Fairtrade responds to Secretary of State Penny Mordaunt speech on UK Aid budget

Fairtrade farmers

Tim Aldred, Head of Policy and Research at The Fairtrade Foundation, said; “The Fairtrade Foundation has over 20 years of experience harnessing the power of consumer markets to make trade work for the poorest. 

"Global trade does not automatically ensure poverty reduction and sadly exploitation in supply chains, and poverty incomes and wages, remain a reality for far too many producers and workers around the world. Fair and ethical trade can transform people’s lives but without the right interventions, using UK Aid to boost private investment and trade could reinforce existing power imbalances in global trade and finance. We hope to hear much more from DFID on this point, and to understand how they will focus on making markets fair so that trade can work for everyone. 

"The Fairtrade Foundation remains committed to the idea of aid and trade, not an either/or, and the Overseas Aid Budget is so critically important because of its legally required focus on poverty reduction. The global challenges of poverty reduction and climate change remain great, especially in the poorest countries and communities, which rarely see private investment and which remain disconnected from regional and global value chains.

"As the Secretary of State herself pointed out, efforts to meet the Global Goals face a colossal financing gap of $2.5 trillion and so now is not the time to redefine aid in a way that reduces the public contribution. Any funding for sustainable development which is generated through private investments like our pension-funds, or through schemes such as the Fairtrade Premium, should be celebrated, but regarded as an additional contribution to achievement of the Global Goals.”