Fairtrade Certification

Wera Hobhouse Excerpts

Thursday 11th December 2025 Westminster Hall

[Martin Rhodes]

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.



Fairtrade shows that ethical trade can deliver; human rights and environmental due diligence would take it from optional to systemic. That said, the lessons of this debate for the Government are not just about the Fairtrade mark, a more ethical tea industry, or even important changes in due diligence laws. As we face a world of pressures and reductions in aid budgets, including our own, it places on us a greater and more urgent responsibility to use progressive approaches to trade and business and to promote progress on human rights, the environment and economic growth concurrently.

I shall conclude on that wider context. With the reductions in UK official development assistance, we should be viewing ethical trade and responsible business as cost-effective ways to put our principles into practice. Principles such as poverty reduction, gender equality and environmental sustainability can all be advanced through strong due diligence laws, and by growing our trade with allies that share the same high standards. But we are also required to take proactive action against regressive trade policies—most notably the use of investor-state dispute settlement provisions, which are mechanisms to allow overseas investors to sue Governments for taking legitimate regulatory decisions in the public interest.

The Government’s recent trade strategy contains very welcome and strong commitments to embedding human rights and environmental practices into our trade policy. I similarly welcome the Government’s responsible business conduct review, which shows their commitment to tackle the issues we are addressing in this debate. Such Government engagement, led by the Minister, is welcome.

The Labour Government was elected on an ambitious programme for workers’ rights and environmental sustainability. This is now an important opportunity for us to put those priorities into practice, not just here in the UK but in our global supply chains. I look forward to the Minister’s response and the rest of the debate.

[Wera Hobhouse (in the Chair)]

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.

--- Later in debate ---

[Rebecca Paul (Reigate) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Hobhouse. I begin by congratulating the hon. Member for Glasgow North (Martin Rhodes) on securing today’s informative and thoughtful debate. All the contributions have been insightful, but I particularly enjoyed the speech by the hon. Member for Ealing Central and Acton (Dr Huq) who spoke about the man from Del Monte, taking me back down memory lane. I had not thought about him for a long time, probably not since the ’80s.

This is a timely debate. It rightly draws attention to a topic that has relevance to how the UK positions itself as a responsible trading nation and global partner. Fairtrade certification schemes have become a visible and recognised feature of British consumer life. They are well understood by the public, well supported by major retailers and increasingly used by UK businesses to demonstrate transparency and ethical practices across global supply chains. This debate invites us to reflect on how Fairtrade sits within the wider landscape of British trade and business policy, and how it might continue to support responsible sourcing, environmental sustainability and long-term development goals.

At its core, Fairtrade is a voluntary certification scheme applied to consumer goods such as bananas, cocoa, coffee, tea and sugar. It sets minimum prices for producers, offers a Fairtrade premium to be invested in community projects, and lays out standards on labour rights and environmental protection. The scheme is built on a partnership model between producers in the global south and businesses and consumers in the global north. Over time, Fairtrade has come to play a role in supporting responsible UK sourcing practices. The UK has long been a leading market for Fairtrade goods, and British supermarkets were among the first in the world to adopt the Fairtrade label at scale. The distinctive mark is now found on thousands of product lines sold in every part of the country, from major supermarket chains to small independent stores.

Beyond consumer familiarity, the benefits of Fairtrade certification also flow into business practices here at home. For British companies, certification helps to meet environmental, social and governance expectations from investors and consumers alike. It offers reassurance on the ethical provenance of goods and helps to reduce reputational risk in complex and sometimes opaque global supply chains. More broadly, Fairtrade fits into a wider framework of responsible sourcing in which UK firms are increasingly engaged. For example, the cocoa industry has seen significant improvements in transparency and long-term planning due to Fairtrade and similar voluntary schemes. British food and beverage companies, in particular, have drawn on Fairtrade principles to strengthen resilience and quality across key import lines.

There is also a trade policy angle. Fairtrade is not only about individual transactions; it reflects a broader outlook on how the UK interacts with developing markets. As the Government have observed in the recent trade strategy, trade and development are not mutually exclusive goals. We can support UK business while also encouraging more ethical, sustainable and secure supply chains. The developing countries trading scheme, launched in 2023 under the last Conservative Government, is one such example. It reduces tariffs on goods from low and middle-income countries and allows for easier trade in value-added products, helping to support economic diversification.

The previous Government were also clear that they recognised the role that voluntary schemes like Fairtrade play in complementing formal legal frameworks, such as the Modern Slavery Act 2015, which continues to apply to large UK businesses. In this context, Fairtrade certification can be seen as one of several tools that enable the UK to act as a responsible trading nation, championing higher standards while maintaining competitive access to key goods.

One of the great strengths of Fairtrade is the strong grassroots support that it enjoys. I saw that at first hand earlier this year when I was contacted by my local Reigate Fairtrade steering group to draw my attention to the “Brew it Fair” campaign. The campaign highlighted that, while the Government have committed to protecting human rights and environmental standards by endorsing the UN guiding principles on business and human rights, and by passing the Modern Slavery Act, wages, incomes and working conditions remain inadequate for the majority of the people involved in tea farming. As such, the Fairtrade Foundation called on the Government to introduce a law on human rights and environmental due diligence.

Again, good work was done in that space under the previous Conservative Government. The UK was the first country to create a national action plan to implement the UN guiding principles on business and human rights, which are widely regarded as the authoritative international framework to steer practical action by Governments and businesses worldwide on this important and pressing agenda. More recently, the UK has taken a number of steps through the Modern Slavery Act to ensure that no British organisation—public or private, and unwittingly or otherwise—is complicit through their supply chains in human rights violations. I am sure that the Minister will have more to say on that in a moment.

I conclude by noting that this has been an excellent debate, and I repeat my thanks to the hon. Member for Glasgow North for securing it.

[Wera Hobhouse (in the Chair)]

There is plenty of time, but I remind the Minister to leave a couple of minutes for the hon. Member for Glasgow North to wind up.

--- Later in debate ---

[Chris Bryant]

I suppose, on the whole, I was trying to say that I want to try to take down tariff barriers where I possibly can, so that we can engage in free trade, but that only works when we have fair opportunities underlying it. The hon. Member for Strangford will correct me if I have this wrong, but I think there is a phrase in the Bible about justice and peace kissing one another. Sometimes we strive for justice, but it is not real justice if we do not get peace with it; and sometimes we strive for peace, but it is not real peace if it is not based on justice. That is the combination of Shalom and Tzedek, to use the Old Testament terms, that we are striving for with free and fair trade.

As my hon. Friend the Member for Glasgow North said, the Fairtrade Foundation has been around for more than 30 years. It has done an amazing job in certification. Indeed, I think there are now more than 5,000 Fairtrade-certified products in the UK, and many of our constituents search them out every day of the week.

I, too, was approached by the Brew it Fair campaign, which has raised specific challenges around tea, including the living conditions of workers, gender inequality and a series of other issues. I praise it for raising those issues and bringing them to everybody’s attention.

I am delighted that Rhondda Cynon Taff county borough council in my constituency was made a Fairtrade county in 2007. It has therefore had a considerable period of time to roll out these policies. I am sorry to keep referring to the hon. Member for Strangford, but he asked about procurement. Of course, procurement is a key issue. We often have discussions in Parliament about what consumers do, but it is also about what the Government do.

The hon. Member is quite right that we produced a new national procurement policy statement in February this year, which lays out new ways in which people can drive this agenda into procurement, on the back of taxpayers’ money. Similarly, the Procurement Act 2023, which came into force on 24 February this year, has a new central debarment list, which Ministers can put people on if they have been involved in modern slavery. In that way, we can make sure the supply chain is cleaner.

Fair trade is not just about the issues I have mentioned. The International Labour Organisation says that, around the world, 28 million people are in situations of forced labour. I am sure that any of us could cite some of the places where that might be true. Similarly, every minute we are losing forest area equivalent to 11 football pitches, which is a challenge to all our climate change ambitions.

Of course, the impact of climate change will be felt most intensely among the poorest peoples on Earth. To see that, we only have to look at places such as the Carteret Islands, off Bougainville in Papua New Guinea, or the outlying poorer lands of Thailand, where some of the very poorest people are in danger of losing their homes, their livelihoods and their access to clean drinking water. Similarly, a million animal and plant species are threatened with extinction, which is a threat to biodiversity, and whether biodiversity loss happens in our country or in any other country, it is a threat to us all.

There are two other issues that have not been referred to much so far today. The first is corruption. The danger of corruption in some political systems around the world, particularly where there is an authoritarian regime, is intense. That is why it is so important that, under the Bribery Act 2010, we have particular responsibilities to ensure that British businesses trading elsewhere in the world are not able to engage in corrupt practices.

The second issue is displaced people, which is slightly different from the issue of forced labour. I remember visiting Colombia in 2018 with ABColombia, where I was struck by two things. First, as we flew over vast territories, I was struck by how much of the land had been taken for palm oil. That massive agribusiness had effectively displaced many millions of people who had lost their property thanks to the activities of militias and the FARC, and the battle between the two.

Similarly, when I went to El Porvenir and La Primavera, which are not far from Colombia’s border with Venezuela, it was striking how people found it very difficult to make a living when they had been deprived of large amounts of their land—they had effectively been living in a warzone for the best part of 20 years. That is why it was so important that, when Colombia was able to bring about peace with the FARC, it was very keen to bring forward the idea of land reform—that work has never really been completed—so people have access to land again and can make a living.

I have a few principles that influence how I look at all of this as we go through the process of our responsible business conduct review. First, I believe in a seamless garment. Again, I am sorry, but that is another biblical phrase. When Jesus was on the cross, lots were cast for his garment because it was seamless. I think it is important that we look at all these issues together, in the round. As I said, it is not just one issue.

This may seem a slightly flippant way of looking at it, but I was watching “Do they know it’s Christmas?” the other day on a Christmas compilation TV show. Of course, it is great because it is dealing with human rights around the world, the lack of clean drinking water and people starving from famine, but I was struck that only three women were asked to take part in the filming of the 1984 version. That could be a test for anybody, but it was the three members of Bananarama: Sara Dallin, Siobhan Fahey and Keren Woodward. That made the point to me that we need to look at all these issues in the round. Gender inequality, human rights issues, corruption and environmental concerns all need to be addressed in the round when we are looking at the whole of our supply chain.

Secondly, I commend the voluntary efforts. The shadow Minister, the hon. Member for Reigate (Rebecca Paul), referred to how the previous Government recognised them, which is true. I think we have all done that, and we have done it for many years. I doubt that there are many MPs who have not been to some kind of Fairtrade event and shown willing.

I pay tribute to Howies, a Welsh clothing company, because sometimes it is not easy to prosper in this world. It is great that the company is owned by its staff—I, too, am a member of the Co-op—and it says that its

“award-winning men’s and women’s clothing is ethically produced using organic, recycled or natural fabrics wherever possible… we want to be a company that does things differently to others—one that does things honestly, responsibly and quietly.”

I think an awful lot of UK consumers would love to be able to think that, whenever they go into a supermarket or any of the major chains, that would be what influences the company they are buying from, going all the way back to the beginning of the supply chain. In fact, there is evidence to suggest that companies are more successful when they adopt that kind of attitude. Consumers like it, so the companies can prosper. For that matter, it also gives a sense of purpose to everybody who works in the company.

Thirdly, as several Members have mentioned, we do not want a race to the bottom. My hon. Friend the Member for Glasgow North said that if we have worse standards or weaker requirements than elsewhere, the danger is that all the least-ethically sourced stuff comes to the UK. It would be a form of ethical dumping—similar to subsidy dumping or carbon dumping—into the UK. We are very keen that it should not happen, so of course we want to work alongside international comparators.

Fourthly, I am very keen for the UK to have requirements that are both effective and proportionate to the harm being dealt with. I have a question in my mind that was raised with me a couple of weeks ago, at a roundtable involving quite a few of the sorts of organisations we have talked about, including the anti-slavery body. I am not sure that having another annual report that is never read by anyone—including the person who wrote it, possibly—would be either effective or proportionate. Reports are costly for an organisation to produce, and they might not make the blindest bit of difference to whether a consumer or the company takes action on this.

Fifthly, notwithstanding that, section 54 of the Modern Slavery Act 2015 requires large organisations over a certain threshold to publish transparency in supply chain statements, and we provided new guidance on that in 2025. As has already been referred to by the Liberal Democrats, some of that is good, but there is a danger that it is just ticking a box, not driving forward change; and I am far more interested in driving forward change than I am in simply ticking boxes.

My sixth point is—there are not too many more, honestly—[Interruption.] I do not know why you are all laughing. We are engaged in a responsible business conduct review, and this debate is a very helpful part of that; it feeds into what we are hearing from businesses, because we want to make sure that what we eventually come forward with will be proportionate and effective. I was asked specifically whether we will also look at mandatory human rights and environmental due diligence reports. Yes, we are looking at how those would work, what would be most effective, and how they relate to requirements for multinational companies in other countries as well.

Seventhly, since we came to power, we have opened the Office for Responsible Business Conduct, which is a one-stop shop for industry. Again, I am interested in driving change, and sometimes businesses do not know where to turn. Smaller businesses might have no idea how to meet the law or best effect the kind of change we are all looking for. The Office for Responsible Business Conduct has a strong mandate there.

I have already referred to my hon. Friend the Member for Glasgow North and the hon. Member for Strangford—who of course is a friend to us all, as we meet him in so many debates. It was great, too, to hear from my hon. Friend the Member for Wolverhampton West (Warinder Juss) and from the hon. Member for North Herefordshire (Dr Chowns), and from the man from Del Monte—or rather, from my hon. Friend the Member for Ealing Central and Acton (Dr Huq); indeed, the one point she did not make was that it would be quite nice if there were a woman in charge. Maybe one day there will be a woman from Del Monte—although I note that Del Monte went into chapter 11 proceedings in July, so it is not clear what state it is in now. I also thank my hon. Friend the Member for Cumbernauld and Kirkintilloch (Katrina Murray).

Many of us have effectively given the same speech, because we all feel quite passionately that we want to get these issues right. I know that many people work in retail in the UK in a whole series of sectors; quite a few of our discussions have been about food and beverages or fashion, but the same is true for furniture and other sectors, too. We simply want to get this right, because our aim here in Government is to ensure that British businesses have an opportunity to export and import, and that this is always based on free and fair trade.

[Wera Hobhouse (in the Chair)]

I am enormously grateful to the Minister for leaving plenty of time for Martin Rhodes to wind up.

[Martin Rhodes]

First, I thank all those who have taken part in the debate. We have covered a lot of common ground but brought a lot of different perspectives to it.

A number of hon. Members, including the Minister and the shadow Minister, the hon. Member for Reigate (Rebecca Paul), and my hon. Friend the Member for Wolverhampton West (Warinder Juss), mentioned community campaigns, which are an important part of Fairtrade. Others, such as the hon. Member for North Herefordshire (Dr Chowns), have spoken about campaigns more generally,.

Other hon. Members have also raised business— my hon. Friend the Member for Cumbernauld and Kirkintilloch (Katrina Murray) talked about what can go wrong when good practice is not in place, while others reflected on where business practice goes right. My hon. Friend the Member for Ealing Central and Acton (Dr Huq) talked about what can happen when things are not done ethically and about the difference that the Fairtrade premium can make when they are.

Others emphasised the input of producers, including my hon. Friends the Members for Ealing Central and Acton and for Cumbernauld and Kirkintilloch. Those different perspectives show one of the great strengths of Fairtrade: it brings together consumers, producers, campaigners and businesses to look at what can be achieved through certification.

I very much welcome what the Minister said about global connectedness. That is what underpins all this: the recognition that we are much more connected through trade, culture, travel and everything else than we were previously. In some ways, that broadens people’s horizons, and makes them see and understand things that they never previously had the chance to think about or knew existed, and it can help uncover injustices and make action more possible. However, in other ways, we see trading activity that is based on entering into places to deliberately and repeatedly exploit them.

We had some discussion earlier about the aid budget. I, too, look forward to returning to 0.7% of GDP, but as I said, when the UK aid budget and aid budgets across the world have been cut, we must look much more at trade and other means to achieve the principles that we all want to achieve.

The Minister spoke about “free and fair” trade and discussed what that means with the hon. Member for Richmond Park (Sarah Olney), but it is important to reflect on what was said. We want free trade, but if we free up trade and tear down barriers, and yet the underlying system does not allow for fairness, we will get an unfair outcome. We therefore need to make sure that fairness is embedded, and Fairtrade has shown itself for a number of years to be a proven way of doing trade that is mutually beneficial to all in the supply chain.

I welcome the Minister setting out the principles behind the responsible business review, and I very much welcome the fact that human rights and environmental due diligence are part of that. The Minister made mention of the Bribery Act 2010, which provides a framework for legislation—

[Wera Hobhouse (in the Chair)]

Order. May I encourage the hon. Member to wind up?

[Martin Rhodes]

I am making my final point, Mrs Hobhouse.

[Wera Hobhouse (in the Chair)]

The normal order is two minutes to wind up.

[Martin Rhodes]

I have only 30 seconds left, and I am on my final point. I welcome the opportunity from including human rights and environmental due diligence, and the Bribery Act offers a framework for looking at how that might be done.

Question put and agreed to.

Resolved,

That this House has considered the role of Fairtrade certification in UK business and trade.