Commodities and Fair Trade
Commodities
Commodity dependence
is a key factor in the economies of a significant number
of developing countries with more than 50 developing countries
depending on 3 or fewer commodities for over half of their
export earnings. Many commodities are experiencing their
lowest price for many years and this is resulting in immense
hardship in these producing countries.
The former Secretary of State, Patricia Hewitt, set up a Government-Industry
Working Group on Commodities in December 2001 to consider
what industry and government could do together to improve
the situation of poor commodity dependent farmers.
Commodities Report  (150 kb)
Please email Pamela.brown@dti.gov.uk to request
a printed copy.
The UK is actively involved in the work of the
Common Fund of Commodities, and DTI provides the UK Governor
and Alternate. The UK also plays a part in a range of commodity
bodies either as an individual member or through EC membership.
The
European Commission published a Communication on Agricultural
Commodity Chains, Dependence and Poverty – a proposal for
an EU Action Plan in February 2004.
Commodities Communication (900 kb)
UK Government’s strategy paper on commodities
(485 kb)
Fair trade
The
Government supports the aims of the fair trade movement
and believes that Fairtrade gives an instant and clear indication
to consumers that disadvantaged consumer groups in developing
countries receive a minimum price above that offered by
mainstream markets.
By choosing
Fairtrade products consumers are making a real difference
to the livelihoods of some of the poorest farmers in the
world, which can make the difference between simply existing
and having a sustainable future.
The Government
encourages companies to participate in fair trade practices.
Government support for Fairtrade is part of a wider program
designed to mainstream social responsible practices in the
corporate sector.
The Government
actively supports the Fairtrade Foundation in raising business
and consumer awareness of fairly traded products through
educational and promotional activities.
We do, however,
not see fair trade as a solution to commodity price fluctuations
and/or declines prices or limited market access for poor
producers. This is a complex problem and unfortunately,
there is no simple solution.
For further details, contact:
Andy Brady
Tel: 020 7215 5778
Fax: 020 7215 2235
E-mail: Andrew.Brady@dti.gsi.gov.uk
Or
Peter Stephens
Tel: 020 7215 5550
Fax: 020 7215 2235
E-mail: Peter.Stephens@dti.gsi.gov.uk
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