Traidcraft and Fair Trade

Catherine McKinnell Excerpts

Tuesday 18th December 2018 Westminster Hall

[Liz Twist]

My hon. Friend is absolutely right that Fairtrade traders, through Traidcraft, have worked to sell goods and, importantly, to raise the social and fair trade issues around those goods.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I, too, congratulate my hon. Friend on securing this debate. Last month, I attended an event hosted by Traidcraft in Newcastle entitled, “Who picked my tea?” It is a brilliant campaign that has resulted in Yorkshire Tea, Twinings, Tetley and Clipper all publishing who is picking their tea and their list of suppliers. That should help drive up the standards for those tea plantations in Assam. Does my hon. Friend share my view of the importance of Traidcraft’s work? Will she join me in calling on PG Tips and Typhoo to publish that information as well?

[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.

[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.

[Catherine McKinnell]

I share my hon. Friend’s concern about the impact on Traidcraft, and its need to reduce operations, because I, too, am proud of the fact that it has such strong roots in the north-east, in our region. Does she share my concern that the implications are not short term? Does she agree that we need to ensure that not only Traidcraft but all businesses that want to trade ethically can do so, and that that is not affected in any way by our departure from the EU?

[Liz Twist]

I thank my hon. Friend for that intervention. From our experience in the north-east, we know that a great many companies—not just Traidcraft, which we are discussing today—continue to feel the impact of the current uncertainty and fluctuations.