made up of a high number of farmers and workers with low incomes and wages, working in the context of increasingly difficult conditions for farming due to climate change. This campaign called on the Government to do more to collaborate with the industry to deliver living wages and incomes for those in the tea sector and to be bolder in how we approach supply chain due diligence, and called for the UK to continue to honour its international climate finance commitments. During Fairtrade fortnight, at the end of September, around 117,000 people across the UK engaged with more than 1,000 local grassroots activities in support of the “Brew it Fair” campaign. Many of them were Fairtrade communities, a network of local campaign groups across the UK.

My hon. Friend the Member for Lancaster and Wyre (Cat Smith) wished to speak today but is unable to do so due to prior commitments. However, she told me she wants on the record her recognition of the hard work of the Garstang Fairtrade community—passionate campaigners on these issues in the world’s first Fairtrade town.

Support for Fairtrade cuts across communities and generations, from faith communities who see it as an important part of their social mission, to student activists inspired by its empowering impact, to rural communities who know through lived experience where power lies in agricultural supply chains. When Fairtrade hosted tea farmers from Kenya and India to speak directly to politicians and policy makers, that demonstrated exactly why advocacy is so important: it closes the vast proximity gap, often spanning cultures and oceans, between those who make decisions in this place and in boardrooms and those working at the very beginning of supply chains to deliver so many of the goods we enjoy.

I am dreadfully sorry to ask, but is the hon. Gentleman aware that those who are campaigning for Fairtrade believe that it can succeed properly only if this Government lead the way with their official development assistance budget, which has been severely cut? Does he agree that to achieve the aims that we all want to achieve, the Government need to look at their ODA budget? I cannot see how we can help countries enough if do it purely through trade.

Trading relations become more important in the context of cuts to aid budgets, not just here but elsewhere in the world. Trade and business become more important as means of supporting and helping countries, and of narrowing gaps of inequality globally. There is a separate debate, which we might have at another time, about the levels of aid from the UK and elsewhere, but in the current context, trade becomes more important, not less.

In recent correspondence I had with the University of the Arts London, it highlighted structural challenges that are particularly clear in the fashion and textile sector. The debate so far has concentrated on food, but the university’s analysis shows that, despite strong consumer demand for ethical clothing, uptake of standards such as Fairtrade remains limited because of the lack of regulatory pressure, opaque multi-tiered supply chains and the competitive disadvantage faced by responsible brands. Its research underlines exactly why certification alone cannot fix a market that rewards the cheapest, rather than the fairest, production. We need human rights and environmental due diligence legislation to create that system change.

Some may worry that such legislation is a recipe for more red tape that will hamper growth, but that need not be the case. Many UK businesses already have to follow EU directives because that is where a large part of their market is. We risk becoming a dumping ground for unethically sourced products while our own British companies, following best practice in order to trade with our closest and largest neighbours, are undercut. Some 50 global businesses have already signed statements calling for human rights due diligence legislation, including UK brands such as Tesco, Twinings and John Lewis. Organisations such as the Corporate Justice Coalition are working hard to advocate on the issue by proposing a business, human rights and environment Act.

Current legislation on supply chain transparency lacks effectiveness. Section 54 of the Modern Slavery Act 2015 requires companies only to report on their operations, but not necessarily to take responsible actions to address and prevent the problems. Having met the Independent Anti-Slavery Commissioner, I am aware that they are pushing for mandatory human rights due diligence legislation in the UK. I would appreciate the Minister making reference to the commissioner’s work in his response.

I remind Members that they should bob if they wish to speak. I am going to call the Front Benchers at 2.25 pm at the latest. I do not think I need to impose an official limit on speeches, but it would be brilliant if Members keep their remarks within eight minutes.

It is always a real pleasure to serve under your chairship, Mrs Hobhouse. I thank the hon. Member for Glasgow North (Martin Rhodes) for excellently setting the scene, for his contribution today and for his hard work on this subject over the years, which is not forgotten about and provides extra context to the debate and to his speech.

The fairtrade system sets standards across the globe on ethical sourcing, fair wages, safer working conditions and proper environmental practices—four things that probably all of us in this Chamber would fully support. Fairtrade is a well-known organisation and it plays a key part across the United Kingdom of Great Britain and Northern Ireland, including in schools, so I am pleased to participate in this debate. In Northern Ireland— I hope this is true on the mainland too—children are very much aware of the Fairtrade organisation at an early age. As a result, they are well placed to tell their parents and other adults and remind them of the role they can play. The Minister is not responsible for education, but perhaps he can give us some idea of what is done to encourage schools more strongly?

The hon. Member is making an important point about young children in schools. Last month, Joshua, Leyla and Elizabeth from St George’s primary school in my constituency wrote to me about their campaign to promote sustainable palm oil labelling. They are carrying on a fine tradition in Bolton, where one of the first Fairtrade shops in the country, Justicia, opened in 1985. Does the hon. Member agree with Joshua, Leyla, Elizabeth and myself that sustainable palm oil labelling is crucial for informing consumers and promoting ethical businesses, alongside greater Fairtrade initiatives?

I certainly do. I am greatly encouraged by what the hon. Gentleman said, and by those three young children in particular in relation to their work on palm oil. That is one of the campaigns that school children in Northern Ireland are also part of. The hon. Gentleman is right to highlight that, and I am sure that the children he mentioned will be given a copy of Hansard, where their names will be printed for posterity. I thank them for all that they are doing—well done! That encourages me when it comes to the greater picture for children.

UK businesses use Fairtrade to demonstrate commitment to ethical practices. Northern Ireland has held Fairtrade status as a region since 2004. It is something we are greatly committed to and have a great interest in. The NI Fairtrade forum works with councils, schools, businesses and communities to increase awareness. One of my staff members remembers that in primary school they celebrated a Fairtrade week, when all pupils had to bring in the labels of any foods or packaging they could find in their homes that were Fairtrade. I can imagine children scouring their cupboards to find something in their house—hopefully there were plenty of products that represented Fairtrade.

Fairtrade products are widely available in supermarkets across Northern Ireland. The hon. Member for Glasgow North referred to some of the businesses that carry Fairtrade products. I am glad to report that the likes of Tesco, Asda, Sainsbury’s and the Co-op all carry Fairtrade products that are sourced globally. Those shops are making these products practically and physically available across Northern Ireland, and they take in a large proportion of shoppers—although not all of them, of course.

Let us honest about the situation: some smaller, perhaps family-run, businesses will struggle slightly more because producers are paid a fair minimum price and premium. Smaller businesses with tight margins and sometimes unpredictable cash-flow will struggle to source Fairtrade products, for fear of passing the cost increases to customers. It is not possible for everyone to source Fairtrade products, but for those who commit to it and wish to do it, there is a way of making it happen. The smaller businesses in my constituency rely on the local wholesalers and independent distributors which, again, may not carry a whole range of Fairtrade products. Some of those suppliers perhaps need a greater awareness, so they can do more. People want to do their best, but in terms of finance they must work with what is available to them.

It is a pleasure to serve under your chairship, Mrs Hobhouse. I thank my hon. Friend the Member for Glasgow North (Martin Rhodes) for securing the debate. I also thank the team at Fairtrade UK for their incredible work; it was a pleasure to attend their festive reception in Parliament yesterday afternoon.

I have been a supporter of Fairtrade for some time, inspired by some of the wonderful activists in my home city of Wolverhampton. I am very proud that recently the Wolverhampton City Fairtrade Partnership celebrated Wolverhampton’s 21st year as a Fairtrade city, showing the care and compassion of my constituents in Wolverhampton West and others in the city. I recently attended a tea party at the City of Wolverhampton College to celebrate Fairtrade fortnight, and it was a joy to see that the students had baked delicious cakes to promote the event, and to hear more about the work that Wolverhampton Fairtrade has been doing. I continue to work with the group on a regular basis to support the consumption of Fairtrade products in our city.

As we know, Fairtrade is much more than just a label: it is about justice, equality, humanity and sustainability. Fairtrade benefits the planet by helping the fight against climate change. Fairtrade certification enables farmers to respect human rights and tackle environmental risks, including by banning toxic pesticides, protecting biodiversity and encouraging sustainable organic farming practices that are free of hazardous waste and use water efficiently.

Shoppers in the UK know that when they purchase Fairtrade products they are making an ethical purchase, supporting fair, sustainable farming practices around the world. Most importantly, Fairtrade helps farmers across the globe who would otherwise live in deep poverty and very poor conditions to receive guaranteed minimum prices, with improved working conditions and a proper say in how decisions are made. On top of that, Fairtrade certification offers an additional financial premium that allows farmers to democratically decide how to invest the money in community development projects, such as schools, training and water treatment systems, thereby actively improving local communities and securing their livelihoods.

It is a pleasure to serve under your chairship, Mrs Hobhouse. I pay tribute to the hon. Member for Glasgow North (Martin Rhodes) for presenting the case for Fairtrade, and for fairer trade practices overall, so compellingly. I also pay tribute to everybody who has been part of the Fairtrade campaign for many decades. I have been involved in it for at least 30 years, and it is a fantastic example of a widely supported public campaign that has, as the hon. Member for Strangford (Jim Shannon) said, found its way into our schools and communities, and also into our supermarkets, making it easy for people to choose Fairtrade products. That is fantastic and to be celebrated.

This is not just about individual shopping choices, important though they are; it is also about ensuring a level playing field for all producers, so that good environmental, human rights and workers’ rights practices are not an optional add-on but fundamental to the way we do business. That is why I warmly welcome the Brew it Fair campaign and the petition handed in at Downing Street yesterday. I was involved in the delivery of a similar petition a few months ago with the Corporate Justice Coalition. Again, that had well over 100,000 signatures from citizens across the country calling for mandatory human rights and environmental due diligence legislation. We have to ensure that the positive practice encapsulated by Fairtrade is not just an optional extra, but how business is done.

More than 80 MPs have signed an early-day motion in support of the Fairtrade tea campaign and mandatory human rights and environmental due diligence legislation. The reasons for supporting such legislation are clear. Introducing that horizontal legislation that obliges all UK businesses to take steps to prevent human rights and environmental risks in their supply chains, all the way down to smallholder farmers and workers, is the single most cost-effective measure we could take to support sustainability in the food system and to improve the UK’s international reputation for action to create a climate- compatible, sustainable, rights-supporting economy.

It is a pleasure to serve with you in the Chair, Mrs Hobhouse.

Picture the scene: Downing Street in December and jolly Christmas trees sparkling away. No, it is not “Love Actually”, but the moment—exactly 24 hours ago, I think —that my hon. Friend the Member for Glasgow North (Martin Rhodes), other officers of the all-party parliamentary group and I handed in the petition of 22,000 constituents. Such was the volume of names, the petition was in a blue cardboard box, carrying the logo that my hon. Friend described, with the distinctive swirly light-green and blue with a dot connoting a person. It was the Fairtrade logo, which people trust. It is like a kitemark.

When we buy stuff with the Fairtrade logo—bananas or whatever it is—we know what it means. As people have described, there is a minimum price guarantee for the farmer, and there is the Fairtrade premium—the financial bonus for community projects. Certification is a two-way bargain. On their side, the person being supplied has to provide transparent contracts. There are lots of things that these smallholders—they are often tiny farmers—find difficult, like getting finance up front, before the harvest season. Under the Fairtrade scheme, they can get money up front.

The scheme is about people, sustainability and community first, before naked transactional profit. Smallholding farmers can club together and get a lot more access to international markets than they would be able to get on their own. The scheme increases their bargaining capacity. It is also democratic and run on co-operative—I am a member of the Co-operative party—principles. The premium could go to football pitches, tuition fees or classrooms; that is decided by the community.

I do not know whether I am the only one in the room old enough to remember the 1980s and the advert with the man from Del Monte. Do you remember him, Mrs Hobhouse? He was a little bit neocolonialist in his hat and linen suit, and he swooped into a paradise-like community. Well, it was not all paradise, was it? He was on a plantation somewhere or other—it was an unnamed location—stroking his beard and inspecting fruit produce. It was some far-off location—somewhere in sunny climes. He was this western impresario and the community were all there, with their great expectations. In the end, the cliffhanger was resolved with a thumb up—“The man from Del Monte, he say yes!”, as one of the urchin children said. I like to think that in this day and age, it would be a certified, kitemark-able, Fairtrade business and the little urchin would be going to a school provided by this system and enjoying kicking a ball about on a pitch built with these community funds. That is what we would like to think, but it is an uneven playing field, as people have described.