Local and regional authorities promoting fair trade.
Date: 2015-09-29
Institutions: European Committee of the Regions
Subjects: developing countries, fair trade, regional and local authorities, sustainable development, trade agreement, trade policy

EN

ISBN:978-92-895-0813-1 
DOI: 10.2863/626766

QG-02-15-339-EN-C

EUROPEAN UNION

Committee of the Regions

Local and regional authorities 
promoting fair trade

Rue Belliard/Belliardstraat, 101_1040 Bruxelles/Brussel _ BELGIQUE/BELGIË
Tel. +32 2/282 22 11_ Fax +32 2/282 23 25
www.cor.europa.eu

Foreword by CoR Rapporteur Barbara Duden.................................................(cid:17)................................i
Study: "Local and regional authorities in the EU support fair trade"............................................. 1
How local and regional authorities in the EU support fair trade: Examples.......................(cid:17)...........63

Foreword 

The Committee of the Regions is a long-standing supporter of Fair Trade. This was 
clearly  expressed  in  its  2010  opinion1  drafted  by  Kerstin  Kiessler  (PES/DE),  which 
recognized the role of Local and Regional Authorities “as important players in a Fair 
Trade  policy”  and  also  called  for  a  “European  Fair  Trade  Strategy”  to  be  launched 
and to be promoted and implemented at the local and regional, as well as at national 
and EU levels. Unfortunately, this call to action did not generate a concrete follow-up 
by  the  European  Institutions  as  the  CoR  had  hoped  for  and  therefore  we  have 
decided to renew our call. 

2015  being  a  landmark  year  for  development  at  EU  and  at  international  level,  the 
CoR sees it as an ideal opportunity to put this topic at the top of the EU agenda on 
sustainable  development  and  accepted  our  proposal  for  an  own-initiative  opinion 
highlighting the role of local and regional authorities.  

The  Lisbon  Treaty  grants  the  European  Union  an  exclusive  competence  on  trade. 
But  it  also  establishes  that,  in  its  relations  with  the  wider  world,  the  EU  should 
contribute to “the sustainable development of the Earth, solidarity and mutual respect 
among  peoples,  free  and  fair  trade,  eradication  of  poverty  and  the  protection  of 
human rights”2. Furthermore, the Union is required to take account of the objective of 
poverty reduction and eradication in all actions likely to affect developing countries. 

Trade has a central role to play in today’s economies: according to the World Trade 
Organization,  since  2000  world  trade  has  increased  almost  threefold.  Trade 
exchanges are of key importance for the EU for two main reasons: first of all, the EU 
is the world's largest trading block, and 90% of the global growth in the next 20 years 
is expected to be generated outside of Europe3. The EU's main policy priority in trade 
is  and  will  remain  to  seek  greater  liberalisation  of  markets  through  the  removal  of 
barriers  to  trade  and  granting  of  market  access  for  European  companies.  This  way 
trade can contribute to economic growth and job creation in the European Union.  

In an increasingly interconnected world, trade flows must also improve the living and 
working  conditions  of  people  both  in  Europe,  and  in  the  trading  partner  countries. 
Besides seeking open market access to third countries for European companies, the 
EU  does  encourage  its  trade  counterparts  to  respect  environmental  and  social 
standards. This is done by offering preferential EU market access to countries which 
ratify  and  implement  international  conventions  relating  to  human  and  labour  rights. 
Moreover, recent trade agreements signed by the EU include trade and sustainable 
development chapters. All these are positive steps in achieving a fairer trade system. 

However,  the  EU  should  not  turn  a  blind  eye  to  the  reality  in  which  most  of  the 
imported  or  processed  goods  are  produced  in  third  countries.  Long  and  complex 
supply  chains  often  fail  to  ensure  a  fair  income  for  those  at  the  beginning  of  the 
chain.  According  to  the  International  Fund  for  Agricultural  Development,  small 
producers  provide  over  80  per  cent  of  the  food  consumed  in  a  large  parts  of  the 
developing world. Despite their crucial role in feeding the world’s growing population, 
small-scale  farmers  remain  largely  marginalized  from  world  trade.  Additional 
mechanisms  should  be  put  in  place  to  allow  should  small  producers  in  the 
developing countries to reap the benefits of the current trading system.   

Fair Trade is an easy way in which the EU can reconcile its trade and sustainability 
concerns.  By  promoting  it,  the  EU  does  not  contradict  the  principles  of  subsidiarity 
and  proportionality  by  which  all  EU  legislative  and  policy  measures  have  to  abide. 
The Committee of the Regions' own-initiative opinion expresses indeed the need for 

1 Committee of the Regions Opinion "Contributing to sustainable development: the role of Fair Trade and non-governmental 
trade-related sustainability assurance schemes” COM (2009) 215 final. 10 February 2010 
2 Article 3.5 of the Treaty on the European Union 
3 Source: DG Trade website 

(cid:76)

a fully-fledged EU Fair Trade Strategy that mainstreams this concept across various 
EU policy areas: trade, development and sustainable consumption and production. 

The  promotion  of  Fair  Trade  principles  should  be  a  collective  objective  of  the 
European Union. That is why, to start with, the European Union should ensure that 
actors  having  the  potential  to  promote  Fair  Trade  (EU  citizens,  local  authorities, 
public  authorities,  companies,  consumers,  civil  society)  have  access  to  the 
information and the tools to do it, and that there are no major obstacles for them to 
support Fair Trade.  

There  are  already  many  examples  of  Fair  Trade  promotion  at  local  and  regional 
level: the Fair Trade Towns campaign gathers to date more than 1.500 communities 
in Europe. In some countries the concept of Fair Trade provinces and regions is also 
becoming  very  popular.  Both  Wales  and  Scotland  in  the  United  Kingdom  have 
declared  themselves  Fair  Trade  nations.  In  my  country  Germany,  many  of  these 
good practices are encouraged by the German Fair Trade Capital award. That is why 
we  think  the  EU  should  follow  this  initiative  and  launch  a  “European  Fair  Trade 
Capital” scheme, similar to and building on already existing schemes that would give 
incentives  to  European  municipalities  to  carry  forward  their  commitments  in  Fair 
Trade. It would not only reward the various modalities of Fair Trade support by cities 
in Europe, it would also help to disseminate the good examples to encourage other 
cities to take action in this area. This Award should be part of a far-reaching proposal 
for the uptake of Fair Trade by public authorities, companies and consumers in the 
EU.  In this way, citizens both in their role as voters and as economic actors can be 
made  aware  and  make  informed  choices  if  they  want  to  support  fair  trading 
principles. 

The existing local and regional support to Fair Trade so far depends, however, very 
much on the national context and the policy environment in which these authorities 
operate. This situation has been examined in the study commissioned by the CIVEX 
Commission and the main findings of which you will find in this publication. Based on 
comparing  different  national  situations  and  identifying  some  common  elements  and 
problems, the study includes policy recommendations at EU, Member State and local 
and regional levels. The study shows that in order to promote Fair Trade effectively 
at EU level and thus have an effect also on the other levels of governance, a mix of 
regulatory and policy interventions across the EU landscape are needed. 

In  the  above  mentioned  own  initiative  opinion  of  the  Committee  of  the  Regions, 
recommendations are made as to how the regional and local governments in the EU 
can promote Fair Trade in their respective territories. This can be done by supporting 
awareness  raising  among  the  public  and  the  economic  actors,  through  the 
procurement  of  Fair  Trade  products,  but  also  by  encouraging  the  creation  of  Fair 
Trade  businesses  and  networks.  In  particular,  the  exchange  of  good  practices  and 
the  creation  of  learning  communities  in  this  filed  should  be  encouraged.  The 
European  Portal  of  Decentralised  Cooperation4  offers  a  prime  tool  to  this  end.  This 
publication includes a collection of practices from different local and regional entities 
in  different  fields  such  as  awareness  raising,  public  procurement  and  partnerships 
with  the  South.  I  am  very  happy  about  the  wide  variety  of  good  ideas  represented, 
and I would like to thank all the contributors as well as those colleagues who have 
contributed to this collection, because it does show that local and regional authorities 
all  over  the  EU  are  active  and  committed  in  working  towards  a  fairer  global  trade 
system. 

As  mentioned  earlier,  the  European  Year  for  Development  2015  provides  the  right 
opportunity to push for an ambitious approach to Fair Trade, using it as a benchmark 
of  greater  coherence  of  all  EU  policies.  In  addition,  the  future  United  Nations 
Sustainable Development Goals to replace the Millennium Development Goals after 
2015 must recognise the role of local authorities as "enablers" in development policy, 

4

www.cor.europa.eu/portal  

(cid:76)(cid:76)

and the EU and its active local and regional levels should be at the forefront of this 
movement.  In  this  context  it  is  important  to  note  that  the  recent  European 
Commission  Communication  on  the  post-2015  development  framework  identifies 
trade  as  a  key  tool  to  achieve  the  Sustainable  Development  Goals,  besides 
recognizing the contribution of Fair Trade schemes to economic, environmental and 
social benefits. We need to build on that and hold the other EU institutions, but also 
our  Member  States  to  their  words,  by  using  the  vast  stock  of  experience  which  we 
have built up in our towns, cities and regions. 

In conclusion: the implementation of the new development framework at European, 
national,  regional  and  local  level  will  provide  us  with  an  excellent  framework  and 
challenge to pursue an ambitious stance on Fair Trade driven by the EU. 

I  look  forward  to  working  with  and  through  the  Committee  of  the  Regions,  its 
members and its networks, but also with all of you for the follow-up of this important 
topic by the EU institutions.  

Barbara Duden 

Vice-President of Parliament of the Free and Hanseatic City of Hamburg, Germany. 

Rapporteur  of  the  Committee  of  the  Regions  “Local  and  regional  support  for  Fair 
Trade in Europe” 2015 Opinion 

(cid:76)(cid:76)(cid:76)

Local and regional authorities 
promoting fair trade 

This report was written by Julius Sen, Elitsa Garnizova and Alexander 
Negencov (LSE Enterprise).
It does not represent the official views of the Committee of the Regions.

More information on the European Union and the Committee of the Regions is 
available  online  at  http://www.europa.eu  and  http://www.cor.europa.eu
respectively.

Catalogue number: QG-02-15-339-EN-C 
ISBN: 978-92-895-0813-1 
DOI: 10.2863/626766 

© European Union, March 2015
Partial  reproduction  is  permitted,  provided  that  the  source  is  explicitly 
mentioned

Table of Contents 

Introduction ................................................................................................................................ 1 
The challenge ......................................................................................................................... 1 
Approach and methodology ................................................................................................... 2 
Overall findings ...................................................................................................................... 4 
The policy context at different levels: identifying policy instruments and modalities .......... 6 
1. Existing framework to regulate fair trade.............................................................................. 7 
1.1  Recent developments in the EU-level framework.......................................................... 7 
1.2  National, regional and local approaches......................................................................... 9 
1.3  Low or no awareness raising and recognition (Bulgaria, Romania, Greece, Portugal,

Latvia, Lithuania, Estonia) ........................................................................................... 10
1.4  Medium to low awareness raising and recognition (Poland and Czech Republic) ...... 11 
1.5  Medium to high awareness raising and recognition (France, Italy) ............................. 13 
1.5.1  France ................................................................................................................... 13 
Italy....................................................................................................................... 15 
1.5.2 

1.6  High awareness raising and recognition (Germany, Belgium, the Netherlands, 

Denmark and the UK) .................................................................................................. 16 
1.6.1  Germany ............................................................................................................... 16 
1.6.2  The Netherlands ................................................................................................... 18 
1.6.3  Belgium ................................................................................................................ 20 
1.6.4  Denmark ............................................................................................................... 21 
1.6.5  The United Kingdom............................................................................................ 23 
2. Sum-up on modalities of support ........................................................................................ 27 
3. Good practices ..................................................................................................................... 29 
3.1.1  The 'Fair Trade fair' by the city of Dortmund ...................................................... 29 
3.1.2  South West England ............................................................................................. 29 
3.1.3  Hannover – Poznan .............................................................................................. 29 
3.1.4  QuattroPole........................................................................................................... 30 
4. Main barriers ....................................................................................................................... 31 
4.1  Supply side ................................................................................................................... 32 
4.2  Demand side ................................................................................................................. 34 
5. Policy recommendations ..................................................................................................... 37 
5.1  EU-level policy recommendations ............................................................................... 38 
5.1.1  Clarity on the level of ambition............................................................................ 38 
5.1.2  Making the economic and business case.............................................................. 38 
5.1.3 
Improving policy coherence................................................................................. 39 
5.1.4  Reconciling regulatory and policy priorities........................................................ 39 
5.1.5  A gap analysis of the policy structure .................................................................. 40 
5.1.6  Monitoring, information and data flows .............................................................. 41 
5.2  National-level recommendations.................................................................................. 42 
5.3  LRA level recommendations........................................................................................ 44 
5.4  Changing the narrative ................................................................................................. 45 
5.5  EU-wide data collection and indicators........................................................................ 46 

Annex 1. Legislative and non-legislative documents in support of fair trade in EU Member 

States ........................................................................................................................ 47 
Annex 2. Fair Trade Towns in Europe ..................................................................................... 57 
Annex 3. Interviewees and written feedback ........................................................................... 59 
Annex 4. Questions asked to LRAs and representatives .......................................................... 61 
Annex 5. Estimated retail sales by country .............................................................................. 62 

Introduction

The challenge 

Currently there is no EU-wide definition of fair trade but European institutions 
have  converged  over  the  definition  of  the  Charter  of  Fair  Trade  Principles 
(2009) that: 

'Fair Trade is a trading partnership, based on dialogue, transparency and 
respect,  that  seeks  greater  equity  in  international  trade.  It  contributes  to 
sustainable  development  by  offering  better  trading  conditions  to,  and 
securing the rights of, marginalised producers and workers – especially in
the  South.  Fair  Trade  Organisations,  backed  by  consumers,  are  engaged 
actively  in  supporting  producers,  awareness  raising  and  in  campaigning 
for changes in the rules and practice of conventional international trade.'1

The  academic  and  policy  literature  describes  two  complementary  channels  for 
fair  trade  marketing  in  EU  Member  States  (MS):  the  'integrated-supply  route' 
under the World Fair Trade Organisation (WFTO) and the ‘product-certification
route’ based on the Fairtrade International (FLO).2 Some examples based on the
former  route  include  the  activities  of  the  Fédération  Artisans  du  Monde
(FAM)’s  member 
in  France  and
Ctm Altomercato’s distribution channels in Italy; while the latter has been seen
as  most  successful  in  the  UK  where  major  supermarket  chains  have  switched 
'entire product lines to Fairtrade labelling'4. Fostering market growth in fair trade 
products and raising awareness has been achieved through diverse paths where 
one  of  the  most  widespread  initiatives,  involving  mainly  local,  but  also  some 
regional  authorities  remains  the  'Fair  Trade  Towns'  campaign,  started  in 
Garstang in North West England.5  

local  associations  and  worldshops3 

Despite the differences of implementation across  countries, fair trade has three 
basic components: 

1 World  Fair  Trade  Organization  and  Fairtrade  Labelling Organizations  International,  2009.  A  Charter  of  Fair 
Trade Principles, January 2009,
http://www.fairtrade.net/fileadmin/user_upload/content/2009/about_us/documents/Fair_Trade_Charter.pdf
2 Cremona,  Marise  and  Duran,  Gracia  Marin  (2013).  Fair  Trade  in  the  European  Union:  Regulatory  and 
institutional  aspects,  in:  Granville,  Brigitte  and  Dine,  Janet  (Eds.). The  Processes  and  Practices  of  Fair  Trade: 
Trust, Ethics and Governance, Routledge, page 123. 
3 Worldshops, world shops or Fair Trade Shops are specialised retail outlets offering and promoting Fair Trade 
products. Further information on worldshops, http://www.suedwind-agentur.at/start.asp?ID=12424&b=292
4 Ibid 2 at 146. 
5 For definition, see Fair Trade Towns http://www.fairtradetowns.org/about/what-is-a-fairtrade-town/; in brief it 
is 'any community in which people and organisations use their everyday choices to increase sales of Fair Trade 
products and bring about positive change for farmers and workers in developing countries'. 

1

a. Better  terms  of  trade  for  the  poorest  within  supply  and  distribution
networks, and especially for producers of primary products in developing
countries;

b. Environmental sustainability;
c. Improved social standards and social equity.

Recently  fair  trade  has  become  more  mainstream  in  how  some  products  are 
produced and marketed in the EU and a number of effective fair trade strategies 
and  policies  have  been  pursued  at  national  and  sub-national  level.  Existing 
documents  guiding  fair  trade  on  European  level  include  the  2009  European 
Commission Communication 'Contributing to sustainable development: the role 
of  Fair  Trade  and  non-governmental  trade-related  sustainability  assurance 
schemes' recognised  the  presence  of  fair  trade  and  the  variety  of  approaches.6
This was accompanied by the Committee of the Regions’ opinion which called 
on  the  need  to  adopt  a  European  Strategy  and  action  programme  for  fair  trade 
for Local and Regional Authorities (LRAs).7 The Communication also recalled 
developments  since  1999  when  it  first  presented  a  report  detailing  the 
development of the sector, reviewed in the following section.  

Since  2009  the  fair  trade  agenda  on  the  EU  level  has  temporarily  lost 
momentum at the very moment that it had gained public, political and corporate 
credibility,  and  at  a  time  when  it  can  play  a  significant  role  in  rebuilding  the 
European  economy  and  generating  employment,  both  within  the  EU  and  in 
developing countries. Part of the exercise undertaken here was to identify what 
instruments  to  put  in  place  at  EU  and  MS  level  in  order  to  unlock  the  full 
potential of LRAs in promoting fair trade.  

Approach and methodology 

The broad approach followed in this project has endeavoured to make a start in 
this respect, by taking stock of the experiences of different LRAs of the EU, and 
then  identifying  how  some  of  the  core  lessons  of  this  varied  and  rich  set  of 
experiences could be applied more widely and systematically across the EU. In 
short,  we  have  tried  to  work  out  how  the  system  could  be  scaled  up  to  an  EU 
level, drawing on what may broadly be called best practice. An evaluation of the 
relative  effectiveness  of  these  various  strategies  was  not  possible  within  the 
framework of this exercise, so we concentrated on trying to identify the various 
approaches adopted, which could be considered while exploring next steps. We 
have also considered these proposals with reference to other significant policies 
of  the  EU,  namely,  trade,  competition,  commercial,  agricultural  and  other 

6 COM (2009) 215 final. 
7 Opinion of the Committee of the Regions of 10 February 2010 on  Contributing to Sustainable Development: 
the Role of Fair Trade and Non-governmental Trade-related Sustainability Assurance Schemes (CdR 214/2009). 

2

relevant  policies,  all  of  which  need  to  be  reconciled  to  the  fair  trade  agenda. 
Material,  information  and  references  relating  to  the  experiences  of  the  LRAs 
was provided by the European Committee of the Regions (CoR), and these were 
supplemented by interviews and literature review. While this process generated 
a  lot  of  material,  demonstrating  a  complex  mix  of  policy  strategies  and  policy 
configurations, time and other constraints obviously limited the depth and detail 
of this exercise. Our observations with reference to these issues are summarised 
in the section on policy recommendations. 

In terms of the policy configurations, we start from a country classification due 
to  the  little  available  data  on  the  sub-national  level  (see  recommendations).  In 
the process of grouping the countries, the note makes a differentiation between 
financial and political support from the different levels of governance, the role 
of LRAs, and consumer awareness and sales of fair trade certified products. The 
criteria  used  to  loosely  classify  the  countries  reviewed  are  included  below.8
These criteria are used as guidance and the final classification has been based on 
discussions with LRAs and other stakeholders.  

- Estimated  retail  sales  by  country  (latest  available  data,  Fairtrade

Foundation reports, see Annex 5).

- Number  of  Fair  Trade  Towns  (latest  available  data,  Fair  Trade  Towns

reporting, see Annex 2).

- Degree  of  development  of  fair  trade  market  and  structures  (literature
review  of  policy  and  academic  literature,  collecting  information  on
number of actors, activities and documents).

- Legislative measures focusing explicitly on fair trade (literature review of

selected legislative texts; interviews).

- Presence  of  other  activities  dedicated  to  fair  trade  (literature  review  of

policy and academic literature; interviews).

- Development  of  fair  trade  policies  on  the  sub-national  level  (literature

review of policy and academic literature and interviews).

The  policy  challenge  in  the  context  of  the  EU  and  its  Member  States  is  to 
identify,  evaluate  and  implement the appropriate mix of regulatory, policy and 
market based approaches that work in mutual support of fair trade objectives. To 
be successful and accepted, this mix would have to simultaneously demonstrate 
that the overall package of measures succeeds in the following evaluation: 

- That  WTO  principles  and  rules  relating  to  the  EU’s  internal  market

principles and competition policy have been taken into account;

8 Due to the scope of the study, the expert team has not been able to be exhaustive in the review of all documents 
and has based its conclusion on those indicated in the study.

3

- That the options selected represent the most cost effective of the various

alternatives;

- That the principle of subsidiarity has been respected;
- That the objectives of development in the exporting countries with respect
to the three pillars of sustainable development are fully met, namely:

o Economic viability
o Social equity
o Environmental sustainability.

In this context the EU should reconcile its sustainability and trade liberalisation 
objectives  by  anticipating  and  addressing  the  stakeholders’  concerns  in  an 
effective manner. 

Overall findings 

The  broader  macro-economic  policy  context  within  which  all  European  states 
have to operate for the time being is going to remain difficult. The availability of 
resources  for  any  major  investment  on  the  LRA  level  will  continue  to  be 
problematic.  At  the  same  time,  the  commitment  to  rebuild  Europe’s  economic 
model  to  reflect  policy  coherence  and  to  align  internal  and  external  objectives 
provides  a  major  opportunity  to  promote  fair  trade,  sustainability  and  ethical 
objectives, but needs to be considered in the light of constraints on resources.  

Moreover,  there  is  a  question  of  whether  an  integrated  fair  trade  agenda  that 
currently links LRAs with developing countries will succeed in turning fair trade 
(with sustainability and ethical concerns) into a mainstream  economic  activity. 
If  it  is  contemplated  that  this  agenda  will  ultimately  become  an  EU-wide 
agenda, then this needs to be made clear at the outset. 

Defining the level of ambition is therefore of paramount importance. As part of 
the process of determining the level of ambition, it would be necessary to back 
this  with  a  strong  economic  and  business  case.  That  is:  given  the  right  policy 
and regulatory framework, it would be possible to assure high quality products 
at competitive prices, fully compatible with environmental and ethical concerns, 
while also ensuring fair returns to producers in developing countries. 

The  second  major  finding  is  that  further  clarity  regarding  the  objectives, 
principles  and  procedures  relating  to  the  fair  trade  agenda,  especially  where 
environmental and social issues are involved, needs to be defined and elaborated 
with  greater  precision.  This  would  invariably  be  an  ongoing  process  as  the 
policy  framework  evolves,  but  it  needs  attention  at  every  stage  of  policy 
implementation. 

4

The third major finding is that this contemplated policy framework needs to be 
reconciled  with  existing  and  settled  policy  areas  (agriculture,  trade  policy, 
commercial  policy,  neighbourhood  policy),  and  must  not  find  itself  in  conflict 
with  regulatory  provisions  arising  out of  trade  agreements,  competition  policy, 
and state aid rules. Inconsistencies would need to be ironed out and resolved as a 
matter  of  priority,  and  LRAs  in  particular  would  need  access  to  legal  and 
regulatory advice.  

The  fourth  major  finding  is  with  respect  to  information,  monitoring  and 
evaluation  requirements.  It  goes  without  saying  that  information  flows  help 
improve  decision  making  and  project  implementation,  while  consultation 
procedures  are  similarly  enriched  by  higher  quality  data  and  information. 
Effective  comparative  studies, 
together  with  other  sources  of  credible 
information, would form the basis for the quest for better policy and regulatory 
practice,  assessments  of  what  works  and  what  does  not  (good  practice),  and 
awareness raising. For the business community, it would provide valuable inputs 
into  designing  business  models,  and  where  consumers  are  concerned,  with 
information  about  trends,  tastes,  and  interests.  Improvements  in  EU-level 
information  generation,  monitoring  and  evaluation  are  therefore  necessary  and 
justified.  

The  fifth  major  finding  concerns  national  governments  and  their  role  in  this 
overall  arrangement.  By  and  large,  they  have  the  resources  and  capacity  to 
ensure  that  fair  trade,  environmental,  ethical  and  developmental  objectives  are 
met. If there is clarity about the overall structure of the agenda flowing from the 
EU,  then  national  governments  can  address  many  of  the  specific  concerns  of 
LRAs, consumers, and businesses, through other policy tools and mechanisms. 
Tax  regimes,  subsidies,  regulations,  infrastructure  development  and  capacity 
building can all be addressed more effectively by national governments, and the 
section on policy recommendations elaborates this in further detail. 

In  terms  of  structures  and  models,  this  study  found  that  the  EU  level  is  in  the 
best  position  to  reconcile  top-down  and  bottom-up  approaches,  essentially 
through  an  approach  that  looks  at  complementarity.  This  came  through  fairly 
clearly  from  the  literature  review  and  interviews,  where  the  promotion  of  a 
coordinated  approach  to  fair  trade  by  EU  actors  and  across  EU  policy  areas  is 
seen as a major advantage.  

An EU-coordinated approach can play a major role in promoting the fair trade 
agenda  in  two  areas  in  particular,  and  these  relate  to  labelling  and  public 
procurement.  Both  these  areas  require  significant  legal  capacity  and  skills, 
together with detailed knowledge of the technicalities involved and the various 
international  commitments  that  may  apply.  A  common  labelling  regime, 

5

previously put forward as an option for regulatory action on the European level9,
remains an option to be further explored (see Policy recommendations, page 31). 

The final major recommendation relates to LRAs and what they can do. Taking 
into account the variable capacity, experience and interest, in order for LRAs to 
be able to support fair trade a whole range of national and EU policy measures 
have to be put in place. Committing themselves to these priorities, and devoting 
resources to building internal capacity, would be the best way forward.  

There are at the same time, a wide array of sensitive local issues that they would 
need  to  deal  with  in  the  process.  Ranging  from  extensive  existing  obligations 
and  limited  resources,  to  a  limited  understanding  of  the  wider  benefits  of  fair 
trade,  are  just  examples  of  the  challenges  they  face.  By  and  large,  stronger 
clarity at the EU level can play a role in guiding and advising national and sub-
national authorities of the advantages and difficulties involved in the process. 

The  policy  context  at  different  levels:  identifying  policy 
instruments and modalities 

In the domestic policy context, governments traditionally adopt a multiplicity of 
approaches that have to operate within various national and EU-level rules and 
frameworks. These include: 

- Procurement policies
- Tax and subsidy incentives
- Credit and financing facilities
- Marketing support
- National labelling schemes
- Product standards, etc.

The  use  of  one  or  more  of  these  policy  instruments  in  an  appropriate 
combination  so  as  to  achieve  cost-effective  and  pro-competitive  solutions  is 
complicated by the decentralised regulatory power in many countries. Aligning 
local  endeavour  in  one  part  of  the  system  with  global  trade  rules,  commercial 
structures,  with  the  organisation  of  producer  and  processing  markets  in  third 
countries, will be challenging.  

9 Ibid. 2 at 123.

6

1. Existing  framework  to  regulate  fair

trade

1.1 Recent developments in the EU-level framework 

One  of  the  main  reasons  for  this  increased  interest  is  that  fair  trade  has 
continued  to  grow  in  the  number  of  farmers  and  workers  involved  and  the 
volumes  of  products  sold  on  fair  trade  terms.10  This  tendency  has  also  been 
paralleled  by  a  general  call  for  recognition  of  LRAs  as  central  actors  in 
development policy and for their widened engagement in the achievement of fair 
and  balanced  growth  both  across  the  EU and  globally.  In  this  regard,  essential 
input  has  been  provided  by  the  Commission  Communication  on  Local 
Authorities: Actors for Development11 and the opinion of the CoR was adopted 
in April 2009.12 The role of local and regional authorities as strategic partners in 
EU  external  policies  has  been  widely  discussed  in  light  of  increasing  the 
effectiveness, coherence and accountability of the EU. The position of LRAs has 
further been recognised in communications by the European Commission, such 
as  the  recently  published  one  Empowering  Local  Authorities  in  partner 
countries for enhanced governance and more effective development outcomes.13
The  communication  reiterates  the  vast  potential  of  the  cooperation  between 
European  LRAs  and  developing  countries  as  the  means  to  strengthen 
decentralisation  and 
inter  alia  peer-to-peer 
knowledge-sharing and transferring experience.  

local  governance 

through 

With  regard  to  fair  trade  and  LRAs  in  particular,  we  look  at  the  progress 
achieved since the previous opinion of the CoR.14 The CoR’s opinion called for 
'a common European Fair Trade Strategy for Local and Regional Authorities to 
be drafted, accompanied by an action programme that fulfils environmental and 
social  criteria,  in  order  to  support  fair  trade  and  environmental  and  social 
procurement.'15 This has not been achieved, but the EC has addressed the other 
key  recommendations,  including  attempts  to  clarify  the  legal  context  of 
sustainable public procurement.  

10 Fairtrade  International  (2013).  Monitoring  the  Scope  and  Benefits  of  Fairtrade,  Fifth  Edition  2013. 
http://www.fairtrade.net/fileadmin/user_upload/content/2009/resources/2013-Fairtrade-Monitoring-Scope-
Benefits_web.pdf. 
11 COM(2008) 626 final. 
12 Opinion  of  the  Committee  of  the  Regions  adopted  on  21-22  April  2009: Local  authorities:  actors  for 
development (CdR 312/2008)
13 Communication from the Commission to the European Parliament, the Council, the European Economic and 
Social  Committee  and  the  Committee  of  the  Regions:  Empowering  Local  Authorities  in  partner  countries  for 
enhanced governance and more effective development outcomes COM(2013) 280 final  
14 Ibid 7. 
15 Idem.

7

For a decade the legal basis for public procurement in the EU was provided by 
Directives  2004/18/EC,  until  the  new  EU  Public  Procurement  Directive  was 
adopted  in  2014.16  The  Directive  represents  the  EU’s  guidance  on  how  to 
include fair trade criteria in tenders, highlighting the role of LRAs in promoting 
the  purchase  of  fair  trade  products,  or  other  ecological,  ethical  or  solidarity 
approaches.17  In  the  new  Directive,  the  general  principles  of  procurement 
(Article  18)  recognise  the  role  of  the  Member  States  in  'taking  appropriate 
measures  to  ensure  that  in  the  performance  of  public  contracts  economic 
operators  comply  with  applicable  obligations  in  the  fields  of  environmental, 
social  and  labour  law  established  by  Union  law,  national  law,  collective 
agreements  or  by  the  international  environmental,  social  and  labour  law 
provisions'18.

In particular, the award criteria or contract performance conditions can 'relate to 
the supply or utilisation of fair trade products in the course of the performance 
of the contract to be awarded' which is in accordance with the case-law of the 
Court  of  Justice  of  the  EU.19  The  adoption  of  the  new  Directive  could  be 
considered as an example of the consistent efforts of the EU to integrate social 
and environmental criteria into the procurement procedures. The admissibility of 
Fair  Trade  criteria  –  alongside  other  social  considerations  –  in  public
procurement  was  already  contemplated  in  Buying  Social  –  A  Guide  to  Taking
Account  of  Social  Considerations  in  Public  Procurement20,  issued  by  the 
Commission in 2011.  

The  Commission  published  the  Communication  on  Trade,  growth  and 
development  in  2012,  aiming  'to  further  facilitate  fair  and  ethical  purchasing 
choices by public authorities in Europe'.21 In order to increase synergies between 
trade and development policies, the Commission states in the paper that the EU 
has  to  'ensure  that  economic  growth  and  development  go  hand  in  hand  with 
social  justice,  including  core  labour  standards,  and  sustainable  environmental 

16 Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of 
procedures  for  the  award  of  public  works  contracts,  public  supply  contracts  and  public  service  contracts. 
Directive 2014/24/EU, as prescribed in the Directive, the Member States should transpose it into national law by 
April 2016. 
17 Commerce équitable et achat public: Directive 2014/24/UE, http://www.jeconsommeequitable.fr/je-
minforme/actualites/387-une-nouvelle-loi-etend-le-champ-du-commerce-equitable-aux-relations-nord-nord.html. 
18 Article 18, Principles of Procurement, Chapter II – General Rules
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0024&from=EN;  the  Directive  also 
says that 'contracting authorities should be allowed to use award criteria or contract performance conditions in 
order to better integrate social and environmental considerations in the procurement procedures'. (Extract 97) 
19 See Judgement (10 May 2012) of the Court of Justice of the European Union in the 'North Holland' case ruling 
(Commission vs Netherlands C/368/10), http://curia.europa.eu/juris/documents.jsf?num=C-368/10.
20 EC News, 'Buying social', http://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=978.
21 Communication from the Commission to the European Parliament, the Council and the European Economic 
and  Social  Committee  –  'Trade,  growth  and  development  –  Tailoring  trade  and  investment  policy  for  those
countries most in need', SEC (2012) 87 final, pages 13-14.

8

practices  including  through  external  policies'.22  That  could  be  achieved  by 
'strengthening  EU  support  for  developing  country  producers  taking  part  in 
sustainable trade schemes by  further mobilising cooperation, including Aid for 
Trade (AfT) measures, improve monitoring of related activities and continue to 
encourage our partner countries to promote fair and ethical trade.'23

On the EU level, financial support to the link between LRAs and development 
cooperation  has  been  provided  through  the  Development  Education  and 
Awareness Raising (DEAR) channelled through the thematic programme Non-
State Actors and Local Authorities in Development (the NSA-LA programme). 
There is more on DEAR below in the section 'supply side' (page 28).24  

1.2 National, regional and local approaches 

In comparison to the focus on public procurement at European level, and since 
the  CoR’s  opinion  on  fair  trade,  local  and  regional  administrations  have
increasingly  been  involved  in  the  development  and  implementation  of  policies 
targeting  fair  trade  and  sustainability  issues.  Despite  the  progress  made,  wide 
differences persist across the EU. These can be grouped according to the level of 
involvement of the national, regional and local level in fair trade promotion; the 
scope of involvement across possible initiatives: public procurement, subsidies, 
awareness  raising,  educational  activities,  developing  new  partnerships  and 
organising  events;  and  the  extent  to  which  existing  policies  have  been 
implemented  and  monitored.  The  approaches  also  differ  in  the  dynamics 
between the multiple levels of governance, the evolution of the local economic 
systems  and  the  extent  of  the  actors  involved  in  shaping  and  development 
initiatives.  Finally,  the  approaches  vary  in  the  extent  to  which  they  are 
transferable  to  other  places  and  timing,  both  in  advanced  and  developing  and 
emerging economies.  

Taking  this  into  consideration,  very  different  configurations  exist  where  four 
groups have been defined as a result of the criteria identified in the section on 
approach and methodology (page 3):  

22 Idem. 
23 Idem.  
24 DG International Cooperation and Development. Development education and awareness raising, 
https://ec.europa.eu/europeaid/sectors/human-rights-and-governance/development-education-and-awareness-
raising_en  

9

- High awareness raising and recognition: countries where fair trade policy
and  practice  have  high  levels  of  recognition,  both  market-based  and
policy-oriented/ regulatory approaches – e.g. the UK, Germany, Belgium
(especially Flanders), Austria, Sweden, the Netherlands, Ireland25;

- Medium to high awareness raising and recognition: countries where actors
involved in fair trade are very engaged but policy and practice is still not
mainstream – e.g. France, Italy, Spain;

- Medium  to  low  awareness  raising  and  recognition:  countries  where  fair
trade activities are picking up speed after a slow start – e.g. Poland, Czech
Republic, Slovenia, Estonia;

- Low or no awareness raising and recognition: countries where fair trade is
still  under-recognised  and  practices  both  by  grassroots  and  LRAs  are
underdeveloped – e.g. Bulgaria, Romania, Portugal, Latvia and Lithuania.

In  addition  to  this  division,  examples  of  existing  approaches  fall  within  the 
following  broad  groups:  a  top-down  approach  driven  from  the  national  level’s 
explicit  support  for  fair  trade  and  sustainable  development  (e.g.  France, 
Sweden); LRA-driven approaches where the regional and local authorities have 
taken the initiative for fair trade engagement (Belgium, Italy); grassroots driven 
approaches  (UK)  and  lastly,  mixed  approaches  (Germany,  the  Netherlands). 
The difficulty with this division lies in the allocation of the Central and Eastern 
Member States as well as some of the Southern countries to such classification. 
The  reasons  for  this  have  been  a  very  informal  mode  of  development  of  fair 
trade  activities  across  the  national  and  sub-national  levels  and  also  the  limited 
number of activities overall.26  

1.3 Low  or  no  awareness  raising  and  recognition 
(Bulgaria,  Romania,  Greece,  Portugal,  Latvia, 
Lithuania, Estonia) 

Despite overall developments on the EU level, low or no awareness raising and 
recognition exists in a number of the EU Member States. Among those with low 
awareness raising, there is a further division: countries with reported sales of fair 
trade  products  and  those  with  negligible  sales  of  such  products.  In  the  former 
group fall Estonia, Latvia and Lithuania where fair trade product sales have been 
driven  by  'Finnish  FLO  quality  label  organisations  [...]  which  support  start-up
campaigns  and  issues  licenses  for  the  three  countries'.27  They  are  still  in  the 
process of building their own processes and organisational structures in support 

25 See Annex 2 for the ranking of Fair Trade Towns per country. 
26 Interviews 1 and 4.
27 CTB - Trade for Development Centre http://issuu.com/tradefordevelopmentcentre/docs/oost-europa_-
_english_version, page 4.

10

of fair trade and there is little to report in terms of approaches, 'at present there 
are  no  local  companies  yet  with  labelled  products  on  the  market,  just 
international retailers.'28 Most recently, Hiiu District of Estonia became the first 
Fair  Trade  Town  in  the  country  on  Thursday  23  October  201429.  The  second 
group  of  slow  movers,  countries  where  fair  trade  is  still  under-recognised  and 
practices  both  by  grassroots  and  LRAs  are  underdeveloped,  includes  Bulgaria, 
Romania  and  to  an  extent  Greece.  Previous  detailed  studies  of  EU  Member 
States also highlight the very slow pace of development of fair trade markets.30
Some of the barriers are reviewed in subsequent chapters. There are very little 
data on fair trade markets and activities on a sub-national level.  

1.4 Medium  to  low  awareness  raising  and  recognition 

(Poland and Czech Republic) 

In the group of those countries who are picking up speed in the development of 
fair trade activity, particularly in Poland, on the sub-national level this has been 
driven  primarily  by  a  'community  of  enthusiastic  people'  or  even  individual 
initiatives.31 The reasons for this type of formation process have been discussed 
previously  from  a  historical  perspective,  highlighting  the  lack  of  freedom  of 
associations  and  networks  of  non-governmental  organisations  as  well  as  little 
history of grassroots creation during the Communist period.32  

In the past years the Czech Republic has been termed the 'island in Central and 
Eastern  Europe'  due  to  the  fast  pace  of  development  of  various  initiatives,  the 
achievement  of  Fair  Trade  Town  status  and  the  ongoing  activities  and 
partnerships.33 Overall very little research has been done to date on the situation 
in Central and Eastern Europe with regard to local and regional authorities and 
even  though  there  has  been  some  progress  with  joint  activities,  they  have  not 
been documented in detail.34  

Further  to  the  interviews  conducted  and  the  literature  search,  it  could  be  seen 
that there is a link between the levels of fair trade and the overall development 
assistance  a  country  provides  to  developing  countries  and  commitment  to 

28 Idem.  
29  7th  International  Fair  Trade  Towns  Newsletter,  23  October  2014.  http://www.fairtradetowns.org/news/7th-
international-fair-trade-towns-newsletter/
30 Ibid 2.  
31 Interview 4.  
32 Interview 4.  
33 Interview 4 
34 CTB - Trade for Development Centre http://issuu.com/tradefordevelopmentcentre/docs/oost-europa_-
_english_version

11

development  goals.35  In  Poland,  the  Czech  Republic  and  to  an  extent  in 
Romania, support for economic, social and environmental issues is enshrined in 
legislative  and  non-legislative  documents  on  development  cooperation,  and  if 
existing,  strategic  documents  on  sustainable  development  or  the  Europe 2020-
inspired National Reform Programmes. This process goes hand-in-hand with the 
recognition of Poland and the Czech Republic as emerging donor countries by 
the  OECD  Development  Assistance  Committee  (DAC)  where  development 
cooperation  has  emerged  as  a  part  of  their  foreign  policies.36  The  Polish 
development  cooperation  agenda  has  been  driven  by  a  number  of  strategic 
documents,  including  Multiannual  Development  Cooperation  Programme  for 
2012 –  201537  and  National  Reform  Program  Europe  2020  of  Poland  and
especially  the  dimension  on  Corporate  Social  Responsibility38.  Similarly  the 
Czech  Republic’s  policy  is  guided  by  the  Development  Cooperation  Strategy
2010–2017,  where  the  focus  is  placed  on  strengthening  the  systems  of  partner
countries  and  increasing  the  capacity  of  their  development  participants  so  that 
they  can  play  a  more  active  role  in  formulating  and  implementing  the 
development  policies  of  their  countries.  To  this  end  it  established  a  system  of 
cooperation  with  NGOs,  including  the  provision  of  funding  for  development 
activities  at  both  the  level  of  individual  NGOs  and  in  the  Czech  Forum  for 
Development Cooperation (FoRS). This tendency has been paralleled by further 
recognition of consumers of development issues as well as support for fair trade 
on the national and sub-national levels.  

Looking  into  more  consolidated  frameworks  for  support  of  fair  trade,  we 
examine  a  selection  of  countries:  medium  to  high  awareness  raising  and 
recognition  (France,  Italy)  and  high  awareness  raising  and  recognition 
(Germany,  the  Netherlands,  Belgium,  Denmark,  the  UK)  which  are  discussed 
below  and  where  we  highlight  some  of  their  particularities  and  modalities  of 
support.  These  countries  have  been  selected  to  represent  a  range  of  fair  trade 
organisational  structures  and  regulatory  experiences  as  well  as  geographical 
balance. Annex 1 represents the situation as of December 2014 and serves as the 
list for case selection. 

35 Paul,  Elisabeth  (2005),  Evaluating  fair  trade  as  a  development  project:  methodological  considerations, 
Development  in  Practice,  Vol.  15,  Iss.  2.  Le  Mare,  Ann.  (2008),  The  Impact  of  Fair  Trade  on  Social  and 
Economic Development: A Review of the Literature. Geography Compass, 2: 1922–1942. doi: 10.1111/j.1749-
8198.2008.00171.x
36 Note: the Czech Republic, Iceland, Poland, the Slovak Republic and Slovenia joined the DAC in 2013. OECD 
(2014),  Development  Co-operation  Report  2014:  Mobilising  Resources  for  Sustainable  Development,  OECD 
Publishing, Paris. DOI: http://dx.doi.org/10.1787/dcr-2014-en. 
Republic, Turkey, Taiwan, Israel, Slovenia, Thailand, United Arab Emirates, page 148. 
37 Polish Aid, 'Supporting development' 
https://www.polskapomoc.gov.pl/Supporting,development,1941.html
38 Ministerstwo Gospodarki (2014), 'Społeczna Odpowiedzialność Przedsiębiorstw (CSR)'
http://www.mg.gov.pl/node/10892

12

1.5 Medium  to  high  awareness  raising  and  recognition 

(France, Italy) 

1.5.1 France

Support  for  fair  trade  principles  has  been  inscribed  in  the  national  French 
legislation  and  authorities  showed  wide  engagement  as  early  as  2005  when  it 
became part of its Small Business legislation.39 It can be seen that fair trade is 
now  fully  part  of  the  national  strategy  for  sustainable  development,  which  is 
considered  a  binding  commitment  at  national  level.  The  recently  amended 
Article  60  of  the  Law  for  SMEs  (by  article  94  of  the  law  2014-856)  also 
highlights  the  importance  of  North-North  trade.40  The  dominant  paradigm  of 
world trade patterns has two principal features. Trade between North and South 
is  inter-industry  and  arises  due  to  traditional  comparative  advantage,  largely 
determined by differences in endowment patterns. North-North trade is defined 
as trade among the rich countries of the North and is mostly intra-industry. It is 
largely based on economies of scale and product differentiation.41 A recent study 
on fair trade in Europe provides further background on this tendency for support 
of North-North trade and what it means for LRAs.42  

In  2013,  the  ministers  in  charge  of  development  policy  launched  a  National 
Action Plan for fair trade after a government-wide consultation with the aim to 
ensure coherence across issue areas such as trade, tourism, ecology, agriculture 
and development. The main goal of the Action Plan is to provide a boost to fair 
trade in France, substantially increasing the proportion of purchase of fair trade 
products  in  the  basket  of  French  consumers  by  setting  precise  targets: 
multiplying  the  number  of  producers  in  the  South  engaged  in  fair  trade 
production  and  doubling,  within  five  years,  sector  jobs  in  France;  as  well  as 
ensuring  that  the  Plan’s  implementation  is  regularly  monitored.  This  plan  also 
links to the recent French draft policy and programming  Law on Development 
Policy  and  International  Solidarity,  which  'promotes  the  development  of  trade 
based  on  fair  trade  and  contributes  to  the  support  of  social  and  solidarity 
economy  initiatives  and  microcredit  in  recipient  countries'.43  Also  in  2014  the 
government  initiated  its  second  National  Action  Plan  for  Sustainable  Public 

39 Loi n° 2005-882 du 2 août 2005 en faveur des petites et moyennes entreprises, Article 60, 
http://www.legifrance.gouv.fr/affichTexte.do?cidTexte=LEGITEXT000006052103&dateTexte=20100719
40 Loi  n°  2014-856  du  31  juillet  2014  relative  à  l'économie  sociale  et  solidaire, http://www.developpement-
durable.gouv.fr/IMG/pdf/loi_no_2014-856.pdf
41 Helpman, Elhanan (1981). 'International Trade in the Presence of Product Differentiation, Economies of Scale 
and Monopolistic Competition: A Chamberlin-Heckscher-Ohlin Approach,' Journal of International Economics, 
1981, 11, pages 305-340. 
42 http://www.befair.be/sites/default/files/all-files/brochure/European%20fair%20trade%20products_0.pdf
43 Ministère de l'Écologie, du Développement durable et de l'Énergie (2014), 'Le commerce équitable',
http://www.developpement-durable.gouv.fr/Le-commerce-equitable,22617.html. 

13

the  Plan 

relies  on  civil  society 

Procurement  2014-2020  (PNAAPD).44  The  plan  aims  to  organise  national 
actions  for  sustainable  procurement  and  unite  the  different  actors  in  charge  of 
public procurement in State, local authorities and public hospitals.45 In terms of 
practical  application, 
representatives 
(e.g. La Plate-forme  Française  du  Commerce  Equitable  (PFCE))  as  a  key  tool 
to support fair trade initiatives on the sub-national level, in particular: strengthen 
the  attractiveness  of  fair  trade;  develop  the  competitiveness  of  fair  trade 
companies  by  opening  new  markets  and  expanding  existing  ones;  gather 
economic indicators on the fair trade markets; increase knowledge of the impact 
of fair trade and help with the forward thinking and activities of French players 
in  Official  Development  Assistance46  (ODA);  as  well  as  produce  a  practical 
educational  guide  for  public  and  private  purchases.47  As  previous  studies  have 
reported48,  France  was  the  first  country  to  adopt  a  'legislative  and  institutional 
framework  exclusively  devoted  to  fair  trade.'49  The  Minister  for  Social  and 
Solidarity  Economy  and  Consumption  continues  formalising  the  exchange  of 
good  practices  with  several  countries,  North  and  South,  within  cooperation 
agreements  and  partnerships.  These  agreements  contribute  in  particular  to 
promoting fair trade and strengthening activities on a sub-national level. 

Fair  trade  on  the  level  of  LRAs  is  primarily  driven  by  the  Territoires  de 
Commerce  equitable,  the  French  version  of  the  international  project  Fairtrade 
Towns.  The  campaign  team  provides  a  framework  for  support  to  LRAs  and 
citizens. LRA activity is also strengthened by their partnership with the French 
Agency  for  Development  –  AFD.  AFD  has  signed  about  30 partnership
agreements with French local governments that have expressed strong interest in 
international aid. It has provided funding through trilateral agreements (each co-
signed  by  AFD,  a  local  government  in  France,  and  a  partner  municipality  in  a 
developing country).50  

44 France also ratified on 26 February 2014 the new EU directive on public procurement and plans to transpose 
the Directive within two years.
45  Ministère  de  l'Écologie,  du  Développement  durable  et  de  l'Énergie  (2014),  Plan  national  d'action  pour  les 
achats  publics  durables  2014-2020,  Consultations  publiques,  June  2014,  http://www.consultations-
publiques.developpement-durable.gouv.fr/plan-national-d-action-pour-les-achats-publics-a512.html
46 The  OECD  Development  Assistance  Committee  (DAC)  defines  ODA  as  'those  flows  to  countries  and 
territories  on  the  DAC  List of ODA  Recipients  and  to  multilateral  institutions which are: provided by official 
agencies, including state and local governments, or by their executive agencies; and each transaction of which: 
a) is administered with the promotion of the economic development and welfare of developing countries as its
main objective; and b) is concessional in character and conveys a grant element of at least 25 per cent (calculated 
at a rate of discount of 10 per cent).' 
http://www.oecd.org/dac/stats/officialdevelopmentassistancedefinitionandcoverage.htm#Definition
47 Ministère de l'Écologie, du Développement durable et de l'Énergie, 'Soutenir au plan institutionnel les acteurs 
et les principes du commerce équitable', http://www.developpement-durable.gouv.fr/IMG/pdf/05-11.pdf
48 See Brigitte and Dine, Janet (eds). The Processes and Practices of Fair Trade: Trust, Ethics and Governance, 
Routledge  
49 Ibid at 128. 
50 AFD Annual report 2013. 
http://www.afd.fr/lang/en/home/publications/Publications-institutionnelles/rapports-annuels

14

Another  initiative  which  has  to  be  observed  and  evaluated  is  the  'Local  Fair 
Trade  Charter',  launched  in  June  2014  which  sets  fourteen  principles  aimed  at 
developing  fair  trade  relations  in  support  of  smallholder  and  agroecological 
agriculture in the French situation and context.51

1.5.2 Italy

Italy  is  characterised  by  regional-level  legislation,  which  to  a  varying  degree 
covers  the  modalities  of  fair  trade  support  in  the  absence  of  a  standard 
framework at national level.52 The reason for selecting Italy is the fact that the
proposed  fair  trade  bill  presents  the  most  ambitious  legislative  initiative  in  the 
EU. As recently as November 2014, Italy has put forward a bill for  Provisions 
for  the  regulation  and  promotion  of  fair  trade53 which  aims  to  establish  a 
regulatory framework and a legal status specific to a world in constant growth, 
quantitative and qualitative, such as that of fair trade. The draft law provides the 
background to the growth of fair trade in Italy, where the General Assembly of 
the Italian fair trade (AGICES) brings together 92 fair trade organisations, each 
of which produces multiple working and voluntary opportunities across sixteen 
Italian regions. In Italy the world shops continue to have a central role for both 
commercial  and  awareness  raising  activities.  The  law  also  provides  a  detailed 
overview on the dynamics on a regional level, with Tuscany being the pioneer in 
developing a fair trade law. In drafting regional laws to promote fair trade, the 
authorities have considered four key elements: 54

-
-
-

-

the recognition of the social and cultural value of fair trade by the region;
the presence of the definition of a fair trade organisation;
support  for  organisations  involved  in  the  dissemination  of  fair  trade
products;
support to the practices of fair trade purchases of Local Authorities.

According to the Italian national authorities themselves, the main feature of the 
Tuscany  and  Abruzzo  texts  in  particular  is  'the  strong  emphasis  on  the 
importance of the self-regulatory system which organizations of the sector have
developed  in  recent  years'.55  At  the  same  time,  they  highlight  the  need  for 
incentives and enabling factors.  

51  France  has  national  'local  fair  trade'  charter.  http://www.befair.be/en/content/france-has-national-local-fair-
trade-charter
52 Interview 1. 
53 Da  Villa  et  al.  (2014),  Disposizioni  per  la  disciplina  e  la  promozione  del  commercio  equo  e  solidale, 
http://www.camera.it/_dati/leg17/lavori/stampati/pdf/17PDL0027590.pdf.
54 Legge Rergione Toscana Sul Commercio Equo et Solidale L.R. 23 Febbraio 2005 n. 37, Disposizioni per il 
sostegno 
Toscana, 
commercio 
http://www.cesvot.it/repository/cont_schedemm/187_allegato.pdf ; Abruzzo regional law 28 March 2006, n. 7
55 Il  Quadro  Legislativo  Italiano  per  il  Commercio  Equosolidale  e  l'inserimento  dei  Criteri  Equosolidali  Negli 
Acquisti  Pubblici:  Primo  rapporto  semestrale  dell'attività  del  Progetto  Public  Affairs  relativa  al  'Monitoraggio 

diffusione 

solidale 

equo 

alla 

del 

in 

e 

15

The specific objective of the proposed national-level framework is not to replace 
these activities but to provide: i) an official recognition of the role played by all 
those  who  participate  in  fair  trade  activities  and  establish  precise  definitions 
(Article 2); ii) give a guarantee to the public and especially to consumers about 
the transparency and fairness of the production processes and methods through a 
certification  system  to  document  the  conformity  of  production  processes 
(Article 6);  iii)  support  and  fund  initiatives  for  fair  trade  products  and 
organisations active in this area.  

The interventions which will be financed through the fund include: 

- different  modes  of  facilitation  and  incentives  for  organisations  investing

in fair trade (Article 9);

- promotion of public goods within the offices of fair trade (Article 10);
-
-

institution of a National Fair Trade Day (Article 11);
establishment of the Fund for Fair Trade (Article 14)56.

Further  examples  from  Italy  include  the  recently  adopted General  regulations 
on  international  cooperation  for  development  which  highlight  the  principle  of 
subsidiarity  and  the  participation  of  fair  trade  organisations  in  international 
development.57  

1.6 High  awareness  raising  and  recognition  (Germany, 
Belgium, the Netherlands, Denmark and the UK) 

1.6.1 Germany 

Germany has a number of diverse configurations across LRAs. At the level of 
the  Federal  Government,  the  2012  Progress  Report  of  National  Sustainable 
Development  Strategy  explicitly  defines  its  support  to  fair  trade,  emphasising 
sustainable  and  environmentally-friendly  procurement  and  civil  society.  Under 
the aegis of the Federal Ministry of Economic Affairs, the Federal Government 
and the Länder express their sustainable procurement alliance by promising  'to
consult with environmental and social standard systems, e.g. The Common Code 

sull'approvazione e l'applicazione di nuove leggi regionali e nazionali sul commercio equosolidale e gli acquisti 
pubblici solidali' 
56  With  a  budget  of  1  million  Euros  for  the  year  2015  based  on  the  commitment  to  raise  funds  taken  in  the 
Assembly of the Chamber of Deputies from government pro tempore November 26, 2012, accepting the agenda 
no. 9/05 535-A / 007 (Duilio, Lulli). 
57 Legge 11 agosto 2014 , n. 125, Disciplina generale sulla cooperazione internazionale per lo sviluppo, page 10,
http://www.cooperazioneallosviluppo.esteri.it/pdgcs/Documentazione/NormativaItaliana/legge%2011%20agosto
%202014%20n.%20125%20-.pdf

16

for  the  Coffee  Community  and  Fairtrade.58 The  strategy’s  focus  is  on  ways  to 
stimulate  demand,  inviting  'the  citizens  of  Germany  to  get  involved  in  global 
development  through  an  engagement  campaign  –  by  purchasing  fair  trade
products,  by  volunteering 
in  civil  society  organisations,  by  donating, 
campaigning  and  many  other  forms  of  active  engagement'.59  Well-known 
flagship  projects  that  involve  awareness  raising  events  include  the  Fair  Trade 
Action Week and The Capital of Fair Trade60.

In  terms  of  cooperation  practices,  the  Fair  Procurement  Network,  created  in 
2007,  prompts  sub-national  authorities  to  buy  fair  trade  products  and  waive 
goods  that  are  produced  by  child  labour  or  in  violation  of  minimum  social 
standards.61  Other  key  actors  assisting  fair  trade  by  LRAs  include  the  Service 
Agency  Communities  in  One  World  (SKEW)  and  Deutsche  Gesellschaft  für 
Technische Zusammenarbeit (GTZ).62 The Service Agency Communities in One 
World  (SKEW),  a  division  of  Engagement  Global  gGmbH63,  supports  local 
actors in realising sustainable, municipal development cooperation on behalf of 
the  Federal  Ministry  for  Economic  Cooperation  and  Development  (BMZ)  and 
supports the uptake of fair trade practices by municipalities.64 SKEW is intended 
to  assist  the  development  of  capabilities  of  municipal-level  German  actors 
within local authorities and non-governmental organisations in the fields of fair 
trade/fair  procurement  and  global  municipal  twinning  arrangements,  but  also 
migration and development. It has a broad structure which involves federal, state 
and  local  governments  as  well  as  NGOs.  SKEW  is  also  intended  to  make  a 
contribution to realising the Millennium Development Goals (MDGs).  

58 National Sustainable Development Strategy 2012 Progress Report, page 184.
59 Ibid at 209.  
60 Organised by the Fair Trade Forum, the Fair Trade Action Week happens once per year and aims to increase 
consumers'  awareness  of  fair  trade  issues  and  to  encourage  them  to  purchase  regularly  fairly  traded  products. 
Organised  in  every  two  years  by  Service  Agency  Communities  in  One  World  (SKEW),  a  body  that  supports 
local  actors  in  realising  sustainable,  municipal  development  cooperation,  the  'Capital  of  Fair  Trade'  is  a 
competition which awards 'promotion of fair trade local activities, including city marketing campaigns, school 
projects  and  joint  public-private  activities.  Recognition  is  also  given  to  bodies  that  purchase  fairly  traded 
products, for example public authorities that serve fairly traded coffee and canteens in municipal institutions that 
use fair trade products.' Based on the municipal contributions submitted in 2009 to the campaign 'Capital of Fair 
Trade',  The  Service  Agency  Communities  issued  in  November  2010  a  practical  guide  on  Fair  Trade  in 
municipalities. The guide is an information tool for city administration and civil society showing them actions of 
structural measures, information awareness, municipal procurement, fair city marketing, marketing and sales of 
fair 
http://www.service-eine-
education. 
products, 
welt.de/hauptstadtfh/hauptstadtfh-start.html
61 Servicestelle  Kommunen 
http://www.service-eine-welt.de/beschaffungswesen/beschaffungswesen-start.html
62 Fröhlich, Katrin and Lämmlin, Bernd (2009). Local development policy in Germany 
Study  on  the  commitment  of  German  cities,  municipalities  and  rural  districts  to  development  policy.  German 
Development Institute (GDI) and Service Agency Communities in One World / InWEnt gGmbH. Available at: 
http://www.service-eine-welt.de/en/images/text_material-1623.img.
63 Engagement Global has been Germany's one stop shop for engagement for development, both Germany-wide 
and internationally. It advises individuals and groups on development measures, and supports these financially. 
See more at: www.engagement-global.de.
64 See more at: http://www.service-eine-welt.de/en/images/text_material-2703.img

'Fairer  Handel  und  Faire  Beschaffung',

in  der  Einen  Welt  (SKEW), 

development 

See  more 

trade 

and 

at: 

17

Another  partner  for  local  authorities  in  projects  overseas  is  the  Deutsche 
Gesellschaft  für  Technische  Zusammenarbeit  (GTZ)  which  works  with  the 
German Association of Cities. It supports local authorities in partner countries in 
the  'fields  of  democratisation  and  decentralisation  and  assists  involvement  of 
municipal projects and twinning arrangements in technical cooperation'.65

Most  recently,  the  German  Section  of  Council  of  European  Municipalities  and 
Regions (CEMR) published a comprehensive report entitled 'Municipal Charter 
for  the  Future  –  One  World  –  Our  Responsibility,  Sustainability  at  Municipal
Level'66, which aims to contribute to the initiatives accompanying the European 
'supporting  decentralisation  processes, 
Year  for  Development  2015  by 
participating in the establishment of autonomous local governments, and sharing 
with  their  colleagues  from  the  South  the  lessons  they  have  learned  with 
municipal services.'67 The importance of the Municipal Charter for the Future is 
in  its  provision  of  a  comprehensive  description  of  the  tasks  municipalities 
perform  in  the  areas  of  sustainability,  including  fair  trade.  Acknowledging  the 
variation  of  structures  and  resources  across  countries,  the  Charter  clarifies  the 
role of municipalities in global supply chains and thus can serve as an example 
for a EU-wide Charter.  

1.6.2 The Netherlands 

The Netherlands has one of the oldest structures in place to support fair trade68.
Over the past years, the Netherlands has undertaken a review of its development 
policy  and  created  the  post  of  Minister  for  Foreign  Trade  and  Development 
Cooperation at the Ministry of Foreign Affairs in order to underline coherence 
between  the  two  policy  areas69.  In  light  of  this,  one  of  the  private  sector 
instruments  that  it  supports  is  the  Sustainable  Trade  Initiative  IDH70  (Initiatief 
Duurzame  Handel),  started  in  2008  as  a  'multistakeholder  initiative  of  private 
companies,  NGOs,  trade  unions  and  the  Dutch  government  with  the  aim  of 

65 Ibid 59 at 5. 
66 This Municipal Charter is part of a joint initiative of the German Federal Ministry for Economic Cooperation 
and  Development  Charter  for  the  Future  which  aims  to  unite  the  efforts  of  state,  civil  society,  the  scientific 
community,  the  business  community,  regions  and  municipalities  in  developing  a  joint  contribution  to  the
European Year for Development 2015. 
67 Stated in introduction by Karl-Heinz Schäfer, Mayor of Pohlheim and President of the German Section of the 
Council of European Municipalities and Regions in Council of European Municipalities and Regions/ German 
Section (2014), Municipal Charter for the Future. One World – Our Responsibility
Sustainability at the Municipal Level http://www.service-eine-welt.de/en/images/text_material-4257.img
68 Ibid 2 at 137.  
69 IDH (Initiatief Duurzame Handel), 'Institutional Partners' 
http://www.idhsustainabletrade.com/institutional-partners
70 IDH (Initiatief Duurzame Handel), 'Organisation' http://www.idhsustainabletrade.com/organization

18

improving  the  sustainability  of  commodity  production  and  trade  in  developing 
countries'.71  

The scheme receives funding72 from the Ministry of Foreign Affairs and match-
funding from a growing number of private partners. It has developed into a key 
player  in  accelerating  the  use  of  Voluntary  Sustainability  Standards  (like  UTZ 
and Rainforest Alliance certified) and other efforts to improve the sustainability 
in supply chains for commodities from developing countries.73 The initiative has 
been defined as 'modern business-like public/private cooperation' and is one of 
the  key  tools  of  the  Dutch  government  to  pursue  an  integrated  agenda  for  aid, 
trade  and  investment.74  In  the  assessment  of  the  IDH,  the  evaluators  follow  a 
general theory of change leading to the idea that to drive the process of market 
transformation in supply chains, an initial level of public support is necessary to 
establish the standards and launch the training. From this assumption it follows 
that  once  a  'certain  market  share  of  sustainable  produce  is  reached,  other 
companies  would  follow,  and  less  or  no  external  support  would  be  required'.75
Therefore,  public  support 
through  for  example,  subsidies  and  Official 
Development Aid can bridge the period between set-up investment and tangible 
benefits  which  would  serve  as  an  incentive  to  economic  operators.  This 
approach resonates with the infant industry theory and the decision of when an 
industry should be protected.76 The possible role of government in establishing 
the long-term public-private partnership includes 'subsidising pilot programmes, 
convening  frontrunner  market  players  and  NGOs,  creating  networks  and 
exchanging  knowledge  of  mainstream  players,  strengthening  transparency  and 
competition, to putting legislation in place'.77

The  IDH’s  Action  Plan  Sustainable  Trade  2011-2015  has  been  defined  as  a
'public-private  sustainability  investment  portfolio'  supported  by  70  private 
companies,  CSOs,  labour  unions  and  trade  associations,  coordinated  through 
IDH.78  Other  institutional  partners  include  the  Ministry  of  Foreign  Affairs  of 

71 Government of the Netherlands (2014). Review of the Sustainable Trade Initiative IDH 2008-2013. Terms of 
Reference (24 April 2014),  
http://www.government.nl/ministries/bz/documents-and-publications/reports/2014/07/21/iob-terms-of-reference-
review-sustainable-trade-initiative-idh-2008-2013.html, page 1. 
72 EUR 123 million ODA committed for the period 2008-2015 
73 Ibid 47 at 1.  
74 Idem. 
75 Ibid 47 at 3. 
76 As Melitz (2005) summarises: 'a government planner can protect the infant industry using domestic production 
subsidies, tariffs, or quotas in order to maximize domestic welfare over time.' Melitz (2005) shows 'the decision 
to protect the industry should depend on the industry's learning potential, the shape of the learning curve, and the 
degree  of  substitutability  between  domestic  and  foreign  goods.'  Melitz,  Marc  (2005).  When  and  how  should 
infant industries be protected?, Journal of International Economics, 66, page 178.  
77 Ibid 47 at 4. 
78 Ibid 47 at 5. 

19

Denmark79 and  the  Federal  Council  of  Switzerland80.  The  development  and 
implementation  of  IDH  serves  as  a  very  good  example  of  an  innovative 
approach undertaken by the national authorities to enable developments on the 
sub-national level. Another interesting initiative from the Dutch government is a 
dedicated  government  agency supporting  exports  from  small  producers  in 
developing  countries,  CBI.81 Together  with  the  Dutch  Association  of  World 
Shops  (DAWS)  with  funding  from  the  Ministry  of  Foreign  Affairs,  CBI  has 
established  the Upscaling Gifts & Living products project. The project aims at 
improving  European  market  access  for  producers  of  fair  trade  Gift  &  Living 
products.  'The  target  countries  are  six  African  countries  – Egypt,  Kenya,
Madagascar,  South  Africa,  Tanzania  and  Uganda  – as  well  as  Vietnam  and
Indonesia.'82 Such initiatives provide an example which can be replicated at EU 
level  in  order  to  facilitate  the  EU  market  access  of  SMEs  in  developing 
countries.

1.6.3 Belgium 

In  Belgium  the  system  of  multi-level  governance  gives  independence  to  sub-
national  authorities  to  conduct  policy  making,  which  is  clearly  reflected  in  the 
policies  implemented  by  the  City  of  Ghent.83  The  formation  of  a  common 
sustainable development strategy is essentially based on regional approaches as 
national  level  strategy  does  not  exist.  Belgian  policy-makers  are  currently 
negotiating  National  Sustainable  Development  Strategy  (NSDS).84  Being  a 
federal state, adopting a national strategy requires the coordination between the 
federal government, the regional and the community governments. The adoption 
of  a  NSDS  would  also  be  applicable  to  sub-national  levels,  which  would 
incentivise  stronger  coherence  between  the  different  political  levels.85  On  the 
regional level in Belgium, the Walloon and Flemish governments have actively 
promoted  fair  trade.  In  2013,  the  Walloon  government  adopted  a  strategy  for 
sustainable  development,  which  provides  a  long-term  framework  for  targeting 
environmental,  economic  and  social  challenges  and  resulting  opportunities  by 
2050.86  These  are  addressed  across  seven  themes:  food,  housing,  health,  social 

(see 

State 

IDH. 

Secretariat 

79 Danida  supports  IDH  with  € 1.2 million  for  cotton  and  coffee  programmes  in  East  Africa  (see  Ministry  of
Foreign Affairs of Denmark, 'Danida Business'), http://um.dk/en/danida-en/activities/business/. 
80 The  Federal  Council  of  Switzerland  allocated  €  24.5  million  (CHF  30  million)  to  a  strategic  four-year
SECO  website, 
partnership  with 
http://www.seco.admin.ch/index.html?lang=en) 
81 CBI, http://www.cbi.eu/.  
82 CBI Annual Report 2013, http://www.cbi.eu/sites/default/files/subweb/cbi_annual_report2013.pdf, page 30.
83 Interview 3. 
84 European Sustainable Development Network (2013). National Sustainable Development Strategies in Europe 
2013.  Taking 
stock  and  exploring  new  developments,  Quarterly  Report  N°29,  http://www.sd-
network.eu/quarterly%20reports/report%20files/pdf/2013-July-
National_Sustainable_Development_Strategies_in_Europe_2013.pdf, pages 15-16. 
85 Ibid 72 at 16. 
86 Portail de la Wallonie, Première Stratégie Wallonia de Developpment Durable,

Economic  Affairs 

for 

20

cohesion,  consumption  and  production,  energy  and  mobility.  In  terms  of  fair 
trade,  the  document  highlights  that  the  government  'intends  to  systematically 
favour in the canteens of regional governments, public interest organizations and 
other  regional  institutions,  products  from  the  Walloon  agriculture,  organic 
farming, local produce and seasonal and those of fair trade. To do this, a central 
market  is  implemented  to  encourage  public  authorities  to  favour,  in  terms  of 
consumption of agricultural products, purchase of goods and services produced 
locally and sustainably'.87 This commitment to sourcing ethical production and 
consumption  also  exists  in  two  consecutive  Regional  Policy  Statements:  2009-
201488  and  2014-201989  of  Wallonia,  where  the  government  also  reiterates 
support  for  North-North  fair  trade.  The  Flemish  government  takes  the 
commitment  to  fair  trade  further  by  outlining  a  vision  for  the  international 
dimension  of  its  policy  by  2050  to  fully  be  based  on  the  principle  of  a  fair 
world.90 Another stakeholder in support for fair trade activities by LRAs is the 
Trade  for  Development  Centre  (TDC)  which  is  a  programme  of  the  Belgian 
Development Agency (BTC) programme. The Centre gives smallholders in the 
South the opportunity to develop in a sustainable way by supporting a range of 
fair  trade-related  initiatives.  It  is  involved  in  awareness  raising,  disseminating 
and  exchanging  information,  as  well  as  organising  the  yearly  'Week  of  Fair 
Trade' in Belgium.91

1.6.4 Denmark 

The Danish approach to fair trade support is primarily based on direct financial 
support (grants) and promotion of labelling. The legal basis for the support the 
Government’s  Action  Plan  for  Corporate  Social  Responsibility  2012-1015:
Responsible  Growth  of  201292.  The  action  plan  contains  42  initiatives  in  four 
dimensions:  

the 

respect 

- Strengthening 
stakeholders
Increasing responsible growth through partnerships
Increasing transparency

for 

-
-

international  principles  across  all

http://www.wallonie.be/sites/wallonie/files/pages/fichiers/1ere_strat_dd.pdf, page 4. 
87 Ibid 85 at 111-112. 
88 Gouvernement wallon, Projet de Déclaration de politique régionale wallonne 2009-2014, 
http://gouvernement.wallonie.be/sites/default/files/nodes/publication/901-
projetdedeclarationdepolitiqueregionalewallonne.pdf, page 42.  
89 Gouvernement wallon (2014), Oser, innover, rassembler, 2014-2019
http://gouvernement.wallonie.be/sites/default/files/nodes/story/6371-dpr2014-2019.pdf, page 30, 
90  Flemish  Government  (2012),  Vision  2050:  Flemish  Sustainable  Development  Strategy  2010-2014,  page  44
http://www.flanders.be/en/publications/detail/vision-2050-flemish-sustainable-development-strategy-2010-2014
91 BTC Trade for Development, http://www.befair.be/en/fair-trade/fair-trade.  
92 Danish Government (2012), Responsible Growth. The Action Plan for Corporate Social Responsibility 2012-
2015, http://csrgov.dk/danish_action_plan_2012. 

21

- Using  the  public  sector  to  promote  a  good  framework  for  responsible

growth.

The  Danish  Ethical  Trading  Initiative  (DIEH):  Strengthen  Danish  Efforts  on 
Ethical  Trade  is  a  'multi-stakeholder  initiative  that  brings  together  Danish 
companies,  trade  unions,  business  associations  and  NGOs  to  promote  ethical 
trade  and  responsible  supply  chain  management  among  Danish  companies'.93
The  project  addresses  all  modalities  of  supply  and  demand  support,  including 
knowledge dissemination among companies on ethical trade, knowledge sharing 
and  exchange  of  lessons  learned  among  all  stakeholders,  strengthening  efforts 
by  companies  within  ethical  trade,  developing  multi-stakeholder  dialogue  and 
collaboration, as well as 'qualify[ing] the debate in Denmark about ethical trade 
and  engage  more  Danish  companies  in  the  work  on  ethical  trade  in  practice'.94
Thus  the  project  will  serve  as  a  means  to  consolidate  'DIEH  as  the  national 
platform for engagement on ethical trade'.95

Under  the  same  action  plan  falls  Fair  trade  for  all:  Contribution  to  a  fivefold 
increase  in  the  Fairtrade  consumption  in  Denmark  by  202096 put  forward  by 
Fairtrade  Mærket  Danmark  Fonden  (Fairtrade  Mark  Denmark)  under  the 
Facility  to  Promote  Corporate  Social  Responsibility  and  Fair  Trade97.  The  aim 
of  the  initiative  is  to  increase  the  turnover  of  Fairtrade-marked  products  in 
Denmark through three strategic activities98:

- business development: commercially-based outreach motivate businesses
to  engage  in  product  development  and  investment;  activities:  research,
meetings, workshops, materials and customer relations
consumer motivation: information dissemination on fair trade to increase
the demand, and to encourage debate about fair trade; activities: magazine
FairNOK and electronic distribution

-

93  Ministry  of  Foreign  Affairs  of  Denmark  (2013),  The  Danish  Ethical  Trading  Initiative:  Strengthen  Danish 
Efforts  on  Ethical  Trade'  Fiche,  http://um.dk/en/~/media/UM/English-site/Documents/Danida/About-
Danida/Danida%20transparency/Documents/Grant%20committee/2013/Int%20doc/13%20DIEH%202013.pdf
,
page 1. 
94 Ibid 91 at 1. 
95 Idem. 
96 Ministry of Foreign Affairs of Denmark (2013). 'Fair trade for all: Contribution to a fivefold increase in the 
Fairtrade 
http://um.dk/en/~/media/UM/English-
site/Documents/Danida/About-
Danida/Danida%20transparency/Documents/Grant%20committee/2013/Ext%20doc/08%20Fairtrade.pdf,  page 
1.
97  Ministry  of  Foreign  Affairs  of  Denmark,  Department  of  Green  Growth  (2013).  'Fairtrade  Mark  Denmark: 
Bridging
http://um.dk/en/~/media/UM/English-site/Documents/Danida/About-
Danida/Danida%20transparency/Documents/Grant%20committee/2013/Int%20doc/02%20Fairtrade%20Mark%
20Denmark.pdf .
98 Ibid 94 at 2. 

in  Denmark 

consumption 

Fiche, 

Fiche, 

Phase'

2020' 

by 

22

- public  procurement:  approach  municipalities  and  public  institutions  to
increase  the  number  of  participants  in  the  Fairtrade  City  Campaign99;
activities:  campaign  materials,  and  meetings  with  municipalities  and
cooperation partners.

Finally,  under  jointly  the  Strategic  Framework  for  Priority  Area  Growth  and 
Employment  2011-2015  and  the  Responsible  Growth  –  Action  Plan  for
Corporate  Social  Responsibility  2012-2015, 
International 
the  Danish 
total  of  DKK 1,5 million 
Development  Agency  (Danida)  contributed  a 
(EUR 201,500)  to  financially  support  the  promotion  of  Fairtrade-labelled 
products by Fairtrade Mark Denmark (FMD) which serves as a bridging phase 
until  application  criteria  and  procedures  for  the  new  Corporate  Social 
Responsibility & fair trade facility have been completed. The type  of activities 
which are financed include: i. guidance and assistance to companies on product 
development and supply chain management and growing the assortment of fair 
trade products; ii. optimise the marketing of Fairtrade labelled products; as well 
as  iii.  raise  awareness  about  development  challenges  and  the  Fairtrade 
labelling.100

Grants  from  Danida  have  almost  solely  been  used  for  activities  motivating 
consumers  and  commercial  actors  by  creating  awareness  about  Fairtrade  since 
FMD has a high degree of independent earning without external financing. The 
Fairtrade Mark Denmark: Bridging Phase can serve as an example for bridging 
finance to LRAs while they establish their own source of financing.101  

1.6.5 The United Kingdom 

Like the Netherlands, the UK has established structures and processes in support 
of  fair  trade  without  the  existence  of  legislative  background.  Government 
support to the various sub-national levels has been substantial and has followed 
the  product-certification  route.102  The  United  Kingdom  is  the  country  with  the 
highest  amount  of  Fairtrade  Cities,  formally  recognised  by  the  Fairtrade 
Foundation  as  a  city  where  there  is  strong  support  for  Fairtrade  by  local 
residents,  businesses/organisations,  schools,  faith  communities  and  community 
groups.  

According to the Fairtrade Foundation 2014 Factsheet, the UK is currently the 
biggest Fairtrade market in the world, with GBP 1.5 billion (EUR 2,02 billion) 

99 Fairtrade City is part of the global Fairtrade Towns campaign see page 1. Fairtrade City campaign in Denmark 
is  run  in  cooperation  with  Danish  Association  for  International  Co-operation  (Mellemfolkeligt  Samvirke)  and 
has resulted in six cities/municipalities being declared Fairtrade cities. 
100 Ibid 96 at 3.  
101 See more  
102 For a description of the product-certification route see page 1. 

23

spent  on  Fairtrade  products  in  2012  and  there  are  more  than  1,000  Fairtrade 
schools in the UK, with a brand new school scheme launched in 2014.103 Thus 
fair trade has definitely established itself as mainstream in the UK.  

Overall UK support to fair trade is largely linked to the way fair trade promotion 
has developed, particularly that it has been largely grassroots based.104 It started 
through the initiatives of local residents and NGOs as well as consumers with a 
desire  for  ethically  sourced  products  in  general.  In  the  UK,  compared  to  other 
Member  States,  fair  trade  initiatives  are  largely  driven  by  the  grassroots  and 
much  progress  has  been  made  at  town  level.  Currently,  steps  are  taken  to 
improve cooperation within counties.105  

UK  Government  policy,  reflected  in  the  Eliminating  World  Poverty:  Building 
our  common  future. White Paper on International Development, highlights  the 
association  between  fair  trade  and  sustainable  development  by  identifying  the 
purchase  of  goods  produced  and  traded  as  a  tool  that  has  the  potential  to 
contribute to international development efforts in a way that is sustainable over 
time.106  The  mode  of  support  for  fair  trade  focuses  on  start-up  grants  and 
procurement  guidelines  but  also  ethical  procurement  by  public  administration. 
In  particular,  in  2009,  the  UK  Government  announced  that  the  Fairtrade 
Foundation – the organisation responsible for licensing Fairtrade International’s 
(FLO) Fairtrade certification mark in the UK – was to be supported with a grant
of  £12  million  (EUR  16,2  million).107  Fairtrade  Foundation,  which  organises 
Fairtrade  Fortnight  each  year  to  raise  awareness  of  the  Fairtrade  message,  is 
defined as 'the face of UK fair trade'.108

Central UK Government policy and procurement guidelines also recognise that 
'constituent  government  institutions  can  contribute  towards  the  fair  trade 
movement through the procurement of fair trade goods'.109  

103 Fairtrade Fortnight 2014: Facts & Figures.  
http://foncho.fairtrade.org.uk/wp-content/uploads/2013/11/FactsStats_20141.pdf.
104 Interview 2. 
105 Interview 2. 
106 Department for International Development (DFID) (2009), Eliminating World Poverty: Building our common 
future. White Paper on International Development, 
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/229029/7656.pdf  
107 Smith, Alastair M. (2010). Fair Trade Governance, Public Procurement and Sustainable Development: A case 
study of Malawian rice in Scotland, Department of City and Regional Planning, Cardiff University, May 2011, 
http://orca.cf.ac.uk/10706/1/2011SmithAMPhD.pdf. 
108 Department  for  International  Development, The  Rt  Hon  Justine  Greening  MP and HM  Treasury  (2013). 
Policy  –  Helping  developing  countries'  economies 
last  updated  20  November  2014,
https://www.gov.uk/government/policies/helping-developing-countries-economies-to-grow/supporting-
pages/supporting-fair-and-ethical-business-operations  
109 Ibid 101 at 2. 

to  grow, 

24

The  government  has  been  directly  supporting  'fair  trade'  and 'ethical  trade' 
initiatives with key documents across government departments:  

- Department  for  Environment,  Food  &  Rural  Affairs’  Plan  for  public

procurement: food and catering: the balanced scorecard (2014)110

- Making  sustainable  development  a  part  of  all  government  policy  and

operations

- Ethical Trading Initiative (Department for Business Innovation and Skills

2011)111

- Responsible  and  Accountable  Garment  Sector  (RAGS)  challenge  fund  –
DFID  also  supports  improvements  in  working  conditions  in  garment
industries in Bangladesh, India and Lesotho;

- Office  for  Government  Commerce’s  guidance  on  how  government
through  public  procurement

trade 

fair 

departments  can  support 
(DFID 2009).

In the UK, recognition by central government has been paralleled by increased 
consumption of fair trade goods by both private and public buyers. Support by 
LRAs  is  enclosed  in  the  local  development  documents,  including  area  action 
plans in the Local Development Framework (LDF), the Sustainable Community 
Strategy, and the Local Area Agreement (LAA). 

110 See more:  
Department  for  Environment,  Food  &  Rural  Affairs  https://www.gov.uk/government/publications/a-plan-for-
public-procurement-food-and-catering-the-balanced-scorecard
111 Ethical Trading Initiative, http://www.ethicaltrade.org/. 

25

2. Sum-up on modalities of support

Until now the study/analysis has provided some examples of enabling factors on 
the  national  and  sub-national  level.  The  summary  table  provided  in  Annex 1
gives  an  overview  of  which  level  of  governance  tackles  fair  trade  practices 
through legislative and non-legislative documents and which are the responsible 
authorities. As seen in the first part of the note, the list is rather limited for most 
countries  of  Central  and  Eastern  Europe,  mostly  due  to  the  fact  that 
organisational  structures  and  practices  associated  with  fair  trade  are  in  the 
process of development and there are wide discrepancies in the pace.  

From  the  more  detailed  overview  of  the  other  eight  countries,  we  see  that 
modalities of support take different configurations and they have also undergone 
changes over the past year to accommodate the changed nature of fair trade from 
a parallel to mainstream market and from labelling and certification to activities 
which  target  inter  alia  education  and  training,  capacity  building  and  network 
development. 

These include but are not limited to: 

- National policy which enables and stimulates partnerships among LRAs;
- Procurement policies which target sustainable practices;
- Funding  instruments  which  reflect  local  and  regional  structures  and

capacity, in the form of subsidies or credit facilities;

- Support  and 
cooperation;

inclusion  of  LRAs  as  stakeholders 

in  development

- Public awareness of ethical consumption;
- Creating networks with other Member States.

Based on previous research, we have seen that the extent to which the national 
level  can  create  an  enabling  environment  depends  inter  alia  on  institutional 
settings and the degree of centralisation in the country under review, experience 
in promoting local and regional development, effectiveness of local and regional 
administrative systems, distribution of competencies between national, regional 
and local levels and the intensity of relations between sub-national institutions & 
civil  society112.  The  synopsis  also  highlights  that  political  commitment  and 
incentives  on  the  national  level  can  create  an  enabling  environment  for  the 

112  For  more  information  on  these  factors,  see:  Boland,  P  (1999),  'Contested  Multi-Level  Governance: 
Merseyside  and  the  European  Structural  Funds'  European  Planning  Studies,  vol  7(5),  no.  5,  pages  647-664.; 
Hooghe,  Liesbet  and  Gary  Marks  (2003)  'Unraveling  the  Central  State,  But  How?  Types  of  Multi-Level 
Governance', American Political Science Review 97: 2 (June). Milio, Simona (2013), The conflicting effects of 
multi-level governance and the partnership principle: evidence from the Italian experience. European Urban and 
Regional Studies. ISSN 0969-7764 (In Press). 

27

development of more fair trade activities. This has taken various patterns where 
general  strategies  on  sustainable  development  are  combined  with  legislative 
initiatives as well as grants, platforms and awards.  

One of the modalities of support which has been present, especially in the latest 
efforts  by  Denmark,  Sweden  and  the  Netherlands,  is  the  creation  of  multi-
stakeholder  initiatives  of  private  companies,  NGOs,  trade  unions  and  the  local 
and  regional  authorities,  with  the  aim  of  improving  the  sustainability  of 
commodity production and trade in developing countries. The multi-stakeholder 
initiatives can take various forms and they often involve an initial contribution 
by the government in order to create a bridging phase until sufficient resources 
are  collected  for  it  to  be  self-sustainable.  The  involvement  of  diverse 
stakeholders ensures the alignment of interests, goals and behaviour of the main 
economic actors for the benefit of local economic development and ethical trade 
with developing countries.  

The  examples  of  the  countries  reviewed  also  points  to  the  advantages  of 
combining supply and demand  approaches as well as top-down and bottom-up
approaches. With regard to the former, attention should be paid to those action 
plans  which  combine  provisions  encouraging  the  uptake  of  fair  trade  products 
by  citizens,  companies  and  public  bodies  and  creating  better  conditions  in 
developing  countries,  for  instance  through  decentralised  cooperation  or  by 
encouraging  local  companies  to  source  more  fair  trade  products.  The 
combination of supply and demand is especially notable in the proposed Italian 
bill  which  goes  a  step  further  and  defines  all  key  methods  of  support  to  fair 
trade.  Opportunities  for  fair  trade  support  can  also  be  recognised  in  the 
approaches  where  countries  develop  an  experience-sharing  platform  on  a 
national  or  regional  level.  These  include  Germany  with  the  well-known  Fair 
Trade  Capital  Award  but  also  some  of  the  specific  regional  initiatives  such  as 
the Saarbrücken and the QuattroPole Initiative. 

28

3. Good practices

Multiple  good  practices  have  been  identified  in  support  of  fair  trade, 
decentralised cooperation and innovative approaches to ethical trade. Below the 
note  highlights  some  examples  across  the  primary  methods  of  support: 
awareness-raising,  financing  schemes  (also  mentioned  for  individual  countries 
previously),  public  procurement  as  well  as  creating  fora  and  networks  for 
sharing  experience.  More  cases  showing  practices  and  examples  of  local  and 
regional authorities’ initiatives in fair trade have been collected in parallel to the 
current study and have informed its conclusions.  

3.1.1 The 'Fair Trade fair' by the city of Dortmund  

The  City  of  Dortmund  organises  the  tradeshow  Fairtrade  and  Friends  on  an 
annual  basis.  In  2014,  the  show  acted  as  a  presentation  platform  for 
128 exhibitors  across  sectors  such  as  accessories,  household  goods,  arts  and 
crafts,  food,  sustainable  tourism,  recycling,  among  others.  The  show  aims  to 
promote  awareness  on  manufacturing  conditions  and  introduce  consumers  to 
‘new’ FT products such as clothes, flowers, cosmetics, and wood.113

3.1.2 South West England 

Cities,  such  as  Bristol  and  Newcastle,  in  England  are  appointing  fair  trade 
officers to city councils tasked with supporting the implementation of fair trade 
policies  and  practices,  and  promoting  fair  trade  in  their  community.  In  South 
West  England,  there  is  an  annual  conference  of  town  to  share  ideas  and 
challenges on issues, including fair trade. The Fair Trade Foundation is lobbying 
for  regional  fair  trade  coordinators  to  be  appointed,  to  support  organisation, 
activities,  and  awareness  raising  across  sub-national  authorities  of  England.114
Wales was first fair trade nation and Scotland followed after declaring itself also 
fair trade Nation. 

3.1.3 Hannover – Poznan

Hannover in Germany is implementing several activities to encourage awareness 
and  consumption  of  fair  trade  products  in  its  community.  On  a  national  level 
Hannover  is  part  of  the  Netzwerk  Faire  Beschaffung  (Network  for  Fair 
Procurement)  and  participates  at  meetings  of  cities  taking  part  in  the  biannual 
competition  Hauptstadt  fairer  Handel  (Fair  Trade  capital).  At  an  international 
level,  Hannover  participates  at  Procura+  and  occasionally  takes  part  in 

113 Fair and Friends, trade fair for fairtrade. http://www.westfalenhallen.de/messen/fair/en/. 
114 Fair Trade Foundation, Annual Report 2013, Goal 2. 

29

international  Fair  Trade  Town  meetings.  As  part  of  its  fair  trade  activities, 
Hannover  also  supports  its  twin  towns  with  the  promotion  of  fair  trade.  In 
2012/2013,  the  city  held  a  meeting  with  representatives  from  Malawi,  Poland, 
Hungary,  the  Czech  Republic,  and  the  UK  to  raise  awareness  about  the 
Millennium  Development  Goals,  using  Malawi  as  an  example.  The  subject  of 
fair  trade  as  an  instrument  for  sustainable  development  and  reaching  the 
Millennium Development Goals (MDGs) has been gaining ground in academic 
and policy-oriented literature as well as EU policy documents.115 As seen earlier, 
the  increased  contribution  of  Central  and  Eastern  European  countries  to 
development assistance and partnership with developing countries has increased 
awareness  of  the  issues  faced  and  to  an  extent  increased  support  for 
sustainability  initiatives,  including  fair  trade.  Particularly,  the  relationship 
between  Hannover  (Germany)  and  Poznan  (Poland)  provides  an  excellent 
example of innovative cooperation in the field. Hannover took the lead in an EU 
project  called  Aware&Fair  and  in  this  capacity  provided  guidance,  education 
and  volunteers  for  its  twin  town  Poznan.  In  2012,  the  city  of  Poznan  was 
running  a Fair  Trade  campaign  as  part  of  the  Aware&Fair  project  and  became 
the first Fairtrade Town in Poland in December of the same year.  

3.1.4 QuattroPole 

QuattroPole  is  a  trinational  network  of  four  cities:  Luxembourg  (LU), 
Metz (FR), Saarbrücken and Trier (DE). As the longest distance between any of 
the cities is an hour, the international alliance aims to encourage cooperation and 
collaboration across borders, and to implement innovative projects between the 
cities.  All  four  cities  were  awarded  the  status  of  Fairtrade  Town  between  the 
years of 2009 and 2012. Each city has appointed a working group, which works 
together with volunteer active clubs and initiatives, and their sister groups in the 
other  cities  to  launch  biannual  fair  trade  events116.  These  groups  are  active  in 
promoting citizen participation in these activities, and engaging local authorities 
and organisations in awareness raising for fair trade.  

QuattroPole  is  a  unique  cross-border  alliance,  which  demonstrates  the 
importance of collaboration in promoting and sustaining fair trade activities.  

115 Dammert, Ana C. and Mohan, Sarah (2014). A Survey of the Economics of Fair Trade, IZA DP No. 8167, 
May 2014; Cremona, Marise and Duran,  Gracia  Marin  (2013).  Fair  Trade  in the  European Union:  Regulatory 
and institutional aspects, in: Granville, Brigitte and Dine, Janet (eds). The Processes and Practices of Fair Trade: 
Trust, Ethics and Governance, Routledge. 
116 Fairtrade Initiative Saarbruken, Städtenetz QuattroPole wird 'QuattroFair'. http://www.faires-
saarbruecken.de/fairwaltung/quattropole_wird_quattrofair  

30

4. Main barriers

Turning to the factors that deter the development of fair trade, the interviews are 
very informative about the barriers which persist on the level of LRAs, national 
level and the treatment of fair trade in general.  

In the UK, for example, where a substantial number of fair trade-certified towns 
already  exist,  the  difficulty  is  to  coordinate  across  fair  trade  towns  in  order  to 
achieve wider fair trade region status.117 This difficulty has also been reiterated 
for  France  and  Germany.  The  challenge  in  this  case  lies  in  the  variation  of 
involvement  across  towns  and  existing  platforms  for  cooperation  among  local 
authorities. Currently the exchange of fair trade experiences and shared practices 
varies substantially between and within countries. Often the existing forums are 
driven by the activities of the Fair Trade Towns campaign and the International 
Fair Trade Towns conference. In light of this, the role of Fair Trade actors is to 
facilitate  the  spread  of  the  best  practices  which  happen  on  the  ground  with  a 
primary  focus  on  regionalisation.  A  number  of  suggestions  have  been  put 
forward  for  possible  platforms  to  incentivise  this  transfer  between  and  across 
countries, as well as lessons from less successful attempts.  

This leads to a second challenge highlighted by interviewees – limited capacity
at  the  local  and  regional  levels.  On  one  hand,  there  is  an  overall  lack  of 
personnel in the smaller authorities and when fair trade activities are undertaken 
in parallel to key activities, the resources that could be allocated for support to 
fair trade are limited. In the cases where such capacity exists and especially in 
the cases when volunteers are available to support fair trade promotion, there is 
limited  knowledge  on  fair  trade  within  the  authorities  and  lack  of  guidance  on 
how  to  run  associated  tasks.  Examples  for  this  barrier  are  ample  from  the 
experience  of  Poland,  Czech  Republic  and  Bulgaria,  but  also  the  UK,  where 
delivering capacity building support to individuals and groups of LRAs has been 
seen as a priority.118  

On  a  general  level  the  other  complications  that  have  been  identified  to  slow 
down  LRAs’  involvement  in  fair  trade  range  from:  i) existing  historical
background  in  Central  and Eastern  Europe  (see  below);  ii) lack  of  data  and 
quality and comparability of data with regard to operating organisations; iii) lack 
of a clear position / message on the part of some national governments and EU 
institutions;  as  well  as  iv)  a  perception  that  support  for  fair  trade  can  be 
perceived as interference in the market.  

117 Interview 1 and 2. 
118 Interview 2. 

31

This is further reviewed below in the demand-associated challenges. One of the 
explanations put forward is the fact that Central and Eastern European countries 
which  have  little  or  no  historical  background  of  colonial  relations  with  the 
developing countries do not feel as responsible for stimulating development.119
The increasing number of legislative and non-legislative documents adopted by 
the countries in CEE is counteracting this status quo.  

Another challenge which has developed through historical reasons is the process 
through which grassroots initiatives and NGOs are formed in the former Soviet 
Union  and  Communist-led  countries.  Due  to  restrictions  on  the  freedom  of 
association,  existing  non-governmental  organisations  have  been  created  to 
oppose  authorities  rather  than  to  support  a  specific  cause  especially  related  to 
sustainable development.120  

Additional barriers to support for fair trade have been put forward by almost all 
interviewees.121 Both LRAs and fair trade associations and foundations perceive 
the need for a clear message on the part of some national governments as well as 
EU  institutions  that  fair  trade  promotion,  production  and  consumption  is  not  a 
parallel  activity.  It  can  and  should  be  part  of  the  regular  activities  of  the 
authorities  and  it  can  contribute  to  local  and  regional  economic  development. 
This links to the deterring factors highlighted in the introduction that a common 
message of support for fair trade is essential, in addition to linking it explicitly 
to sustainable development.  

At  the  same  time,  such  support  for  fair  trade  as  the  means  to  economic 
development highlights the key challenge to developing an EU-wide framework: 
needing  concrete  data  on  the  impact  of  fair  trade  on  the  EU  regions  and 
developing  countries  (see  Policy  recommendations).  Below  we  briefly  outline 
the concerns indicated vis-à-vis supply and demand-side barriers.  

4.1 Supply side 

On  the  supply  side,  the  main  barrier  identified  has  been  the  availability  and 
range  of  existing  commodities  that  are  fairly  traded.  This  remains  a  challenge 
not only in Central and Eastern Europe, where there are few/no products that are 
certified  domestically,  but  also  in  fair  trade  leaders.122  This  is  especially 
important  for  public  procurement.  When  LRAs  decide  to  adhere  to  ethically 
traded commodities, it has sometimes been the case that no suppliers providing 

119 Idem. 
120 Interview 4.  
121 Interviews 1, 2, 3, 4 and 5. 
122 Interviews 1, 2, 4, 5 and 6. 

32

such  alternatives  exist.  Even  when  public  procurement  rules  are  updated  to 
cover  products  which  are  sourced  in  a  socially-  and  environmentally-friendly 
way,  the  major  problem  is  the  existence  of  trade  across  some  of  the 
commodities. This could be targeted by improvements in the supply chain, data 
exchange  on  the  supply  and  demand  of  products  and  better  networks  among 
LRAs, which have been reviewed in the recommendations.  

A  second  barrier  which  has  been  highlighted  is  the  lack  of  resources  by  local 
and regional authorities, especially intensified in some of the poorest regions of 
the  EU.  Research  shows  that  most  of  the  starting  and  bridging  phase  financial 
resources  for  fair  trade  support  have  been  funded  by  EU  projects.  As  in  the 
previous  case,  this  is  intensified  for  LRAs  in  Central  and  Eastern  Europe.  For 
example, the interviewee from the Fair Trade Association in Poland underlined 
that there has been a shift in EC rules for tenders for grants towards a preference 
for  larger-scale,  cross-country  projects.123  This  tendency  has  led  to  cutting  out 
many  small-scale  projects  as  well  as  to  the  need  for  greater  capacity  for  the 
organisations to be able to lead large ones. As a result, access to resources for 
smaller  organisations  has  become  more  difficult.  On  one  hand,  this  has 
stimulated the identification and creation of partnerships, but on the other hand 
it has dis-incentivised smaller scale initiatives. This stimulates partnerships but 
according to stakeholders, these take years to build and require capacity.124 One
good  recent  example  for  EU  support  includes  the  Development  Education  and 
Awareness Raising (DEAR) channelled through the thematic  programme Non-
State Actors and Local Authorities in Development (the NSA-LA programme). 
This  programme,  based  on  Article  14  of  the  Development  Cooperation 
Instrument, aims to co-finance initiatives proposed or carried out by civil society 
organisations and local authorities.125 A number of initiatives organised around 
the  call  for  proposals,  such  as  the  4th  Partnership  Fair  on  DEAR  by  Trialog,
have  facilitated  partnerships,  cooperation,  learning  and  exchange  at  an 
international level for joint projects.126 The Trialog organised Partnership Fairs 
have  also  been  funded  by  the  EC  as  well  as  the  Austrian  Development  Fund. 
Another  example  of  pooling  resources  across  the  region  has  been  the  project 
'From  overconsumption  to  solidarity'  implemented  by  the  Polish  Fair  Trade 
Association,  along  with  partners  from  Hungary,  the  Czech  Republic  and 
Slovakia, funded by the Visegrad Fund and the EC. The goal of the project is, 
on  one  hand,  to  raise  awareness  on  the  global  effects  of  over-consumption  of 
natural  resources  in Europe;  and  on  the  other  hand,  to  stimulate  reflection  and 
critical thinking by citizens in the countries of the Visegrad Group on the impact 

123 Interview 4. 
124 Idem.  
125 Development education and awareness raising – funding.
126 TRIALOG  (2013).  4th  Partnership  Fair  on  Development  Education/Awareness  Raising  (DEAR), 
http://ocud.es/sites/default/files/PF2013_Description.pdf.

33

of excessive consumption  of goods in Europe on socio-economic development 
in the Amazon region.127  

4.2 Demand side

With  regard  to  public  procurement  by  LRAs,  rules  and  their  implementation 
remain  a  major  barrier  on  the  sub-national  level  in  particular  and  once  again 
with  heightened  effects  on  countries  where  fair  trade  organisational  structures 
and processes are currently picking up.128 The lag of the implementation of the 
EU Directive in public procurement is often due to limited capacity of the LRAs 
and  this  could  be  addressed  with  additional  practical  guidance  (see  Policy 
recommendations).  Clear  and  uniform  procurement  assistance  will  also  be 
essential  in  limiting  the  perception  that  procuring  fair  trade  products  leads  to 
increased costs for the LRAs.129 Finally, a barrier to uptake of fair trade public 
procurement  can  be  found  in  the  low  level  or  lack  of  engagement  of  local 
authorities  as  well  as  political  differences  among  stakeholders  on  a  local, 
regional and national level.130  

The  main  barrier  to  increased  consumption  of  fair  trade  products  is  low 
recognition or interest from the consumers.131

While sales of ethically produced, fair trade products in the UK have increased 
substantially  over  the  past  years,  there  is  a  lot  less  consumer  uptake  in  the 
countries of Central and Eastern Europe. The latest Eurobarometer reports that 
respondents,  especially  those  in  'northern  and  western  Member  States  are 
generally more likely to be prepared to pay more for products from developing 
countries'.132 Overall at the EU level, the survey shows few shift in the opinion 
of European citizens, with the exception of  Cyprus, Austria and Croatia where 
significantly  more  respondents  are  ready  to  pay  more  for  groceries  from 
developing countries.133  

According to other public opinion research, in Romania, for example, there is a 
very  low  consumer  interest  in  fair  trade  products  'due  mainly  to  the  lack  of 
information'.134 Fair trade products have been 'perceived more as exotic objects, 

127 'From overconsumption to solidarity', http://vedegylet.hu/o2s/index_en.php?page=info. 
128 Interview 1, 4.  
129 Interview 2. 
130 Interview 2, 4. 
131 Interview 1. 
132 European Commission (2015). Special Eurobarometer 421, European Year for Development – Citzens' Views
on Development, Cooperation and Aid. Report, January 2015, 
http://ec.europa.eu/public_opinion/archives/ebs/ebs_421_en.pdf, page 42.  
133 Idem.  
134 Popa, Claudia (2012). Mişcarea Fair Trade se simte şi în România,

34

especially  handicrafts  and  non-food,  and  that  they  have  a  story  to  satisfy  the 
principles  of  [the]  fair  trade  system  does  not  greatly  influence  the  purchase 
decision'.135 The consumer market for fair trade products also seems to pick up 
slowly  since  decisions  are  mostly  based  on  pricing.136  This  trend  is  being 
counteracted  by  clearer  labelling  about  the  sources  of  production  as  well  as 
increasing demand for natural or organic products and fair trade products can be 
associated  with  that  group.  A  practical  way  to  address  this  is  a  clearer 
presentation  of  fair  trade  items,  their  production  and  impacts  on  developing 
countries. As identified in one of the interviewee responses, there is a need for 
'better  connection  of  products  with  their  producers,  more  particularly  the  way 
they  have  been  produced  –  better  marking  of  products  i.e.  nobody  will  buy  a
product labelled 'made by children'.137

Two  additional  concerns  link  to  the  recognition  and  interest  of  consumers, 
namely  that  fair  trade  products  are  seen  as  an  NGO  initiative  and  related  to 
particular brands and that fair trade products are limited in overall supply. These 
concerns  are  not  surprising  giving  the  low  level  of  fair  trade  promotion  and 
awareness-raising activities. The interviews clearly highlight the benefit of more 
joint activities and 'EU projects [which] work as ice-breakers and initiation for 
Central and Eastern European towns that can work together with more advanced 
western EU countries.'138 Below we outline some additional recommendations to 
address this.  

http://incomemagazine.ro/articole/miscarea-fair-trade-se-simte-si-in-romania. 
135 Idem.  
136 Interview 4. 
137 Interview 5. 
138 Interview 5. 

35

5. Policy recommendations

It  is  clear  from  the  foregoing  that  the  combination  of  policies,  directives, 
framework  structures,  incentives,  and  local-level  initiatives  represents  a 
formidable  and  ambitious  set  of  goals,  however  loosely  defined.  At  the  same 
time,  the  drive  for  policy  coherence  across  the  economic  and  development 
spectrum  to  embrace  the  objectives  of  fair  trade,  sustainable  development, 
ethical  considerations  and  international  development  has  to  be  recognised  as  a 
vast undertaking.  

We  then  need  to  consider  the  current  economic  policy  context  across  the  EU. 
Budgets are being held down, with much of the burden for adjustment falling on 
regional  and  local  authorities,  while  individuals  and  companies  are  reducing 
their  debt  burdens,  consolidating  and  scaling  back.  To  be  sure,  as  pointed  out 
earlier,  this  represents  an  opportunity  to realign  domestic  and  external  policies 
to deliver on the coherence agenda. One of the issues that needs to be considered 
in this context, therefore, is whether LRAs are in a position to significantly scale 
up their fair trade programmes in the current situation. 

In  structuring  our  policy  recommendations,  we  have  given  primacy  to  the 
importance of EU institutions. They will need to orchestrate the process, even if 
funding decisions are left to national governments and operational decisions are 
left  to  LRAs.  By  orchestration,  we  mean  essentially  shaping  the  way  in  which 
the  system  develops  along  the  lines  of  coherence  identified  in  the  various 
initiatives. This is easier said than done, because of the interconnectedness and 
interdependence  of  issues.  This  creates  a  circular  dynamic  that  could  be 
mutually  reinforcing,  if  well  designed,  or  mutually  destructive  if  not.  For 
example,  information  and  data  is  critical  to  good  policy-making,  but  in  the 
situation  that  currently  prevails,  is  patchy,  inconsistent  across  regions  and 
systems,  and  not  always  available  on  time.  Implementing  strategies  in  this 
context is difficult at best and could be counterproductive at worst. Yet, to create 
effective information systems is expensive and time consuming, and cannot be 
justified  unless  the  long  term  benefits  outweigh  the  costs,  and  unless  the 
resulting model succeeds in its major objectives. Everything therefore depends –
if  a  Europe  wide  agenda  is  to  develop  –  on  the  scale  of  commitment  and
ambition  on  display  at  the  European  level.  It  is  for  this  reason  that  the  study 
begins with recommendations relating to the top of the pyramid. 

37

5.1 EU-level policy recommendations 

5.1.1 Clarity on the level of ambition  

Essential for the design of an effective fair trade, ethical and sustainable agenda, 
and to determine the policy ecosystem within which it will ultimately operate.  

- More so when we consider that the level of ambition in applying fair trade
principles  has  not  been  clearly  identified  in  terms  of  how  far  it  will
eventually extend across the system in terms of product areas covered and
geographic spread, and how far it will extend down the parallel routes of
sustainability  and  ethical  practices.  The  level  of  ambition  will  thus
determine the extent to which concepts and objectives would need to be
clarified and defined. This is especially relevant in terms of setting up a
potential  common  labelling  regime.  According  to  previous  studies,  such
regimes  can  take  different  forms:  i)  voluntary  versus  compulsory;
ii) replacing existing national and private labels versus working alongside
other  schemes;  and  iii)  minimum  standards  versus  more  ambitious
criteria.139

- With  clarity  on  this  issue  in  place,  it  would  then  be  possible  to  place
piecemeal  objectives,  such  as  the  public  procurement  directive,  or
labelling  or  certification  procedures  for  particular  products,  into  context
and to position them as milestones on a much longer road map.

- Why we are doing all this would also become clearer to EU citizens, who
could then identify with the broader social, environmental and economic
model  and  their  place  in  it.  Currently,  the  approach  appears  fragmented
and  to  some  extent  disjointed,  and  to  that  extent  difficult  to  follow.
Generating  acceptance  for  this  overall  idea  would  constitute  part  of  the
process of defining the level of ambition.

5.1.2 Making the economic and business case 

From the literature review and from some of the interviews, it appears that the 
economic  and  business  case  in  favour  of  an  ambitious  fair  trade  agenda  is 
insufficiently developed.  

- The  foremost  challenge  will  come  from  those  who  would  question  the
economic logic of this whole policy endeavour, particularly in a time of
austerity, high unemployment and debt reduction. It could also come from
established  businesses  –  both  within  the  EU  and  beyond  –  that  cannot
manage the transition or do not agree with the model.

139 Ibid. 2 at 177. 

38

- Fortunately there is an existing set of analytical tools that can be used to
explore this issue in considerable detail. In brief, we need to establish that
it  is  possible  to  pursue  a  fair  trade,  sustainability  and  ethical  agenda
without  compromising  on  costs,  quality  or  competitiveness,  while  being
assured of the reliability and durability of the system.

there  will  almost  certainly  be  short- 

- We  would  then  need  to  assess  this  across  product  categories  and  with
specific  reference  to  markets  and  their  structures.  The  employment
dimension  will  be  an  important  part  of  this  analysis,  both  in  terms  of
effects  within  European  markets  and  with  reference  to  emerging
economies.
- Although 

to  medium-term
adjustments to be considered, the way that the EU coordinates the design
of  a  policy  ecosystem  (or  universe),  and  the  way  it  is  actually
implemented  through  a  decentralised  network  of  LRAs,  could  ensure  a
long-term outcome that is positive in economic, social, environmental and
political terms. More so when one considers the stabilising effects of fair
trade  (and  market  access)  policies  on  emerging  economies  on  Europe’s
southern  and  eastern  periphery,  and  on  migration  and  poverty  more
generally.

5.1.3 Improving policy coherence 

As part of the process of clarifying the level of ambition that the EU is aiming 
for more generally, a number of interrelated policies need to be accommodated 
in this design. Amongst the more prominent, when considering the complex mix 
of  issues  involved  in  the  fair  trade,  ethical  and  sustainability  agenda,  are  the 
following: 

- External action
- Trade policy
- Sustainable consumption and production policies
- Climate action policies
- Common Agricultural Policy
- Development strategies and commitments, especially related to the post-

2015 development agenda

5.1.4 Reconciling regulatory and policy priorities 

Coherence in approach is emphasised in the various policy endeavours covered 
in  this  study.  However,  greater  attention  needs  to  be  given  to  reconciling  this 
idea  of  coherence,  which  after  all  hopes  to  harness  fair  trade,  sustainability, 
ethical practices and external policies to a common purpose, to areas of possible 

39

policy inconsistency, or friction. Broadly speaking, possible inconsistencies can 
be found in the following areas: 

- WTO  rules,  particularly  with  respect  to  the  principle  of  National
Treatment,  market  access  commitments,  and  for  labelling  and  product
standards and process requirements.

- Competition  policy  rules  of  the  EU  and  member  states,  and  their

-

international implications. 
Investment rules (an issue that will become more important if and when
the Transatlantic Trade and Investment Partnership, TTIP, is agreed with
the  US.  In  this  situation,  it  may  be  necessary  to  negotiate  an  LRA
exemption from TTIP commitments on investment).

There  could  well  be  other  issues  that  have  not  been  flagged  here.  As  a  policy 
recommendation,  this  study  would  suggest  a  systematic  evaluation  of  where 
these possible points of friction lie, and how the fair trade agenda, as it expands 
and becomes more entrenched, can be reconciled with their provisions. In terms 
of trade agreements – whether multilateral, bilateral or regional – whatever fair
trade  policy  model  is  adopted  by  the  EU,  would  require  reciprocal  recognition 
and  would  need  to  be  accommodated  within  the  structure  of  any  such 
agreement, as with TTIP mentioned above. Developing the capacity to negotiate 
trade  agreements  that  recognises  a  supportive  policy  environment  (with 
reference  to  development,  sustainability  or  any  other  agreed  consideration) 
would  be  important  in  the  broader  scheme  of  things  if  friction  during 
implementation is to be minimised. 

A more or less permanent mechanism, or advisory service, would also need to 
be in place to help LRAs and national governments identify problems and find 
solutions.  Here  again,  we  need  to  acknowledge  that  this  could  be  quite  an 
expensive  service,  particularly  if  a  permanent  advisory  mechanism  is  to  be 
established  which  is  capable  of  responding  quickly  to  queries  and/or  to 
providing research or legal advice and support.  

5.1.5 A gap analysis of the policy structure 

If  the  EU  is  to  support  an  enabling  environment  for  the  spread  of  fair  trade
practices through LRAs and beyond, identifying where and how the system can 
be shored up would be an important contribution. Perhaps the issue of funding 
and financing could be considered in this context. One possibility, for example, 
is  if  part  of  the  external/foreign  aid  budget  could  be  used  to  support  LRAs  in 
organising  their  fair  trade  strategies,  providing  some  relief  for  LRA  budgets. 
Looking  beyond  this,  perhaps  there  is  a  way  of  using  the  funding  of 
development  banks  (domestically,  the  EBRD,  and  internationally  the  World 

40

Bank or regional development banks) to support some parts of the programme. 
From the material reviewed in this study, this area does not appear to be a major 
concern at the moment, so it is really just flagged as something to be considered 
when designing a complete ecosystem.  

5.1.6 Monitoring, information and data flows 

From the literature reviewed and the other material evaluated during this study, 
it is clear that the lack of information and data is a fundamental weakness that 
needs  to  be  addressed  as  a  priority.  Monitoring  is  also  impossible  without 
adequate or appropriate information flows. Not only is it impossible to compare 
models  across  countries,  or  even  within  countries  (especially  for  ‘bottom-up’ 
systems),  it  is  difficult  to  make  an  economic  or  business  case,  or  to  evaluate 
options in the absence of comparable or usable data. It is equally difficult to try 
and  establish  best  practice  across  systems  when  the  criteria  and  information 
differ  substantially.  As  a  consequence,  the  contribution  that  experience  and 
operational practice in different parts of the system can make to learning about 
what works and what does not, is possibly lost. This in turn impedes the ‘spread 
effect’ of good examples, but equally means that mistakes can be repeated. An 
example  can  be  seen  in  the  almost  complete  absence  of  information  on  the 
ground  effects  of  fair  trade  practices  (of  whichever  type)  on  income  levels  of 
farmers  in  developing  countries,  or  indeed  on  any  other  aspect  of  its  wider 
impact. Answering this question is surely central to the debate on whether fair 
trade  works  or  not.  The  same  is  largely  true  of  environmental  monitoring. 
Information and data, together with effective monitoring mechanisms, can thus 
provide  the  key  inputs  for  every  other  phase  of  the  policy  and  operational 
agenda.  From  formulating  strategies,  through  evaluating  options  to  making  a 
strong  economic  and  business  case,  all  of  these  would  depend  on  information 
flows.  

It  would  also  be  central  to  any  strategy  that  seeks  to  promote  experience-
sharing,  awareness  raising,  or  policy  advocacy.  Equally,  an  effective  and 
efficient  system  of  monitoring  and  data  collection  would  help  create 
comparative  tables,  or  indicators,  on  performance  levels  that  would  in  turn 
support  the  efforts  of  LRAs  to  learn  from  one  another.  Incentives  through  the 
use of awards or some form of recognition could form part of this arrangement. 

This study would therefore highlight the importance of creating an effective data 
collection  and  management  system  that  would  feed  the  evaluation,  monitoring 
and  policy  making  process.  Although  this  could  be  expensive,  it  would  be 
entirely  justified  under  the  circumstances,  and  would  have  a  significant 
multiplier effect on the overall effectiveness of the fair trade agenda. 

41

5.2 National-level recommendations 

Many  of  the  issues  mentioned  in  the  section  above  would  equally  apply  to 
national-level responsibilities, but are perhaps more cost effective if coordinated 
at the EU level. 

What  is  striking  from  the  results  of  this  study  is  how  differentiated  and 
fragmented is the range of practices within the European system. Much of this is 
due  to  the  way  in  which  individual  countries  have  developed  their  economic 
models,  with  bottom-up  and  top-down  approaches  followed  in  different  places 
in different ways and following different trajectories.  

In this situation, the broad approach of this study is to recommend that the EU 
create  the  frameworks  (policies,  monitoring,  coherence),  and  define  the 
principles and scale of ambition, while national governments would provide the 
resources, support, and policy guidance and advice.  

The study recognises that while cross-border lessons can and should be learned, 
the  first  step  for  LRAs  is  to  learn  from  each  other  from  within  their  systems. 
There are cultural and political reasons for this and, if properly managed, they 
can be a considerable strength.  

For national governments that have limited or insufficient capacity (either at the 
national  or  LRA  levels),  the  challenges  are  somewhat  different.  They  not  only 
need to create consumer awareness and the policy climate for a  successful fair 
trade  strategy,  but  have  to  encourage  local  businesses,  together  with  importers 
and exporters, to work within this framework. Demonstrating the clear benefits 
of  fair  trade,  environmental  sustainability  and  ethical  considerations  becomes 
central to the process, but can be expensive. In these circumstances, a great deal 
of groundwork and experience sharing would be needed, and the benefit of EU 
institutions’ involvement to support the process is evident.

National  governments  therefore  have  a  significant  potential  role  in  awareness 
raising, experience-sharing and providing policy and operational advice. Ideally, 
they  should  also  back  this  with  financial  support,  or  through  other  allowable 
incentives  or  subsidies.  There  is  considerable  flexibility  in  the  rules  of  the  EU 
and the WTO that allow for this (subject to some conditions) particularly if the 
support  is  part  of  a  sustainability  (social,  environmental  or  commercial), 
regional or development agenda. 

In particular we can expect them to act in the following areas: 

42

- Policy  dissemination  and  a  business  dialogue:  to  advise  LRAs  and
other regions or cities of the possibilities that exist in this area in terms of
business  opportunities  (either  as  consumers  or  producers),  consumer
benefits, etc. Also, to advise business of what is going on and of how this
could  alter  market  strategies.  If  the  fair  trade  agenda  is  to  become
mainstream  policy,  then  the  dissemination  of  the  implications  of  this
approach would need to be coordinated through national governments.

- Consultations:  the  transition  to  a  fair-trade  centred  economic  model
requires careful handling. Consultation mechanisms provide governments
with  ideas  about  how  best  to  do  this,  ideas  about  the  complementarity
between  top-down  and  bottom-up  approaches,  and  ideas  about  LRAs
working  together  in  managing  contracts.  Consultation  procedures  also
help to build a consensus within society and to minimise tensions.

- Sharing best practice: regions learn from each other much more readily
than  from  national  governments.  Sharing  across  regions  (initially  within
one  country,  but  then  more  broadly)  would  make  sense,  and  would  be
easier to organise. National governments would therefore have an interest
in collecting data, monitoring and evaluating performance in this area.

- Advice  and  guidance:  relating  to  the  working  of  the  procurement  rules
and  how  these  can  be  best  managed,  particularly  with  reference  to
applying  green,  social  or  ethical  standards.  National  governments  and
LRAs  would  be  the  first  to  admit  that  public  procurement  strategies  can
be better and more efficiently managed.

- Consumer awareness and public education: consumers respond best to
messages  that  are  couched  in  their  own  languages  and  which  contain
cultural  and  social  references  that  are  locally  understood.  Building
consumer  sentiment  and  attitudes  is  thus  best  left  to  local,  regional  and
national governments.

- Providing  assistance:  national  governments  are  well  aware  of  what  can
be  provided  within  state  aid,  WTO  and  competition  rules,  whether  in
terms of grants and subsidies, or in terms of tax concessions or research
support.

- Adjustment  assistance:  the  application  of  fair  trade  rules  –  as  with
environmental  and  ethical  standards  –  can  entail  significant  adjustment
costs which national governments can meet through a variety of methods
(tax  concessions,  subsidies,  etc.).  National  governments  are  in  the  best

43

position to assess these and to design adjustment programmes that address 
local and regional needs. 

- Capacity  building:  in  the  current  economic  context,  most  LRAs  are
struggling to meet existing obligations without assuming new costs for an
ambitious  fair  trade  agenda.  National  governments  can  assist  LRAs
develop  the  institutional  and  organisational  capacity  that  help  deliver  a
pro-competitive fair trade model that is ethical, sustainable and equitable.
This  is  an  ideal  long-term  outcome  that  national  governments  would  be
interested in achieving.

- Research support: national governments often have significant research
budgets  and  facilities,  many  of  which  are  looking  at  environmental  and
sustainability issues. These can be harnessed, too.

5.3 LRA level recommendations 

Taking into account the variable capacity, experience and interest, in order for 
LRAs to be able to support fair trade a whole range  of national and EU policy 
measures have to be put in place. Some of the options have been outlined above 
and the role of LRAs is to take advantage of the policy framework created either 
at  the  national  or  EU  level,  and  create  operating  conditions  that  effectively 
exploit  these  opportunities  and  make  the  most  use  of  public  procurement 
provisions, etc. 

At  one  level,  LRAs  need  to  use  their  limited  –  and  in  some  cases  declining  –
resources  to  promote  development  and  economic  regeneration  while  managing 
their  existing  responsibilities.  If  the  EU’s  strategy  to  place  fair  trade  (plus 
environmental and ethical concerns) at the heart of the development process is 
to be addressed, then a number of associated issues need to be dealt with.  

As a first step, this study would therefore recommend that LRAs be advised – if
they  have  not  already  done  so  –  to  adapt  their  structures,  systems  and
organisational  methods  to  take  full  advantage  of  the  opportunities  in  this  area. 
The possibilities created by the procurement directives would perhaps be a good 
starting point.  

This would involve, for example, some of the following: 

- Establishing the right systems to take advantage of the evolving EU and
national policy frameworks being developed around the fair trade agenda;

44

- Clarifying  criteria  for  qualifying  for  certain  labels  and  promoting

transparency in sharing information regarding criteria;

- Monitoring labelling initiatives;
- Learning from other LRAs on what works and what does not;
- Developing the skills and competencies needed, particularly in the public

procurement process, to ensure that they achieve value for money;

- Developing  the  monitoring  and  evaluation  structures  needed  to  assess
performance  and  to  form  a  platform  for  further  adjustments  to  their
strategies;

- Promoting consumer awareness within society, institutions and business,

to support the demand side of the equation;

- Maintaining and promoting consumer confidence in fair trade labels;
-

Identifying the skills and professional requirements for the expanding job
opportunities that will arise;

- Supporting  infrastructure  development  –  social  and  physical  –  that  will

support the achievement of policy objectives.

This  is  obviously  only  an  indicative  and  illustrative  list.  Many  LRAs  will 
already be far advanced down this road, and could easily help others. 

5.4 Changing the narrative 

The main recommendation links to the current treatment and presentation of fair 
trade. Even though research confirmed that fair trade is an 'essentially voluntary, 
dynamic mechanism that develops along with societal and consumer awareness 
and  demands'140,  both  desk  research  and  interviews  highlight  the  changing 
nature of fair trade and the need to parallel these developments by also altering 
current discourse on the topic. In light of the economic and financial crisis, local 
and  regional  authorities  throughout  Europe  are  still  facing  trade-offs  between 
various  activities  due  to  limited  budgets.  Particularly  in  Central  and  Eastern 
Europe, allocation of resources to supporting fair trade has not been prioritised.  

The  existing  practices  clearly  show  that  some  LRAs  have  extended  their 
approach  beyond  awareness  raising  and  the  labelling  initiative  and  have  taken 
steps  to  integrate  fair  trade  principles  across  all  sectors  and  activities.  This 
highlights  the  added  value  of  linking  fair  trade  principles  to  jobs  and  growth 
agenda  and  in  particular,  in  the  key  drivers  of  local  and  regional  economic 
performance.  In  reshaping  the  concept  of  fair  trade  and  the  nature  of  the  fair 
trade  debate,  the  question  to  be  addressed  is  how  local  and  regional  economic 

140 Communication from the Commission to the Council, the European Parliament and the European Economic 
and Social Committee - Contributing to Sustainable Development: The role of Fair Trade and non-governmental 
trade-related sustainability assurance schemes, COM(2009) 215 final. 

45

development can boost economic activity and alleviate poverty in the EU, their 
territory and partner countries.  

In  order  to  achieve  this,  one  has  to  look  at  the  micro  dimension  of  local 
economic  development,  such  as  the  drivers  and  causes  of  the  behaviour  of  the 
key  economic  actors.  In  the  case  of  fair  trade  promotion,  these  include  local 
companies,  international  organisations,  universities  and  other  educational 
institutions, industrial associations, NGOs and government agencies both in the 
EU and in the exporting country. Globalisation but also the economic crisis has 
challenged  some  of  the  pre-existing  dynamics  and  any  reference  framework 
should look into the policy options from these different perspectives. 

Possible proposal for action is to integrate fair trade standards and principles in 
local development strategies, in order to remain sensitive to territorial and local 
specificities.  

5.5 EU-wide data collection and indicators 

In  the  medium  to  long  term,  the  EU  Member  States  would  benefit  from  more 
tangible evaluation of the impact of fair trade. This would provide the necessary 
information to bring forward the advantages of the different approaches to fair 
trade as well as highlight the benefits to LRAs. Such an evaluation will have to 
be based on an extensive data collection exercise throughout Europe and partner 
countries. The indicators will inter alia cover economic data on the size of the 
fair  trade  markets  such  as  the  number  of  companies  involved  in  fair  trade,  the 
number  of  jobs,  the  number  of  channels  and  affected  producers.  The 
development,  collection  and  monitoring  of  fair  trade  indicators  in  addition  to 
key  sustainability  ones  will  provide  the  basis  for  inter-regional  comparison 
across several dimensions:  

- Fair trade track record – lead indicators: number of Fair Trade Towns and
regions; number of fair trade organisations in the public register; presence
of subsidies;

- Awareness-raising  –  lead  indicator:  number  of  campaigns;  promotion  of

educational activities;

- Procurement – lead indicators: companies involved in fair trade; number

of producers and number of importers; number of products;

- Compliance  with  standards  –  lead  indicators:  compliance  with  ILO’s

DWA and CLS;

- Economic,  social  and  environmental  cohesion  –  lead  indicators:  Europe

2020 indicators.

46

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56 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 2. Fair Trade Towns in Europe

Country

UK
Germany148
Belgium (Flanders)
Austria
Sweden
Netherlands
Ireland
Italy
France
Norway
Luxembourg
Belgium 
(Wallonia + Brussels)
Spain
Finland
Czech Republic
Denmark
Poland
Estonia
Hungary, Bulgaria, 
Romania, Slovenia, 
Slovakia, Croatia, 
Portugal, Cyprus, 
Malta, Latvia,
Lithuania

First Fair Trade Town

Garstang
Saarbrücken
Gent, Voeren and Zwijndrecht
Wr. Neustadt
Malmo
Groningen & Goes
Clonakilty
Rome

Sauda
Differdange

Bruxelles-Ville
Cordoba
Tampere
Litomerice & Vsetin
Copenhagen
Poznan
Hiiu District

Date of 
declaration 
(dd/mm/yy)

No. of 
declared 
'Towns'

22/11/01
02/04/09
01/07/05
12/05/07
17/05/06
09/03/09
22/09/03
15/10/05
18/11/09
23/08/06
18/03/11

06/10/08
08/04/08
05/08/09
14/09/11
15/08/08
10/11/12
23/10/14

599
305
154
125
63
54
51
43
40
36
19

13
12
9
8
6
1
1

TOTALS

0
1607

148 Currently, 15 towns are undergoing the certification process. 

57

Annex  3. 
feedback

Interviewees  and  written 

Interview #1.  
Sergi Corbalán 
Executive Director, Fair Trade Advocacy Office 
Village Partenaire - Bureau 1, Rue Fernand Bernierstraat, 15, 1060 Brussels 
www.fairtrade-advocacy.org  

Interview #2.  
Adam Gardner 
Communities Campaigns Manager 
Tel.: +44 (0)20 7440 8552  

Interview #3.  
Wouter Boesman 
Noord-Zuidsamenwerking - Stad Gent 
Office of North-South Cooperation - City of Ghent  
Bezoekadres: Sint-Margrietstraat 9, 9000 Gent  
Correspondentieadres: Stadhuis, Botermarkt 1, 9000 Gent 
Tel.: +32 (0)9 223 29 53  
Fax: +32 (0)9 225 73 79 

Interview #4. 
Tadeusz Makulski 
Koordynator projektów 
Polskie Stowarzyszenie Sprawiedliwego Handlu
Członek Zarządu - World Fair Trade Organization - Europe
Tel.: +48 508 044 484 

Feedback #5. 
Antonin Tym 
Geothermal Project Manager 
City of Litomerice, Czech Republic 
Tel.: +420 725 095 137, 
Web: www.prvnigeotermalni.cz

Marcela Trejbalová  
marcela.trejbalova@gmail.com
Tel.: +420 737 222 681 

59

Feedback #6.  
Marion Köther 
Landeshauptstadt Hannover 
Agenda 21 - und Nachhaltigkeitsbüro 
Trammplatz 2, 30159 Hannover 
Tel.: +49 511 168 49838 
www.agenda21.de 

Ingmar Vogelsang  
Ingmar.vogelsang@hannover-stadt.de
phone: +49 511 168 41708 

Feedback #7.  
Fleurance Laroppe  
fl.fairylady@yahoo.de  

60

Annex  4.  Questions  asked  to  LRAs  and 
representatives

Overall question 

1. Why and how local and regional authorities (LRAs) promote Fair Trade?

Existing framework to regulate Fair Trade 

2. What is the existing framework covering Fair Trade on a national level?
3. What are some existing incentives /barriers on a national / European level

which affect your activities?

4. What  are  some  examples  of  legislation  and  policies  on  a  regional  and

local level?

5. Is the framework on EU level sufficient? What can be changed?

Modalities of support 

6. What kind of modalities of support exist (supply side and demand side) to

promote Fair Trade?

Main barriers 

7. What are the main barriers to Fair Trade on a local and regional level such

as legislation, lack of knowledge, availability of Fair Trade supply?

8. Are there some barriers that are particular to your activities?

Policy recommendations 

9. What specific incentives could be introduced in the EU and central and
eastern  Europe  in  particular  to  promote  interest  in  Fair  Trade  among
local and regional authorities?

10.How  can  Fair  Trade  in  public  procurement  be  further  promoted,  for
local

innovative  cooperation  options  between 

through 

instance 
authorities?

11.How can Fair Trade be further promoted in the context of the sustainable

and inclusive economy?

12.How  can  the  concept  of  Fair  Trade  regions  and  towns  be  further

developed and promoted?

13.How can Fair Trade be given a more prominent place on this development

agenda?

61

Annex  5.  Estimated  retail  sales  by
country149 

Country

2012 (in €)

2013 (in €)

Growth rate

Austria 

107,000,000

130,000,000

21%

Belgium 

85,837,221

93,209,845

9%

2,744,524

6,439,976

142%*

Czech Rep

Denmark

Estonia

Finland

France

Italy

Ireland

Germany

Latvia

Lithuania

71,836,714

81,080,778

1,061,938 

1,756,251

152,263,629

156,785,309

345,829,378 

354,845,458

65,435,059

76,355,675

174,954,927

197,296,405

533,062,796 

653,956,927

938,975

846,027 

975,010

842,258

13%

65%

3%

3%

17%

13%

23%

4%

-

16%

Luxembourg

8,319,391 

9,628,859

Netherlands

186,100,623

197,142,624

6%

Norway

65,450,834

68,441,0

Spain/Portugal

22,274,635

23,663,783

Sweden

178,951,375

231,668,646

9%*

6%

29%

Switzerland
UK

311,590,237
1,904,891,092

353,206,210
2,044,926,208

13%
12%*

* Growth  rate is  based  on  the  percentage  increase reported  in  the  local  currency, not the  value
converted  into  euros.

149 Annual report 2013/14 Unlocking the power of the many, page 19. Currently comprehensive data of fair trade 
retail sales as a percentage of overall sales are not available. 

62

How local and regional authorities in the 
EU support fair trade: 
Examples

Belgium - Aalst - Population: 83,347

Aalst’s Fair Trade Support Measures 
-fair trade wine Fairhills
-fair trade lunch at the city museum
-Week of the Fair Trade

During  several  work  visits  in  the  South  African  town  of  Worcester  –  to  which  the
municipality  of  Aalst  (Flanders,  Belgium)  is  twinned  since  2012  –  Aalst  became
acquainted  with  Fairhills,    the  largest  fair  trade  wine  project  in  the  world  which 
currently helps support over 2 000 people in South Africa, Chile and Argentina. 

Fairhills in South Africa 

In 2005 Origin Wine and the employees of the Du Toitskloof Cooperative established 
the internationally accredited Fairhills Fairtrade project in Rawsonville. The aim of the 
Fairhills Association is to create revenue through their wine brands, which will enable 
them  to  uplift  the  people  within  the  community  by  improving  their  skills.  The  revue 
generated  through  wine  sales  enables  not  only  to  develop  new  occupational 
opportunities  for  the  community,  but  also  to  improve  basic  living  conditions  and 
provide  cost  efficient  medical  services  to  the  Fairhills  Community.  One  of  the  first 
benefits  was  the building  of day-care  facilities  on  the  farms  for  the  children  in  the 
neighbourhood.  Before  many  farm  workers  were  forced  to  bring  their  children  with 
them  to  the  vineyards,  an  unsafe  environment  for  infants.  Today, more  than  200 
small children are left at the day-care facilities where they are looked after by trained
child nurses, most of whom used to work at the vineyards. 

A  new  primary  school  Fairhills  Lorraine  was  later  built,  comprised  of  a  library  and 
computer centre as well as a new community hall in which a large variety of activities 
are  being  organised,  including  literacy  courses  for  adults.  Fairhills  stimulates  its 
workers to move on to a better, more educated job (within or outside the company) 
so that they can offer training to newly hired workers.  

A  health  care  facility  was  recently  implemented  to  provide  free  health  care  for 
workers and their families. A mobile health clinic offers first aid to injured workers at 
the vineyards.  

Through tree planting, the construction of  wastewater treatment plants and the reuse 
of  recycled  water  for  irrigation  purposes,  Fairhills  also  contributes  to  a  better 
environment. 

Aalst Fair Trade City  

The  board  of  mayors  and  aldermen  of  the  municipality  of  Aalst  responded  to  the 
national  campaign  of  a  group  of  organisations  such  as  Max  Havelaar,  Oxfam  and 
Vredeseilanden in 2004 to raise more awareness about fair trade and sustainability in 

65Belgium - Aalst - Population: 83,347

Flanders. In 2008 the city of Aalst was rewarded for its efforts with the official title of
„Fair Trade City“. 

Aalst supports Fairhills 

The  city  of  Aalst  has  offered  its  full  support  to  the  Fairhills  project,  not  only  by 
exclusively  serving  Fairhills  wines  at  municipal  receptions,  but  also  by  creating 
several activities in order to acquaint its own employees and the citizens of Aalst with 
the project.  

Each  year,  the  municipality  together  with  the  Advisory  Committee  for  International 
Cooperation organizes a one day world festival, “Casa Del Mundo”. Fairtrade is one
of  the  features  to  which  the  municipality  wishes  to  focus  on  during  the  festival  and 
Fairhills is used as a concrete example to illustrate the benefits of fair trade.  

The European and International cooperation department of the municipality  have so 
far  organized  two  workshops  for  two  different  target  groups,  the  hotel  and  catering 
industry on the one hand and the business managers on the other hand. The aim of 
these  workshops  was  to  convince  the  managers  to  add  the  Fairhills  wines  to  their 
wine list and/or take the Fairhills wines into consideration as a corporate gift.  

Due to these initiatives, the city of Aalst renewed its title of “Fair Trade City” in 2014
and 2015.    

66Spain – Barcelona Provincial Council - Population: 5.523.784

Barcelona’s Fair Trade Support Measures
- Raise citizens’ awareness
- Promote fair trade and ethical banking
- Involve municipalities, civil society
organisations and citizens in fair trade

FAIR TRADE CELEBRATION 

The  Fair  Trade  and  Ethical  Banking  Celebration  is  an  educational  and  ludic  activity 
organized  by  seven  Catalan  organisations: SETEM,  Alternativa  3,  FETS,  FIARE, 
Oxfam  Intermón,  Xarxa  de  Consum  Solidari  and  Xarxa  d’Economia  Solidària.  This
initiative came about 15 years ago in order to raise awareness and apprise Catalan 
citizens about the conditions of international trade and its consequences in Southern 
countries.  The  aim  is  to  promote  Fair  Trade  and  Ethical  Banking  and,  thus,  to 
encourage people to integrate these practices in their everyday lives.  

The  activities  carried  out  during  this  event  are  clearly  targeted  to  raise  awareness:
for  children,  games,  exhibitions, 
theatre,  musical  shows,  and  performances 
documentary film screening and selling of Fair Trade products, among others.   

Barcelona  Provincial  Council  (Diputació  de  Barcelona)  supports  this  initiative  by 
funding the event and spreading the information to all the cities of the Province.  

Since  2003,  the  Fair  Trade  Celebration  has  taken  place  not  only  in  Barcelona,  but 
also  in  other  cities  of  Catalonia  (nowadays  up  to  30  municipalities  and  90 
neighbourhoods), with the participation of more than 200 organisations.  
The celebration takes place on the 10th of May to commemorate the World Fair Trade 
Day, celebrated in more than 800 cities across the globe.  

In  line  with  the  event,  a  broad  communication  campaign  is  launched:  press 
conferences,  advertisement  spots,  the  Event  Journal  offered  with  El  Periódico  de 
Catalunya,  promotional  banners,  posters,  communication  plans  for  social  networks 
and its website (www.festacj.org).  

Throughout  the  Fair  Trade  and  Ethical  Banking  Celebration,  people  see  fair  trade 
and solidarity-based economy as alternatives to commercial and economic practices 
that  generate  speculation  and  poverty  all  over  the  world.  Thousands  of  worldwide 
experiences prove that a more fair, democratic and sustainable trade and economy 
are  possible,  together  with  the  promotion  of  values  such  as  equity,  justice, 
cooperation,  participation  and  environment  protection. Everyone  can  take  part  in 
these initiatives just by small actions in their daily lives and contribute to improve the 
situation in developing countries through a more responsible consumption. 

67Spain – Barcelona Provincial Council - Population: 5.523.784

is  called 

“Cafè-ciutat” 

(City-coffee). 

Another  Fair  Trade  initiative  carried  out  in  the  Province  of  Barcelona  and  led  by 
Involving  public  entities,
Alternativa  3 
associations,  citizens  and  city  establishments,  this  initiative  works  to  create  a  link 
between coffee production, its origin and its consumption by means of developing a 
sort of “coffee brand” linked to the name of each municipality. Coffee shops, bars and
other  establishments  in  the  city  provide  faire  trade  coffee  and  highlight  the 
improvement  of  the  farmers’  quality  of  life,  as  well  as  the  protection  of  the
environment  achieved  thanks  to  the  consumption  of  fair  trade  coffee.  In  this  way, 
citizens  and  consumers  are  made  aware  of  the  benefits  of  fair  trade  in  Southern 
countries.  

68Germany - Bremen - Population: 548,914

Bremen’s Fair Trade Support Measures 
-German Fair Trade Capital 2011/12
-Public procurement
-NGO co-operation and broad awareness raising

Fair Trade is one of the main pillars of Bremen´s Development Cooperation strategy. 
Consequently,  Bremen  was  among  the  first  German  Länder  to  introduce  a  law 
containing  the  commitment  towards  social  and  ecological  standards  in  public 
procurement.  Furthermore,  we  sponsor  projects  and  initiatives  which  dedicate 
themselves  to  Fair  Trade  and  its  promotion.  As  a  city  we  are  involved  in  those 
activities  and  also  try  to  set  a  good  example  by  using  Fair  Trade  products  during 
events and in public facilities, not only in our prestigious town hall.  

Thanks  to  our  various  partners  within  the  city,  our  efforts  have  already  been 
recognized twice. We were first awarded as Germany´s “Fair Trade Capital 2011” by
the  German  state  agency  “The  Service  Agency  Communities  in  One  World“  and
secondly by  several  NGO’s  as  “Fair  Trade  Town”  together  with  our  sister  city
Bremerhaven  in  2014.  Especially  the  jury  from  the  Fair  Trade  Capital  Award  was 
impressed  by  the  various  different  stakeholders  involved  throughout  the  Free 
Hanseatic  City  of  Bremen  as  well  as  the number of  creative  projects  that  exist  and 
are  being  promoted. The  capital  award  has  both  been  a 
boost to our activities and an appreciation for the people in 
our  city  dedicating  themselves  towards  Fair  Trade.  The 
prize  money  of  €  30.000  has  been  used  to  fund  further 
initiatives  and  projects  and  strengthen  public  awareness 
both  locally  and  as  a  part  of  our  tourism  marketing. 
Furthermore,  various  companies  and  retailers  specializing 
in  Fair Trade  goods  have  set  up  their  business  in  Bremen 
since  then,  enabling  local  consumers  and  caterers  to 
choose from even more Fair Trade products. Being the Fair 
Trade  Capital  and  a  Fair  Trade  Town  had  an  enormous 
effect on the Fair Trade commitment in the Free Hanseatic 
City of Bremen.  

In  the  future,  the  Free  Hanseatic  City  of  Bremen  will 
continue  to  support  Fair  Trade  projects  and  its  promotion. 
We maintain  a  constant  dialogue  with  our partners  here  in 
Bremen  and  always  try  to  involve  new  organizations  into 
our  activities.  In  terms  of  public  procurement,  it  is our aim  to  ensure  that  within  the 
next  years  all  goods and  services  purchased  by  the  city meet  social  and  ecological 
standards. Other German Länder have already been inspired by Bremen´s effort and 
are  passing  similar  laws  and  are  trying  to  implement  Fair  Trade  into  their 
procurement  procedures.  Furthermore,  we  are  trying  to  strengthen  Fair  Trade 

69Germany - Bremen - Population: 548,914

networks  and  relationships  not only  within  Germany  but also on  the  European  level 
via our representation in Brussels.  

So  the  city’s  strong  Fair  Trade  commitment  also  pushed  our  motivation  to  promote
the topic of Fair Trade on the European Level. Since the beginning of 2014 network 
meetings  with  European  Fair  Trade  supporters  took  place  in  the  Bremen’s 
representative  office  in  Brussels  on  a  regular  basis.  A  strong  partnership  with 
stakeholders  from  the  Committee  of  the  Regions,  the  European  Commission,  the 
European Parliament as well as other regional representatives and NOGs had been 
built. With the help of the Committee of the Region a demand for a European strategy 
on  promoting  Fair  Trade  has  been  created. There  is  still  much  to  be  done  for  a 
European supportive climate on Fair Trade  – and we are willing to keep on working
for this. 

70UK – Bristol – Population 441,300 

Bristol’s Fair Trade Support Measures
- Promotional events and activities
-
-

Funding Bristol Fairtrade Co-ordinator
Fair Trade Procurement and Business
Engagement

In  2015  Bristol  is  celebrating  10  years  as  a  Fair  Trade  city.  The  Lord  Mayor  and  50 
Business  and  Community  leaders  gathered  at  the  University  of  Bristol  to  celebrate  all 
that  has  been  achieved  and  to  pledge  their  ongoing  support  for  Fairtrade.  As  George 
Ferguson, Mayor of Bristol says “I’m proud to live in a city that places such a high value 
on ethical and sustainable living... supporting Fairtrade is the sign of a good city“.

Bristol’s Fair Trade Co-ordinator has been funded by Bristol City Council for 8 years, to
lead  the  Fair  Trade  Network,  working  in  schools  and  delivering  Fair  Trade  events  and 
activities. This role increases the awareness of and commitment to Fair Trade in the city 
and beyond.  

Bristol holds a Fair Trade Business Awards Scheme each year to reward businesses in 
the  region  that  support  Fair  Trade  and  encourage  other  local  businesses  to  buy  more 
Fair  Trade products; a  highly  effective  tool to  engage  local  businesses  with  Fair  Trade 
and  increase  their  commitment  to  Fair  Trade  procurement  and  promotion.  Fair  trade 
procurement is also a key component of the Bristol Green Capital Business scheme ‘Go 
Green’.

Bristol Big Green Week includes a Fair Trade Fashion Gala event each year, with  a Fair 
Trade  and  Ethical  marketplace  selling  Fair  Trade  products  and  serving  local  surplus 
food.

Bristol is proud to be hosting the International Fair Trade Towns Conference held in July 
as part of Green Capital programme 2015. The theme ‘Fair Trade For Sustainability’ will 
link the themes of being fair and being green, and we have commissioned a short film to 
highlight the issues.  

Fair Trade procurement is part of key Council contracts. Fair Trade tea, coffee and other 
food options are offered in Council buildings. All schools in Bristol only serve 100% Fair 
Trade bananas. 

71UK – Bristol – Population 441,300 

Bristol has held 3 Fairtrade Schools Conferences, inviting schools from the South West 
region  to  learn more about  Fairtrade. 39  Bristol  schools  have  made  Fairtrade pledges, 
27 are primary, 12 are secondary. 

Each year, Bristol hosts a Fair Trade Producer from Nicaragua who speaks in schools 
and  at  Fairtrade  Fortnight  events  about  the  impacts  of  Fairtrade  on  their  family  and 
community.  The  visit  is  organised  with  Bristol  Link  with  Nicaragua,  part  of  our  City 
Twinning, and provides a powerful and effective  way of communicating the importance 
of Fairtrade. 

Bristol  has  a  well  supported  Fair  Trade  Network  Partnership  with  active  social  media, 
website and mailing list. 

72France – Brittany – Population: 3 273 000

Fair 

Brittany’s 
Trade 
- organic fair trade cotton, a development tool
- an integrated industry approach
- concerted support alongside the WAEMU

Support  Measures

A programme to establish an organic fair trade cotton industry in Mali, co-funded by the 
WAEMU and the Brittany Region

The organic cotton programme was launched in Mali by the operator Helvetas in 1998 
with  the  first  organic  cotton  production  trials.  Production  gradually  increased  to  reach 
almost  800 tonnes  in  2007  and  involving  over  4,000  producers  (of  which  33%  were 
female  producers).  As  of  2008,  the  Brittany  Region  and  the  Commission  of  the  West 
African Economic and Monetary Union (WAEMU) provided a grant of €1,200,000 over 6 
years (2008-2013) to support the structuring and the consolidation of gains. The project 
beneficiary is the Mouvement Biologique Malien (Malian Organic Movement - MoBioM), 
an umbrella associating regrouping 74 cooperative companies spread over 6 production 
zones  in  the  cotton  basin  of  the  Compagnie  Malienne  pour  le  Développement  des 
Textiles (Malian Textile Development Company - CMDT).

The aim of the project is :

to contribute to sustainable economic development through organic and fair trade cotton 
production;

to  contribute  to  enhancing  the  value  of  productions  (job  creation  and  increased 
revenues) through support for processing (spinning, weaving and manufacturing);

to  integrate  this  support  into  a  global  approach  to  ethical  economic  development,  in 
particularly by drawing on the support of Breton industrial and economic players in the 
textile industry.

Secure and rising operating incomes which benefit the entire population

Enable  organic  cotton  producers  to  make  a  living  from  their  work by  earning  a  secure 
income: this priority aim of the programme has required substantial financial support, to 
help  producers  master  techniques  on  the  one  hand,  and  to  compensate  for  the  lower 
yields  than  conventional  cotton  in  the  first  years  on  the  other  hand.  This  was  allowed 
through a guaranteed purchase price and production levels that have continued to rise 
since 2008.

73France – Brittany – Population: 3 273 000

These  profits  will  not  only  benefit  organic  cotton  producers,  but  the  entire  local
population. Indeed, the "Fairtrade Premium" (approximately 10% of the purchase price) 
represents  a  collective  local  resource  dedicated  to  the  implementation  of  community 
projects,  chosen  by  the  inhabitants  themselves  (construction  of  classrooms,  meeting 
and training rooms, maternity hospitals, etc.)

Organic cotton, a lever for the development of organic fruit and vegetable crops 
The second 2011-2013 convention was extended to include the development of organic 
and  fair  trade  vegetable  industries. Organic  cotton  follows  a  three  year  crop  rotation, 
and the availability of land, 2 out of 3 years, provides a substantial opportunity for the 
development  of  diverse  crop  rotations  with  the  potential  to  expand  the  markets  and 
incomes of producers.

As such, sesame, fonio, millet, sorghum and shea crops have developed considerably 
in the programme zones, along with market gardening activities.

Towards an autonomous MoBioM

The  organisational  and  financial  autonomy  of  the  MoBioM  will  allow  the  industry  to 
continue  its  development  independently. This  objective  could  soon  be  achieved.
Moreover,  the  substantial  commitment  of  the  Agence  Française  du  Développement
(French Development Agency) to develop organic fair trade cotton production in West 
Africa and its marketing  will make it possible to consolidate the industry and render it 
self-sufficient within a short period of time.

International solidarity more necessary than ever

In 2012 Mali was plunged into an unprecedented crisis which called its territorial integrity 
into question, a crisis which extends far beyond its borders and which concerns us all. 
Against  this  backdrop,  the  organic fair  trade  cotton  industry,  which  the  Brittany  Region 
has  supported  alongside  the  WAEMU  since  2008,  takes  on  even  greater  significance. 
Development programmes need to be maintained now more than ever, at a time when 
our Malian partners are in greatest need of an expression of international solidarity.

From the producer to the end customer: committed partners throughout the entire chain

Since  2008,  several  companies  in  the  Western  textile  sector  have  demonstrated  their 
ambition to support the organic cotton industry in Mali. A best practices partnership has 
thus been concluded with textile companies including one of the largest, Armor Lux, in 
Quimper.  The  commitment  of  TDV  Industries,  in  Laval,  the  only  French  company  to 
handle  weaving,  spinning  and  dyeing  operations,  has  made  it  possible  to  maintain  a 
direct link between the producers and the manufacturer.

74Germany - Ruhr – Population: 5 135 136 

Ruhr’s Fair Trade Support Measures 
- Linking civil society and local authorities together for
local development cooperation and fair trade
-Raising awareness for global issues on a regional level
- Fair public procurement and global education as major
tools for international justice

Industrial site, football region, capital of culture – the Ruhr area has many facets.

Since 2013 another pioneering task has come along: on the 20th of November of 2013 
the  Ruhr  area  was  elected  /  awarded  “fair  trade  metropolis”  as  first  greater  region  in 
Germany and as first regional association of towns worldwide. 21 cities and communities 
as well as the county of Wesel, with a total of over four million inhabitants, received the 
award  of  the  whole  Ruhr  area  through  their  engagement  as  fair  trade  towns  and 
counties. The award was made possible because of the long-standing preparatory work 
of  the  network  “Fair  Metropolis Ruhr”.  It  bundles  and  links  the  activities  of  the  civil 
society,  church  institutions,  and  local  authorities  on  the  subject  of  local  development 
cooperation and fair trade in the Ruhr area.

In 2010 the Ruhr area was the European capital of culture and presented itself as model 
region for Europe. With the signature underneath the MAGNA CARTA  RUHR.2010, all 
involved  municipalities  (54)  and  counties  (4)  committed  themselves  to  abstain  in  their 
public  procurement  from  products  that  are  produced  through  exploitative  child  labor. 
Thereby  the  cities  and  communities  of  the  Ruhr  area,  with  more  than  five  million 
inhabitants,  have  paved  the  way  for  global  responsibility  of  municipalities  in  Europe. 
Since  then,  an  exhibition  about  exploitative  child  labour,  designed  together  with 
Misereor, has raised awareness in many municipalities about this issue. 

After this success, the participating municipalities set out together to give the subject of 
“fairness”  a  new  focus.  Under  the  title  of  “Fair  Metropolis  Ruhr”,  the  aim  is  that  all
communities,  cities,  and  municipalities  of  the  Ruhr  area  commit  to  become  fair  trade 
towns, communities and municipalities. The continuous development policy education of 
the  One  World  Centers  and  groups,  campaigns  like  “Der  Pott  kocht  fair”,  which 
established local fair trade coffee brands in the Ruhr area, the trade fair “Fair Trade &
Friends”  and  much  more,  build  a  solid  basis  for  this  objective. For  this  particular
commitment,  the  network  “Fair  Metropolis  Ruhr”  received  the  Fair  Trade  Award  2012
through Fairtrade Germany in Berlin.

75Germany - Ruhr – Population: 5 135 136 

Receiving  the  award  as  "Fair  Trade  Metropolis"  is  only  an  intermediate  goal  for  the 
initiators.  Further  plans  are  already  on  target:  The  objective  is  to  award  every  single 
municipality of the Ruhr area as fair trade town in order to present fair trade issues to a 
broader  public  and  to  strengthen  fair  public  procurement  processes.  With  its  project 
"FaireKITA 
an 
important contribution  to  establish  global  education  and  fair  trade  issues  in  the  early 
childhood  education,  such  as  in  kindergarten.  More  than  100  nurseries  are  currently 
passing this process. Global responsibility of municipalities as well as the civil society is 
envisaged  to  be  the  topic  of  the  planned  exhibition  "Ruhr  Global",  which  is  ought  to 
illustrate the interdependence between the local and global level to a broader audience. 

(www.faire-kita-nrw.de), 

network  makes 

in  NRW" 

the 

76Belgium - Ghent - Population: 252.333

Ghent’s Fair Trade Support Measures 
- Make existing offer of Fair products visible
- Make demand evident through events
- Help businesses increase supply of fair fashion

Good  practice  local  support  for  Fair  Trade:  City  of  Ghent  (Belgium)  stimulates  Fair 
Entrepreneurs 

The  city  of  Ghent  is  launching  a  project  to  increase  the  volume  of  fair  textiles  and 
clothing  on  offer,  to  increase  awareness  and  to  stimulate  demand  for  ethically 
produced and fairly traded clothing. 

The City of Ghent cannot accept that the production of consumption goods can result 
in  the  unfair  treatment  of  people  in  other  continents.  This  exploitation  is  ethically 
unacceptable,  but  also  creates  more  tangible  problems.  Fast  fashion,  for  example, 
creates  a  lot  of  CO2-emmisions  and  waste  and  often  creates  unfair  competition  to 
local businesses.

For  these  reasons  the  City  wants  to  see  more  and  more  citizens  buy  more  fair 
products in more local shops that offer ever more fair alternatives.    

Tine  Heyse,  Deputy  Mayor  for  Environment,  Climate,  Energy  and  North-South 
cooperation  stated:  “It  all  starts  with  political  willingness  to  act.  From  the  onset  this 
project  received  broad  support.  This  is  needed  for  such  projects  to  succeed.  In  the 
strategic  multi-annual  plan  of  the  city  our  ambition  is  explicit:  Ghent  wants  to  be 
recognized as a center of knowledge and innovation for fair trade.”

The city of Ghent gives the example. In the local procurement policy not only cost is a 
decisive factor. Also quality, life cycle costs, ecological criteria as well as social and 
ethical criteria are included in tenders. This is not always the easy option but it gives 
an important signal to the citizens and to the market.   To stimulate market offer the 
procurement department aims to announce new social and ethical criteria more than 
6 month before the tender is published. 

The  City  of  Ghent  does  not  only  want  to  contribute  to  increased  awareness  of  its 
citizens.  It  wants  to  invest  in  changing  purchasing  behavior  and  in  corporate 
responsibility  within  local  economy.  For  this  reason  the  next  years  focus  will  move 
beyond increasing awareness and will also stimulate supply of fair products in Ghent. 
A pilot project has been started in the textiles and clothing segment.  

This  pilot  initiative  starts  from  an  extensive  social  mapping  research  that  identifies 
opportunities and threats. At the start of the process this research has successfully   

77Belgium - Ghent - Population: 252.333

brought  together  more  than  30  specialists  from  industry,  local  shops,  research 
institutions and NGOs. This group will continue working with the results in the coming 
months and years. The city is creating a toolbox of support for these  entrepreneurs 
that are willing to screen their supply chain with ethical principles. A selected group of 
young  entrepreneurs  will  form  an  incubator  where  their  ethical  objectives  can  be 
tested within the existing market reality. 

The  project  is  designed  to  support  local  businesses  to  become  Fair  Entrepreneurs.
The  city  believes  it  can  be  an  element  to  make  our  local  economy  more  resilient 
towards the challenges of a globalized economy. Fair trade is not only of relevance to 
producers in other continents, it is important for everybody.  

In  the  city  of  Ghent  fair  textiles  and  clothing  will  become  hot  topic  in  the  coming 
years.  Market  situation  will  only  change  if  the  public  demand  grows  simultaneously 
with the supply of fairly produced goods. Therefore mayor events will continue to put 
the  issue  on  the  public  agenda  and  make  options  for  sustainable  alternatives  more 
visible.  

On  March  1st  2015  Ghent  hosted  the  very  first  Fair  Fashion  Fest  in  Belgium.  The 
Museum of Industrial Archeology and Textile hosted the successful event and proved 
to be the perfect site to link the cities textile heritage to the many options to opt for 
fair and sustainable clothes today. Nearly 3.000 visitors attended. The event received 
national media coverage in print and visual press. 

Deputy Mayor Schepen Tine Heyse concludes optimistically: "It is clear that his is a 
complicated  matter.  It  is  therefore  of  utmost  importance  to  offer  guidance  to  these 
businesses that show willingness to make more fair choices. It is evenly important to
continue communicating clearly about the issue.  

78Sweden - Gothenburg - Population: 540,132

Gothenburg’s Fair Trade Support Measures 
-77% of the procured tea is fair trade
- 86% procured coffee is fair trade and/or organic
- 40 information events were arranged in 2014

The City of Gothenburg has a tradition of working with sustainability and sustainable 
consumption, where Fair Trade is an important part. Since spring 2011, the city is a 
certified  Fairtrade  City  (or  town).  This  means  that  the  municipality  lives  up  to  the 
criteria of ethical public procurement, conducts active information work on the subject 
and  provides  a  certain  amount  of  Fair  Trade  products  in  shops,  cafés  and  at 
workplaces.  

The  information  work  about  Fair  Trade  in  Gothenburg  includes  a variety  of  lectures 
for  organizations,  schools  and  companies,  as  well  as  campaigns  and  other 
awareness-raising  activities.  Some  examples  of  these  activities  are  competitions 
between  cafés  in  fair  baking  and  a  strong  cooperation  between  volunteers  who 
continually promote fair trade in different ways. The next step is to further involve the 
public canteens within the municipality to do more ethical purchases. There is also a 
steering  committee  that  gathers  members  from  the  whole  society,  including  for 
example  politicians,  trade  unions,  the  university  and  retailers.  They  cooperate  and 
discuss  how  to  best  work  with  information  campaigns  and  other  activities  in 
Gothenburg and within their member organizations and networks.  

The political decision about turning Gothenburg into a Fairtrade City was taken jointly 
among all the political parties. The large interest for Fair Trade among the citizens of 
Gothenburg provides a strong motivation to work with responsible public procurement 
and to continue the work by raising awareness about Fair Trade.

79Germany - Hamburg - Population: 1,750,000

Hamburg’s Fair Trade Support Measures 
- creative educational activities
- awareness-raising in public procurement
- collective appeal to the public in urban quarters

Being  a  commercial  and  port  city  with  world-wide 
links,  Hamburg  shares 
responsibility for a fairer world.  The award of the Fair Trade Town status means an 
incentive to further promote the market distribution of fair trade products in Hamburg, 
always in dialogue with stakeholders of the economy and the civil society (cited from 
the Hamburg State government programme, 2011).  

Since 2010 there has been a non-state Fair Trade Promotion Office (FTP) supported 
by  the  Hamburg  government.  It  is  keeping  in  touch  with  local  enterprises  (industry,
retailers,  restaurants,  hotels)  in  order  to  increase  imports,  processing,  sales    and 
consumption  of  Fair  Trade  goods.  On  the  other  hand,  public  enterprises  owned  by 
the  City  of  Hamburg  shall  be  convinced  to  introduce  social  product  criteria  in  their 
procurement procedures. 

As  early  as  2006,  a  particular  local  action  alliance  was  formed  under  the  name  of 
“hamburg  mal  (meaning  “multiplied  by”)  fair”  (hmf)  gathering  state  and  non-state
actors  that  share  their  respective  interest  and  knowledge  in  the  field  of  Fair  Trade. 
Hmf is an educational project enabling multipliers among teenagers and young adults 
to  explain  their  peer  groups  the  concept  and  background  of  Fair  Trade.  Taking 
examples  from  certain  products  of  daily  use  (such  as  coffee,  cocoa,  fruit  juices, 
cotton  wear  or  footballs),  hmf  makes  consumers  familiar  with  topics  of  world  trade 
and the factors of production in the countries of origin. 

There is a wide range of creative activities, all related to the Fair Trade subject, such 
as photo competitions, poetry slams, awareness weeks with top chefs using fair trade 
ingredients,  or  student-run  companies  processing  and  distributing  cotton  products 
(T-shirts, shopping bags). 

The  FTP,  for  its  part,  arranges  awareness  weeks  in  selective  shopping  streets  and 
urban quarters with the purpose of motivating a large number of retailers, restaurants 
and service suppliers to show their commitment for Fair Trade. 

Both FTP and hmf inform the public on their websites www.fairtradestadt-hamburg.de
and www.hamburgmalfair.de  A  digital  Hamburg  city  map  shows  most  of  the  places 
where Fair Trade products are available or committed organizations are based. 

80Germany – City of Hannover - Population: 518,386 

Hannover’s Fair Trade Support Measures 
- Public relations (Fair Trade Week etc.)
- Fair Trade Town
- Administration with fair trade officials

The  city  council  of  Hannover  decided  to  sign  the  Aalborg–Charta  in  1995  and
initiated  the  Agenda21-Buero  within  the  municipal  administration.  In  2009,  the 
millennium-declaration  of  the  “Deutsche  Städtetag”  (German  Cities  Council)  was
signed. 

The  capital  of  Lower  Saxony  has  shown  best  practices  and  set  a  focus  within  its 
municipal  administration,  it  has  taken  its  global  responsibility  seriously  and  has 
initiated the necessary processes. Because of this, Hannover was promoted  to Fair 
Trade Town in 2010.  

Fair  Trade  and  its  issues  are  located  at  the  Office  for  Agenda21  and  sustainability.
The  main 
for  schools  and 
kindergartens as well as implementing social criteria in public procurement. 

focuses  are  development  of  educational  offers 

Social criteria are already an issue in public procurement in the City of Hannover. In 
the common regulation on public procurement it is stated:  "All action must imply the 
requirements  made  about  tariffs,  fair  trade  /  exclusion  of  abusive  child-labour  and 
against  illegal  work."  To  help  suppliers,  information  about  these  criteria  are  handed 
out at procurement processes and are documented at the end. Also, the Agenda21- 
and  the  Sustainability  office  work  as  a  service  centre  within  the  municipal 
administration on this issue and initiate flagship projects.  

In raising awareness, all techniques of public relation are used (leaflets, expositions 
and campaigns). The issue of fair trade is connected with other topics – e.g. working
conditions  and  sustainable  consumption.  Hannover  organizes  the  local  activities  of 
the national fair trade week in September in cooperation with local NGOs. The World 
Fair Trade day in May is used to address the municipal employees. 

On the national level, Hannover is part of the “Netzwerk Faire Beschaffung” (network
for fair procurement) and participates at meetings of cities taken part at the biannual 
competition “Hauptstadt fairer Handel” (fair trade capital). On the international level,
Hannover  participates  at  "Procura+"  and  occasionally  takes  part  at  international 
FairTrade Town meetings. 

In 2012/2013, Hannover cooperated with its twin towns in the campaign “Aware and
fair”.  People  from  Malawi,  Poland,  Hungary,  the  Czech  Republic  and  the  UK  got 
together  with  the  main  goal  to  raise  awareness  about  the  Millennium  Development 
Goals through the example of the situation in Malawi via the subject of Fair Trade. As 

81Germany – City of Hannover - Population: 518,386 

one conclusion, two towns (Poznan and Litomerice) became the first Fairtrade Towns 
in their country. 

Within this campaign, Blantyre (Malawi) could promote their fair trade goods (sugar, 
rice, tea, coffee and nuts) and a list of producers of these goods was made for large-
scale  consumers.  Besides  learning  units  on  poverty,  fair  trade  education  was
developed to be used in Hannover as well as in Blantyre. 

the  campaign 

„kommunale  Klimapartnerschaften“ 

Within 
(muncipal  climate
cooperation)  the  City  of  Hannover  cooperates  with  Belén  de  los  Andaquíes 
(Colombia).  There,  cacao  is  grown  organically  by  small  farmers.  In  Germany, 
chocolate is made from this cacao which is used in Hannover to raise awareness on
fair trade through public relation and education. 

82Germany - Leipzig - Population: 531,582

Leipzig’s Fair Trade Support Measures 
- Sustainable and fair public procurement
- Public authorities as fair trade role models
- North-South partnership on fair trade

‘Leipzig handelt fair / Leipzig deals fairly’  – tradition and progress unite in the 1000-
year-old city of trade and fairs. 

Fair-trade  is  an  integral  aspect  of  sustainability,  and  Leipzig  has  committed  to  a 
sustainable development that will ensure its future growth. The city’s decision-making
relies  on  the  guidance  provided  by  this  commitment,  notably  through  the  continued 
work and processes of the framework of the local Agenda 21. Sustainable planning 
and trading are inspired by both a sense of inter-generational responsibility, as well 
as consideration for global justice within the current generation. These principles are 
the foundation for Leipzig’s fair-trade promoting activities.

Further  impulses  for  the  promotion  of  the  fair-trade  creed  might  emanate  from  the 
European  level,  however,  additional  support  is  needed  to  highlight  these  principles 
on the community-level.  

It  has  become  apparent  in  Leipzig  that,  providing  that  both  the  supply  and  the 
demand side are sufficiently motivated, the principles of fair-trade can be effectively 
fostered.  Not  only  can  this  motivation  stem  from  the  recognition  of  the  utility  of 
balanced  ecological,  economic  and  social  living  conditions,  but  also  from  legislative 
frameworks. 

The city’s administration is devoted to the ILO’s core labor standards - the core of the
fair-trade spirit and current applicable law.  

The  public  authorities  act  as  role-models  and  are  therefore  required  to  complete 
trading functions accordingly. Naturally, this involves ethical considerations.  

The  city  of  Leipzig  has  developed  a  ‘concept  for  sustainable  and  fair  procurement’ 
within its own procurement planning, and will implement this over the coming years. 
Currently,  the  procurement  regulations  on  supply  and  performance  are  under 
revision.  In  cooperation  with  the  city’s  parents’  council,  publicizing  and  provision  of 
meals  at  schools  and  nurseries  are  being  improved  in  compliance  with  fair-trade 
criteria.  

The city of Leipzig has been member of the Fairtrade Town steering group since the 
decision  to  become  a  Fairtrade  Town  was  made.  In  this function  it  operates  and/or 
supports numerous relevant activities with a wide public reach.  

Moreover, the city of Leipzig supports associations that undertake  educational work 
in this area.  

83Germany - Leipzig - Population: 531,582

A North-South partnership between Leipzig and Ethiopia’s capital, Addis Abeba, was 
established in 2004, followed by cooperation on fair-trade launched in 2006. A variety 
of  partners  within  the  city  have  collaborated  to  supply  Leipzig  with  fair-trade  coffee 
(notably  Verein  Städtepartnerschaft  Leipzig-Addis  Abeba  e.V.  and  Evangelisch-
Lutherisches Missionswerk Leipzig e.V.). This coffee is produced by, and purchased 
from, farmers of the Oromia Coffee Farmers Cooperative Union; an association with 
35  member  cooperatives  in  Central  and  South  Ethiopia.  The  priority  is  the 
sustainable cultivation of coffee. The profits made from fair-trade sales to Europe and 
the  USA  are  used  to fund  charitable  projects  in  Ethiopia. The  ‘Leipzig’s  partnership 
coffee from Ethiopia’ is now available in numerous shops in Leipzig.

84Czech Republic – Litomerice – Population: 23,462 

Litomerice’s Fair Trade Support Measures 
-Fairtrade steering committee as a wide platform
-Fair trade grants
-Regular events

Steering  Committee  -  Gateway  to  the  systematic  fair  trade  development  and  wide 
cooperation 

The Fair Trade Steering Committee was established in 2011 as the key element of the 
municipality´s effort to achieve Fair Trade Town status. Since that time, it has evolved in 
a  platform  where  partners  from  various  fields  of  expertise  (schools,  town  library, 
businesses,  but  also  student  parliament,  active  seniors  groups  and  charity)  meet 
regularly every  two  months  or  so  to  discuss  what  has  been  achieved  and  what  to  do 
next.  This  diverse  environment  brings  fresh  ideas  and  allows  seeing  issues  from 
different  angles.    Equally  important  is  a  systematic  work  owing  to  Action  plans 
developed every year. This plan defines  the priorities and main goals for the period  as
well as the indicators for measuring the implementation and the achievements. Thus, we 
can  clearly  see  the  progress  that  has  been  achieved  and  this  can  be  effectively 
communicated  to  town  councillors  and  the  public.  Apart  from  campaigns  and  other 
awareness-raising  activities,  we  consider  this  entity  as  one  of  the  key  elements  of  a 
successful fair trade town in the long term. 

Fair trade grants for small projects with great impact 

The municipality established a specific grant scheme financially supporting various civil 
organisations as well as individuals active in the fair trade field in the town in 2014. The 
main aim is to engage and support active people and their ideas on fair trade and allow 
them  to  turn  them  into  reality.  Moreover,  all  activities  supported  by  this  grant  scheme 
have to somehow contribute to the actual fair trade Action Plan priorities. This, again, is 
part of the systematic work, but also significantly widens the impact on fair trade publicity 
that would otherwise not be possible.  Owing to this grant scheme, we have developed
new activities such as  “Welcoming First-Year Pupils at School  with a Fair Trade Pack” 
explaining  what  fair  trade  is  about  or  “Public  Reading”  on  fair  trade  in  the  town  library
and  many  other  activities  informing  about  fair  trade  in  a  popular  and  interactive  way 
always specifically designed to various target groups such as seniors, kids, mothers with 
babies etc. The grant scheme has been very successful and we plan to develop it in the 
next years.   

Drum & Bring Bike or Glasses for Africa = have fun and be practical 

85Czech Republic – Litomerice – Population: 23,462 

Highly publicised and popular events are organised during the year. One of the biggest 
events - a DUN DUN festival of African culture - takes place in the very heart of the town 
on  the  main  square.  You  can  taste  Africa,  play  Africa,  know  Africa  and  have  fun  with 
Africa  all day  long.  But  people  can also bring  bikes  and  glasses  they  do  not  need  and 
those  are  collected  nationally  and  sent  to  Africa.  This  year,  a  new  collection  of  school 
teaching  aids  will  be  organised,  too.  Also,  the  “Best  Fair Trade  Cake" contest  and  the
“Fair Trade Breakfast” in May have become more and more popular. This year we plan
an innovation – a fair trade breakfast on bikes and the next year a "Climate Breakfast"
will  be  organised  to  draw  attention  to  climate  protection  issues.  When  you  come  to 
Litoměřice, you know where to buy fair trade products or where to enjoy fair trade coffee
or tea straight away - just pick up your "where-to-buy" fair trade map in the information 
centre or use an interactive map of fair trade shops on the internet. And if you go to the 
cinema, you can watch fair trade clips before the movie starts.  

Those are pieces and bits about fair trade initiatives in our wonderful town. 

86Germany – Munich – Population: 1.47 million

Munich's Fair Trade Support Measures 
- The  city  council  is  committed  to  socially
responsible purchasing
- A big obstacle: No legal definition of "fair"

Municipalities  have  huge  economic  power  as  contracting  authorities,  which  means 
they  can  use  their  purchasing  and  procurement  in  favour  of  decent  working 
conditions  in  global  production  and  trade  and  also  serve  as  a  model  for  urban 
society. Munich city council decided by an overwhelming majority in 2011, and again 
in 2013, to shift its purchasing further towards fair and sustainable procurement as a 
way  of  meeting  its  responsibilities  in  this  matter.  At  the  same  time,  and  especially 
with its 2013 decision, the council was also thinking of the city's population and how 
to encourage it to purchase free trade products. The city council is regularly updated 
on progress on this front (next report: 2015/2016). 

As  a  result  of  these  decisions,  the  city's  procurement  is  being  shifted  step  by  step 
and product by product to fair trade, with trustworthy and recognised labels indicative 
of  social  standards  being  required  (for  products  such  as  building  stone,  stitched 
sports balls, flowers and food). There are different hurdles to be overcome with each 
product:  for  example,  not  all  of  the  eight  core  ILO  labour  standards  can  be  fully 
implemented  in  the  case  of  building  stone,  and  only  footballs  and  handballs  are 
available as a fair trade option. In coming years, attention will be turned in particular 
to textiles, toys, IT equipment and wood. 

One  thing  especially  has  proved  costly  and  difficult  and  that  is  verifying  labelling  or 
equivalent means of proof. For competition reasons, labels and the like can only be 
excluded  where  they  demonstrably  do  not  meet  fair  trade  criteria.  The  fact  that  the 
term  "fair"  is  neither  defined  in  law  nor  legally  protected  is  a  problem.  Munich  city 
council  works  with  recognised  labels  and  with  standards  linked  to  the  ILO  labour 
standards. 

In  some  areas  (such  as  IT  equipment)  no  labelled  products  exist.  To  get  the 
message  across  to  the  people  of  Munich,  we  have  co-opted  the  Nord  Süd  Forum 
München e.V., which, together with the city's Eine Welt (One World) office, provides 
information  and  raises  awareness  in  the  city  about  fair  trade.  Nord  Süd  Forum 
receives a subsidy from the city for this to provide staffing and material.  

Munich  city  council  concluded  a  climate  partnership  many  years  ago  with  the 
indigenous Asháninka people of Peru. As part of an EU project, one of the things we 
try to show is how our consumption affects living conditions in the rainforest and the 

87Germany – Munich – Population: 1.47 million

significance  the  sustainable  and  resource-efficient  economy  there  has  for  climate 
protection  and  the  prevention  of  poverty  (e.g.,  consumer  behaviour  and  lifestyle 
patterns, crude oil production in the forest). 

We would also like to put a Munich fair trade chocolate, produced by the Asháninka, 
on the market. This has been thwarted so far by certification costs that are too high 
for our partners in Peru. 

88Germany - Neumarkt - Population: 39,000

Neumarkt’s Fair Trade Support Measures 
-Financial support for Fair Trade Projects
-Public relations/Events like “One World Festival”
-Networking with Fair Trade stakeholders

The Town of Neumarkt, in the Upper Palatinate, is a Fairtrade Town since 2009. 
Neumarkt was awarded twice in the National Competition “Capital City of Fair Trade” 
(4th position in 2011 and 2nd in 2013).  

Fairtrade in Neumarkt is based on a strong “One World Initiative” of several NGOs, in 
particular the One World Shop Neumarkt. The Town of Neumarkt has integrated the 
issue Fairtrade in its sustainability strategy in 2004. The motivation of the Town of 
Neumarkt to support Fairtrade is firstly a question of positive public relations, but 
mainly pointing out the responsibility as well as the possibility of a municipality to 
support a sustainable development worldwide. Fairtrade is an excellent and perhaps 
the only “system” to guarantee social standards in global trade.

There are plenty of initiatives and projects in Neumarkt to support Fair Trade. 
Amongst other things, examples are: 

(cid:120)  Establishment of supporting Fair Trade in the Guiding Principles of the Town 

Development 2004. 

(cid:120)  Establishment of Fair Trade standards in the public procuring entity 2007. 

(cid:120)  Financial support from the Town of Neumarkt for projects in the field of education 

for sustainable development in matters of Fair Trade themes. 

(cid:120)  Using products with the Fair Trade label in the Town Hall as well as for special 
occasions (e.g. baskets with Fair Trade products for  birthday and anniversary 
celebrations).

(cid:120)  Providing schools, kindergartens and sports clubs with Fair Trade certified balls. 

(cid:120)  Support campaigns like Fair Trade Flowers and others. 

(cid:120)  Organization and support of several projects for awareness raising in matters of 

Fairtrade. 

(cid:120)  Working together with shops, where Fair Trade products are already sold and

finding new partners in the local economy. 

(cid:120) 

Integrating Fair Trade as a subject in the apprenticeship for retailers. 

(cid:120)  Building a network of One World Initiatives in Neumarkt. 

(cid:120) Celebrating a “One World Festival”

89Germany - Neumarkt - Population: 39,000

the 

framework  of 

In 
the  Climate  Partnership  between  Neumarkt  and 
Drakenstein/South Africa (funded by the Federal Ministry for Economic Cooperation 
and  Development  and  organized  by  ENGAGEMENT  GLOBAL  GmbH),  the  partners 
are  currently  working  on  a  Fair  Trade  link.  One  aim  is  to  sell  Fair  Trade  certified 
products (like wine and handicraft) from Drakenstein in Neumarkt. 

90France – Pays de la Loire - Population: 3,689,465 

Pays de la Loire’s Fair Trade Support Measures 
- Promote fair trade in the region
- Support fair trade projects
- Federate local actors & propose concrete actions

In 2009, the Region has equipped 2000 high schools technical agents with Fairtrade 
cotton  outfits.  Pays  de  Loire  received  the  "Titre  Territoire  de  Commerce  Equitable" 
title  (TDCE),  which  is  the  French  version  of  "Fair  Trade  Towns". Since  then,  the
regional Council of Pays de la Loire is committed to make its territory an emblematic 
space  for fair  trade,  in  realizing  five  goals:  to  pass  a    Council  resolution  supporting 
Fairtrade, to  make  a  range  of  Fairtrade  products  available  in  the  area’s  shops  &
catering  establishments, to  promote  the  use  of  fair  trade  products  in  a  number  of 
workplaces & community organizations, to attract media coverage & popular support 
for the campaign, to convene a local Fairtrade steering group to ensure commitment 
to Fairtrade Town status. 

In order to assert their engagement and meet the objectives of this title, the councilor 
Laurent Martinez, in charge of Fair Trade, has created a regional Fairtrade Council in 
February  2012  (Conseil  Ligérien  du  Commerce  Equitable),  a  recognized  platform 
where  the  exchanges,  dialogues  and  actions  confirm  the  dynamic  position  of  the 
Pays de la Loire territory as a pioneer of fair trade in France.  

From  this  event  which  gathers  over  200  people  each  year,  three  important  projects 
were born:  

In 2014, a project in Cameroon with the creation of an educational fair trade industry 
dedicated  to  cocoa  as  working  and  partnership  support,  as  part  of  the  twinning 
north/south of two agricultural establishments: the Regional high school of Agriculture 
in Ebolowa (Cameroon) and the Jules Rieffel high school in St Herblain (France). The 
operational project is to set up a factory processing cocoa into chocolate in the "CRA 
Ebolowa", which will be used as an educational workshop.  

The second project in 2014 was the group of Fair Trade Ambassadors, which raises 
awareness among high school students and apprentices regarding this topic.   

In 2015, the idea is to create a Fair Trade music festival supported by the wishes of 
the Fair Trade Towns to act together for this cause. Today, seven Fair Trade Towns 
are  already  stakeholders  in  the  project,  which  will  take  place  on  the  18th  of  July, 
2015.  The  performances  of  each  city  will be  broadcast  live  to  promote  this  concept
and to move from a local to an international mobilization.

The creation of a Council of this scale reflects a flawless mobilization of our regional 
Council  of  Pays  de  la  Loire  on  this  and  helps  to  bring  official  recognition  to  its 
operators. 

91Poland – Poznan – Population: 551,627 

Poznan’s Fair Trade Support Measures 
-First Fair Trade Town in Poland (2012)
-Two first Fair Trade Schools in Poland (2014)
-First 100% Fair Trade Shop in Poland (2011)

Experiences in Poland with direct purchases of Fair Trade products by Poznan

The  opportunities  in  the  area  of  public  purchase for Fair Trade products  emerged  with 
the  launch  of  the  Fair  Trade  Town  (FTT)  campaign  in  Poznań.  The  Polish  Fair  Trade 
Association  (PFTA)  together  with  the  City  of  Poznań  through  the  Department  of 
Environmental  Protection  (DEP)  have  been  participated  in  the  Aware  &  Fair  project 
funded  by  the  EU  in  2011-2013.  One  of  the  project  objectives  was  that  Poznań  would
meet the goals for becoming the Fair Trade Town. Since the beginning of the project the 
Department of Environmental Protection has been purchasing Fair Trade products within 
direct  purchasing  (orders  up  to  10,000  €).  FT  products  were  served  on  the  variety  of
project  meetings  as  well  as  conferences  organized  by  the  Town  Hall  with  the 
participation  of  the  DEP.  Until  recently,  purchases  were  being  made  for  products  such 
as coffee, tea, dried fruits, chocolate. 

Furthermore,  within  the  Aware  &  Fair  project,  the  DEP  purchased  100  Fairtrade 
certificated  soccer  balls,  which  were  designed  as  the  prize  for  a  competition  among 
students in schools of Poznań. Within the project, the DEP ordered a delivery of small
Fair  Trade  chocolates  (10g)  with  the  logo  of  the  city  as  well  as  bags  from  FT  certified 
cotton that are still being used until today. One of the best opportunities for purchasing 
and serving Fair Trade products in the Poznań Town Hall was the 6th International FTT
Conference,  held  in  November  2012.  During  the  conference  Poznań  was  awarded  the 
title  of  Fair  Trade  Town.    The  conference,  financed  in  part  from  EU  project  budget,
brought the opportunity to serve the FT products on coffee breaks and at the end of the 
conference,  participants  received  traditional  St.Martin's  croissant,  produced  with  FT 
ingredients (cane sugar, raisins, almonds, cocoa). Since that time, the FT products has 
been permanently used by Poznan City Hall, particularly during events organized by the 
Department of Environmental Protection. On the end of 2014 Poznan renewed the FTT 
certificate. 

92

Germany - Saarbrücken - Population: 180.049

Saarbrücken’s Fair Trade Support Measures 
- Pushing Fair Trade in our local area
- QuattroPole and Grande Région to become
“Fair Trade Cross-Border Territory in Europe”
- Direct project-partnerships in Central America
and Africa

As  First  Fairtrade  Town  (2009)  and  First  Fairtrade-University  (2014)  in  Germany, 
Saarbrücken likes it Fair!

Beyond pushing Fair Trade in our local area, we tackle with worldwide partnerships 
with Southern countries as well as within Europe (QuattroPole and Grande Région). 

We  support  Fair  Trade  because  it  improves  living  conditions  for  small  producers 
growing  our  foods  as  well  as  children’s  education  and  women’s  rights,  altogether 
supporting development of small rural communities.  

Fair Trade is an efficient tool to overcome poverty in the southern hemisphere relying 
on  more  social  responsibility  in  the  northern  part  of  the  world…changing  the
European policies in agriculture and export is the first urgent step to take. 

On  the  local  level,  Saarbrücken’s  Fair  Trade  commitment  means close  cooperation
between  public  administrations  and  grass-roots  organisations,  the  first  dealing  with 
sustainable public procurement at town, district and state level, and the latter running, 
every other day, a fair trade activity in all areas of life, such as schools, universities, 
cafés, restaurants, shops, and cultural, political and sportive events. 

A further trump card is the dynamic movement between the three main stakeholders - 
Worldshop “Weltladen” + Fair Trading Center “Fairhandelszentrum Südwest” + Free 
Electrons Campaign “Fairtrade Initiative Saarbrücken” and the many target-groups.

On  the  European  level,  we  have  been  creating  partnerships  in  QuattroPole  and 
Grande  Région  and  hope  to  become  “First  Fair  Trade  Cross-Border  Territory  in
Europe”.  The  grass-roots  organisations  started  off  with  meetings  and  common
actions  already  2005;  today,  they  are  active  within  their  respective  national 
campaigns  “Fair  Trade  Towns  -  Schools  -  Universities”  working  on  transnational 
bridge-projects.  

QuattroPole:  A  tri-national  network  of  four  cities:  Luxemburg  (L),  Metz  (F), 
Saarbrücken and Trier (D). 

By  2012  all  four  cities  had  achieved  the  status  “Fairtrade  Town”.  The  grass-roots
groups promote  Fair Trade in the public and call on authorities for support.  

93Germany - Saarbrücken - Population: 180.049

Grande  Région:  F/Lorraine,  L/Luxemburg,  B/Wallonie,  D/Saarland  and  Rhineland 

Palatinate 

After  being  declared  “First  Fairtrade-University  in  Germany”  in  May  2014,  the  Saar-
University  started  exchanging  with  other  universities  in  The  Grande  Région  and, 
“Universidades  del  Comercio 
beyond, with the South American  
Justo”.

Campaign 

The  Fair  Trading  Center  “Fairhandelszentrum  Südwest”  is  reselling  fair  products  to 
worldshops and companies all over our cross-border region.  

A  future  project  for  the  Grande  Région  aims  at  creating  exclusive  chocolate 
cocoa and regional Moselle wine (www.terroirmoselle.eu).  
combining fair-global  

On the international level,  we are tackling  with direct project-partnerships in Central 
America and Africa. 

Fair Trade  enriches  local  development  policy  on  two  levels:  for  NGOs  it’s  just  the 
right  and  wise  complement  to  their  traditional  development  projects  and  for  local 
authorities  it’s  a  concrete  possibility  to  get  committed  to  Third  World  matters  on  its 
own doorsteps. 

One-World-Partnership  Saarbrücken-Nicaragua  is  about  twinning  projects  over  the 
past 30 years, involving NGOs and Authorities on both sides. Fair Trade coffee from 
Nicaragua is offered in the Townhall. 

Project-Partnership  “Endlich  Afrika”  aims  at  setting  up  economic  connections,  like
import of shea butter “Bio & Fair” to create soaps using regional oil and herbs from 
the Biosphäre Bliesgau/Saarland and the shea-butter from Burkina Faso. 

Fair Trade study travels are being organised to Burkina Faso, Kenia and Nicaragua, 
in order to get to know on site the cooperatives as well as to the Fair Trade Country 
Number One in the World (UK, July 2015) to get inspired while discovering the best 
British projects.

94United Kingdom - Scotland - Population: 5,327,700

Scotland’s Fair Trade Support Measures 
- Scottish Government (SG) Policy
- SG Support through ministerial public engagement
- SG funding of Scottish Fair Trade Forum

Scotland: A Fair Trade Nation 

In  January  2007  the  Scottish  Executive  (as  the  Scottish  Government  was  then 
known)  working  with  a  group  of  Fair  Trade  campaigners,  Scotland-based  non-
governmental organisations and representatives from Scottish civic society formed a
co-ordinating body , the Scottish Fair Trade Forum.  

A key focus for the Forum was to promote the cause of Fair Trade in Scotland and, in 
particular, help secure Fair Trade Nation status for Scotland.  The idea of Fair Trade 
Nation  first  grew  out  of  the Fair  Trade  Town movement.    It  was  defined  by  criteria 
drawn up jointly by the then Scottish Executive and the Welsh Assembly Government 
in  2006. These  set  out  the  commitments  that  the  Scottish  Parliament,  Government, 
local  authorities  and  other  public  bodies  as  well  as  civic  society,  businesses  and 
consumers, needed to make to earn Fair Trade Nation status for Scotland. 

The Scottish Government’s approach to Fair Trade has been to offer support for the 
network of Fair Trade campaigners, civic society groups and businesses in Scotland
through the Scottish Fair Trade Forum, awarding the organisation core funding from 
its  International  Development  Fund  since  its  inception.  The  Forum  advocates  that 
businesses  commit  to  fairness  within  their  workforce,  and  towards  their  producers 
and customers. The Forum’s commitment to Fair Trade is drawn from the resolve to 
challenge global poverty and its recognition for the need for fairness in international 
trading  to  preserve  the  dignity  and  rights  of  producers  overseas.  As  such,  the 
Scottish  Government  has  been  an  instrumental  supporter  of  the  Fair  Trade  Nation 
campaign and continues to provide core funding to the Scottish Fair Trade Forum. 

The Scottish Government, through its support for the Scottish Fair Trade Forum, has 
sought  to establish, maintain  and develop  Scotland  as  a  nation  committed  to  Fairer 
Trade.  The  Forum  has  sought  to  foster  this  environment  by  working  with  local 
communities  to  grow  awareness  of  Fair  Trade  and  to  develop  the  market  for  Fair 
Trade  producers,  by  working  with  schools,  hosting  community-based  events, 
promoting  Fair  Trade  through  conferences,  publications  and  events.  Through 
developing  awareness  among  partners  in  Government  and  institutions  such  as 

95United Kingdom - Scotland - Population: 5,327,700

universities  and  colleges  the  Forum  has  encouraged  these  organisations  to  favour 
Fair Trade procurement wherever possible.  

In  February  2013,  Humza  Yousaf  MSP,  Minister  for  Europe  and  International 
Development,  announced  that  Scotland  had  achieved  Fair Trade  Nation  status  and 
since then, the Scottish Government  has sought to maintain and develop this status. 
An independent expert assessment panel had looked at the evidence and reported to 
the  Minister  that  the  criteria  had  been  met.  The  assessment  panel  also  identified 
areas for further work to strengthen Scotland’s commitment to Fair Trade. This report
and its findings formed the basis for core funding from the Scottish Government for 
the Scottish Fair Trade Forum for three more years to 2017. 

96Netherlands - Utrecht - Population: 328 276

Utrecht’s Fair Trade Support Measures 
- Awareness-raising among citizens and
entrepreneurs
- Integrating fairtrade in public procurement
- Searching from commitment of large partners

The  city  of  Utrecht  became  Fair  Trade  Town  in  December  2010,  being  the  first 
municipality among the four biggest cities of the Netherlands. This means the whole 
city  is  involved:  not  only  the  local  governments,  but  also  shops,  restaurants, 
companies, NGO’s and the citizens pay attention to the message of Fair Trade. 

It  is  important  to  maintain  the  title  of  Fair  Trade  city,  because  it  is  a  Millennium 
Municipality which means playing a part in realizing the MDG’s within the city and the
world among us. It’s not only an international solidarity issue, but also a matter of the 
economy  of  our  city.  Local  governments  need  to  be  aware  of  the  consequences  of 
irresponsible  trade  affairs  and  the  impact  that  it  has  on  our  products  and  of  course 
business partners.  

In  order  to  maintain  the  title,  the  municipality  has  a  working  group  which  is 
responsible  for  the  different  activities  in  Utrecht.  This  group  tries  to  integrate  Fair 
Trade in all the sections of the Utrecht community. It is considered as a global affair. 
The ambition of Utrecht is to become the first Fair Trade Province of the Netherlands 
in 2015. This means the cities in the Province of Utrecht will all be Fair Trade Towns 
and will work together on the different goals regarding Fair Trade.  

Promoting Fair Trade 

The  working  group  Fair  Trade  Utrecht  tries  to  create  awareness  among  companies 
and citizens. They work in different ways: 

- Participation  at  entrepreneur  fairs  and  trying  to  convince  them  to  use  Fair  Trade
products in the workplace;

- Organizing a Fair Trade breakfast for entrepreneurs;

- Organizing  a  big  Fair  Fashion  Event  with  a  lot  of  organizations  of  Utrecht.  The
events attract hundreds of people who buy Fair Fashion. During these events people
are convinced about the fact that fair clothes can also be fashionable;

- Developing a Fair Shopping Route in the city of Utrecht, including an application for
smart phones;

- Developing an award program for restaurants, bars and schools;

97Netherlands - Utrecht - Population: 328 276

- Developing a website with an overview of the places where you can find Fair Trade
products;

- It is mandatory that the municipality uses Fair Trade products. All the coffee and tea
used in municipal buildings are of Fair Trade origin. And the coordinator is involved
as advisor in the tendering process.

Current Partnerships 

The city of Utrecht has one sister city in the South, which is Leon in Nicaragua. The 
relationship is based on the Millennium Municipality program. The aim is to facilitate 
entrepreneurs  in  order  to  sell  their  products  on  international  markets.  An  example:
chocolates made of cacao which is produced by the farmers of Leon and will be on 
the Dutch market soon.  

98Belgium – Wallonia – Population: 3,563,060
Brussels – Capital Region – Population: 1,163,486

Fair Trade Support Measures in Wallonia and the 
Brussels-Capital Region
- Regular promotion of fair trade
- The position of fair trade in public contracts
- Coming soon: information sessions for the
municipalities

Fair trade in the municipalities of Wallonia and Brussels 

For  several  years  now,  the  Union  des  Villes  et  Communes  de  Wallonie  (UVCW  –
Union of Cities and Municipalities of Wallonia) and the Association de la Ville et des 
Communes de la Région de Bruxelles-Capitale (AVCB – Association of the City and
Municipalities of the Brussels-Capital Region) have maintained regular contacts with 
the  fair  trade  platform  in  Belgium,  supported  by  the  NGOs  Fairtrade  Belgium
(formerly Max Havelaar), Oxfam-Magasins du Monde and Miel Maya Honing. 

Until now, these contacts have taken practical form mainly in our regular promotion of 
fair  trade  among  our  respective  members,  the  local  authorities  of  Wallonia  and 
Brussels,  using  our  various  communication  channels: website,  newsletter,  monthly 
magazine, etc. 

These explain fair trade issues and the steps to be taken for municipalities to obtain 
the fair trade label, as well as the actions aimed at life in the municipalities, such as 
the Semaine du commerce équitable (Fair Trade Week), Ma classe en fait un Max!
(My  class  does  the  Max!)  or  the  in-depth  discussions  held  with  the  UVCW’s  public 
contracts expert consultant, Mr Mathieu Lambert, on the position of fair trade in public 
contracts in the context of public service supplies procurement.

In the future we are planning, together with the fair trade platform referred to above,
to organise information sessions for our members on this subject, which is becoming 
increasingly  important  among  the  municipalities  and  to  which  we  are  happy  to  be 
able to contribute through the promotion we undertake and wish to develop further.  

This  can  be  seen  from  the  tab  that  will  shortly  be  dedicated  to  fair  trade  in  the 
Europe-International space on the  UVCW website, providing  visitors with full details 
and  useful  links  on  this  subject,  including  in  particular  a  link  to  the  website  of  the 
Commune du commerce equitable (Fair trade municipality) campaign which currently 
has around twenty municipalities that bear the label and over a hundred others that 
are candidates to become fair trade municipalities in Wallonia and Brussels.

99EN

ISBN:978-92-895-0813-1 
DOI: 10.2863/626766

QG-02-15-339-EN-C

EUROPEAN UNION

Committee of the Regions

Local and regional authorities 
promoting fair trade

Rue Belliard/Belliardstraat, 101_1040 Bruxelles/Brussel _ BELGIQUE/BELGIË
Tel. +32 2/282 22 11_ Fax +32 2/282 23 25
www.cor.europa.eu