Fair Trade USA (formerly TransFair USA) has announced its intention to resign membership of Fairtrade International (FLO) effective December 31, 2011.

Fairtrade International (FLO) and Fair Trade USA issued the following joint statement:

“Fairtrade International (FLO) and Fair Trade USA share a belief in the importance of empowering producers and workers around the world to improve their lives through better terms of trade. However, as we look to the future, we recognize that we have different perspectives on how best to achieve this common mission.

As a consequence, Fair Trade USA has decided to resign its membership from Fairtrade International (FLO) effective December 31, 2011.

As we go our separate ways, both Fairtrade International (FLO) and Fair Trade USA are committed to maintaining the benefits we have achieved for farmers and workers, for business partners and for our supporters, and to growing impact over time. We are working together on transition plans.

This transition planning and the consequent operational changes will take some time for both parties to develop, but we are announcing the decision as early as possible out of respect for our many stakeholders. Further communication will follow in the coming weeks.”

http://www.fairtrade.net/single_view1.0.html?&cHash=abf6bda987&tx_ttnews[tt_news]=235

Fair Trade USA’s new strategy will be called ‘Fair Trade for All’. This plan sets out the objective to double U.S. sales for Fair Trade farmers and extend Fair Trade benefits to millions of additional farmers and workers by 2015.

Fair Trade USA’s new approach will include opening up more commodities (in particular coffee) to certification on plantations. There are more details on the Fair Trade USA website:

http://fairtradeforall.com/vision/innovate-the-model

Fairtrade International’s response can be found detailed in an open letter from CEO, Rob Cameron:

http://www.fairtrade.net/single_view1.0.html?&cHash=4793abaa42&tx_ttnews[tt_news]=237

At this early stage is not yet clear what this development will mean for producers, businesses and other stakeholders or how far this will impact the Fair Trade movement beyond the United States. This split immediately raises a number of questions about what sort of presence Fairtrade International will have in the United States, how it will be structured and organised, and whether a new membership organisation could take the place of Fair Trade USA?

The Fair Trade Resource Network is planning to hold two public webinars in late September and October to discuss all the changes announced or anticipated by FTUSA withdrawing from the Fairtrade International certification system. This should prove a good opportunity to post questions and discuss what these changes will mean for the future development of Fairtrade.