People's Recovery, Empowerment and
Development Assistance Foundation, Inc.

Approved at 2003 AGM

INTERNATIONAL  FEDERATION FOR ALTERNATIVE TRADE (IFAT)

 THE WHOLE WORLD OF FAIR TRADE

Strategic Plan 2003 – 2006

CONTENTS:

A.  INTRODUCTION:

Fair Trading Organisations are mission-led initiatives with poverty reduction as their priority.  To bring about changes in international trade rules and conventional business behaviour, Fair Trading Organisations need to engage with consumers to create awareness of the causes of poverty and inequality and to give them the opportunity to make positive purchasing choices in favour of Fair Trade products.   Increasing poverty means that the Fair Trade export markets remain very important.   In many parts of the world there are groups of people whose lives continue to be blighted by poverty, for whom Fair Trade exports plus local marketing initiatives are an essential lifeline.

More than ever before, the need exists for a global Fair Trade network of organisations committed to working together to develop the market for Fair Trade products and to promote Fair Trade ideas.  More and more organisations around the world are expressing interest in joining IFAT.  In many countries Fair Trading Organisations have set up Fair Trade Forums where they can meet to share and learn, to discuss priorities, make plans and take responsibility.  In Asia, the Asia Fair Trade Forum now has its own legal identity and Council.

Trade is growing for many IFAT members and between many IFAT members.    The demand for new market opportunities is growing too. Traditional Fair Trade outlets, such as the world shops, while continuing to provide an enormously important market for Fair Trade products, especially crafts, do not meet producers’ growing demand for market share.   Fair Trade Organisations are looking for new marketing opportunities – domestically, regionally and through the conventional export market - for Fair Trade products of all kinds: household goods, textiles, gifts, food, paper products, fashion accessories and other items.  They are investigating new kinds of trading relationships with the conventional market, and are experimenting with new marketing approaches. 

Regional meetings held in 2002 considered the obstacles to improved market access and what members could do about these.

IFAT aims to develop a strategy for market development that will include all members , finds ways for the market to grow, sales to be maximised and the impact on producers livelihoods increased.   Everything that IFAT does – in networking, monitoring, advocacy, communications and recruitment – is geared to creating conditions in which Fair Trade grows and expands.

IFAT believes that mainstream trade practice often unfairly marginalises poor people.  Fair trade provides solutions to the debate of how to make trade more sustainable.  IFAT has the added value of trading experience, which makes us unique among civil society organisations currently engaged in trade campaigns. 

IFAT members are already engaged in numerous promotional activities as part of their business identity, many of which can be termed as advocacy.  Aspects of this include: public affairs; brand building; messaging; PR and advertising.  Even so, it is clear that the diverse membership in IFAT means that different members have a range of experience of advocacy.  The challenge is to ensure that all IFAT members who are interested in developing their advocacy skills and influence have the opportunity to do so.   For this reason it is essential that a key aspect of IFAT’s advocacy strategy should focus on building the capability and providing the means for each member to participate if they wish to do so. External funding will be particularly important to this.

IFAT has been working with its members all over the world for several years on defining the essence of Fair Trade and the core standards and indicators at its heart.  It has been developing a monitoring system - based on self-assessment, mutual review and external verification – to ensure that Fair Trade Standards are met by Fair Trading Organisations and to provide a basis for their accreditation as FTOs according to the IFAT standards.

It is in this exciting environment of innovation and change, that IFAT introduces its new Strategic Plan which gives priority to market development, advocacy, and promotion of Fair Trading Organisations. 

B.  DEFINITION OF FAIR TRADE 

Fair Trade is a trading partnership, based on dialogue, transparency and respect, which seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South.

Fair Trade Organisations (backed by consumers) are engaged actively in supporting producers, awareness raising and campaigning for changes in the rules and practices of conventional trade*. (*FINE definition 2001)

C. WHAT IS IFAT AND WHAT DOES IT DO?

IFAT is a world-wide network of Fair Trading Organisations, organisations that support Fair Trade, and individual associates in more than 55 countries in Africa, Asia, Europe, Latin America, North America and the Pacific Rim.  It has an Executive Committee elected from amongst the membership by the membership and an international Secretariat of appointed staff.

The Executive Committee is responsible for creating and implementing  plans which are developed from the strategic priorities agreed by the membership  at the Annual General Meeting. It is the guardian of the IFAT Constitution, Code of Practice and Standards for Fair Trading Organisations. It makes policy, and decides which organisations may join the network.

The international Secretariat is active in those areas where IFAT can add value to the Fair Trade Movement at the global level. In all other areas, it is a facilitator of members’ initiatives, using its position at the centre of a global network to make the appropriate links.

D.  STRATEGY

1. IFAT’s Mission

To improve the livelihoods and well-being of disadvantaged producers by linking and promoting  Fair Trading Organisations, and speaking out for greater justice in  world trade.

2. IFAT’s broad aims

• To  be recognised as the co-ordinator, monitor and advocate of the global network of Fair Trading Organisations.

• To substantially increase Fair Trade within the Fair Trade chain and with conventional business.

3. Objectives

IFAT’s objectives are: 

1. to support the growth of the Fair Trade market.

2. to enhance the credibility of IFAT members, through monitoring, in order to build the trust of consumers in products supplied by Fair Trading Organisations.

3. to advocate the principles and practice of Fair Trade as a means of fighting poverty, and to provide political support and recognition to IFAT members.

4. to facilitate the circulation and diffusion of relevant information throughout the network of IFAT members.

5. to  attract to IFAT all organisations which have Fair Trade as their main activity, giving particular emphasis over the next three years to:

• Fair Trading Organisations producing, and trading in, food products

• Fair Trading Organisations in countries with few or no current IFAT members

• and Fair Trading Organisations in Latin America.

6. to provide the resources needed to pursue the objectives written in this plan.

4. From Objectives to Activities

Each objective described in  point 3 has a number of connected, specific activities:

4.1 Market Development

IFAT will establish a Market Development Sub-Committee in late 2003 whose key responsibility will be the preparation of market development strategy using research begun in 2002.   This strategy will include the following activities:

a) co-ordinating work on developing a favourable environment for the Fair Trade market to grow.

b) holding workshops on market development at international Conferences in 2003 and 2005  and at regional meetings in 2004 and 2006.

c) with support from others, creating new opportunities for business and marketing education and learning which meet Fair Trade Organisations’ own perceived needs 

d) improving members’ access to market information.

e) documenting IFAT’s learning on, and experience of, market development and trading

f) acting as an information point for buyers wishing to source Fair Trade products.

4.2 Monitoring  

 IFAT will:

Develop further and promote the Standards for Fair Trading Organisations.

continue to improve the three step monitoring system - consisting of self-assessment, mutual review and external verification – leading to accreditation of IFAT members as  Fair Trading Organisations.

discuss with members the best way in which to introduce a Label for products supplied by Fair Trading Organisations, and take action as required to develop the appropriate regulations and procedures.

Promote the use of the IFAT accreditation mark on material which is used to promote member organisations

use the IFAT Accreditation system as the basis for investigating possibilities of an agreement with FLO regarding the certification of IFAT’s member organisations as Fair Trading organisations

To investigate the possibility of an agreement with FLO whereby Southern Fair Trading organisations can apply for a FLO certified Fair Trade label on their products

Work with FLO to extend the Fair Trade Labelling system to cover many more non-food products so that the global Fair Trade Mark may be used by FLO licencees on goods produced, exported and/or imported by IFAT members.

To present proposals for agreements with FLO and/or other organisations during IFAT’s 2004 regional meetings.

hold regular workshops,  in co-operation with other organisations as appropriate, to improve standards in Fair Trading Organisations.

provide support to members as they carry out self-assessment.

ensure that IFAT members fulfil the reporting obligations required by the monitoring system.

4.3  Speaking out for Fair Trade

4.3.1 IFAT will deliver the message of Fair Trade by

1. developing and then communicating IFAT’s particular perspective on the current debates around trade and development. 

2. lobbying for improvements in the political and trade systems in favour of Fair Trade.

3. organising yearly a World Fair Trade day

4.3.2 IFAT will develop the voice of Fair Trade by:

1. building the capacity of IFAT members, and IFAT as a network, to conduct effective advocacy campaigns.

2. increasing its capacity to communicate to the media about IFAT and Fair Trade.  A press and communications working group will be established for this purpose.

3. upgrading and then maintaining its web-site.

4.4 Keeping the network informed

IFAT will:

1. communicate clearly and regularly with its members

2. collect and disseminate relevant information

3. produce Trade Post quarterly and electronic e-mail updates twice monthly to inform members of IFAT’s activities and channel relevant enquiries and commercial opportunities towards the membership

4. publish an annual Directory of its members and associates for its members and associates.

5. provide better, more consistent and standardised information to Fair Trading Organisations and continue to host the IFAT Catalogue of Catalogues.

6. respond reactively to requests for information from members  of the public and aspiring Fair Trading organisations across the world.

 4.5 Recruitment and Retention of Members

4.5.1   Recruitment - IFAT will:

1. Seek to increase our membership levels using the Membership Recruitment Strategy

2. Relate our membership criteria to Standards for Fair Trading Organisations

3. Review membership application procedures on a yearly basis

4. Review membership recruitment strategy on a yearly basis

4.5.2 Retention - IFAT will deliver a defined set of services provided by the IFAT Secretariat to existing and new members which include:

1. a forum for discussion and learning with other members;

2. networking opportunities offered by IFAT’s regional and international conferences;

3. a structured monitoring programme using self-assessment methodology to add credibility to member organisations and their products.

4.6 Finding the human and financial resources IFAT needs

IFAT will:

1. continue to cover the core costs of the international Secretariat through membership subscriptions.

2. during 2003, seek the advice of members of the Finance Sub-Committee as well as professional fund-raisers on how to raise the resources needed to implement this plan

3. look creatively at the resources that already exist within the network to see how they may be used more effectively.

4. consider the use of volunteers and interns to work with IFAT to implement the plan.

E.   BUILDING A NEW STRUCTURE FOR IFAT

1. IFAT will reflect in its structure the networked nature of the Fair Trade Movement with a small international Secretariat based in the strategically best location and a number of Sub Committees and international Working Groups.

2. The key functions of the Secretariat will be:

   1. to implement the policies and strategies established by the Executive Committee.

   2. To carry out specific functions required by a membership body:

1. Providing support  to the Executive Committee, Sub-Committees and Working Groups

2. keeping records

3. collecting subscriptions

4. recruiting new members

5. producing a newsletter

6. issuing information updates electronically

7. providing a general information and advice service

8. fund-raising

9. and managing special projects.

3. There will be 5 international sub-committees: 

1. Finance

2. Market development

3. Monitoring

4. Membership accreditation

5. Advocacy

There will also be a Trade Post Editorial Board and, from 2004, a Press and Communications Working Group.

4. Sub-committees will be supported by resource persons who will act as secretary to each sub-committee and be responsible for the implementation of agreed strategy in each area.  These persons will report to the Executive Director who acts as secretary to the Executive Committee and to the Finance Sub-Committee.  

5. Sub-Committee membership  will be drawn from IFAT members  and associates (and external experts, if required) with due regard being given to balance of skills, gender and geography.  Each sub-committee is authorised to form working groups to carry out specific pieces of work as required.

6. 6.Sub-Committees will be chaired by a member of, and make recommendations to, the Executive Committee.   They will have no direct decision-making power. 

7. IFAT staff/ resource persons may work in a variety of locations in line with IFAT’s desire to de-centralise its operations.

8. IFAT will support its members to create regional forums in order to boost co-operation and collaboration in each region.

9. IFAT will work with each of the regional forums to find external resources to cover the costs of implementation of each region’s own strategic plans developed autonomously, but in line with the IFAT overall strategic direction, by the regional forum membership.

10. IFAT will continue to encourage the creation of more national Fair Trade platforms.

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