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Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.


Sri Lanka steps up efforts to meet new Fair Trade standards

Thursday, June 26, 2014 > 08:25:12

(Daily Mirror)

As Fairtrade becomes the latest sales driver in international markets, Sri Lanka has stepped up its efforts to meet the new standard.
A promising Lankan export niche has become the successful testing ground for Sri Lanka’s entry into global Fairtrade certification regime-and the Export Development Board (EDB), which leads the initiative has received encouraging feedback from many–including a global consultant on Fairtrade.

“I am impressed of Sri Lanka’s craft makers and exporters. Their products are of high quality,” said Paul Myers, visiting USAID/VEGA Fairtrade Expert at EDB recently, making his concluding remarks on his three-week long consultation visit to Sri Lanka to assist EDB’s first Fairtrade initiative.

The first ever national initiative on Fairtrade in the country, the programme aims to introduce and implement Fairtrade concepts for the craft sector in Sri Lanka for a period of 2-3 years. The first stage of the three stage programme was already concluded in 2013.

Nine firms, - Midaya Ceramic, Kandygs Handlooms, Island Craft, Suntex Weaving Industries, Earth Bound Creations, Trickledown, Maximus, Selective Designs, and Pung Craft- have succeeded in clinching EDB’s support to apply for Fairtrade certifications in this first initiative.

The Fairtrade Certification has been identified as one of the tools for the sustainable economic development of the world and defined as an alternative approach for conventional international trade. Fair trade certification mark now appears in thousands of products in international markets, and in Germany, where more and more consumers insist on fair trade certifications, revenues of such products increased by 22 percent in 2013. In UK, Fairtrade products saw a 19 percent increase on sales in 2012.

 “I have visited several craft makers in Sri Lanka including some handloom makers. I am impressed of the craft makers and exporters whom I met. Their products are of high quality and in par with international standards. Also, the initial preparatory work on Fair Trade of most participating companies in this project too has been highly encouraging,” Myers said.

According to the EDB, the total lifestyle and craft exports that stood at $ 78 million in 2011, has increased to $ 97.3 million, a 25 percent growth. EDB believes that this niche export sector to be promising when it comes to the premium end of global accessories and lifestyle markets.

Craft sector in Sri Lanka is mainly a cottage based industry and comprised of small and medium entrepreneurs. The crafts of Sri Lanka are a combination of the traditional skills and modern technology. This industry directly contributes to the social development in the rural communities and assist them for better income and more importantly, is instrumental in absorbing the rural talents and capabilities to the export mainstream.  According to the EDB, the Sri Lankan craft products are manufactured targeting the niche export market where mass production is not required.

Sri Lanka is also a signatory to all International Labour Conventions under the International Labour Organization (ILO) in this context the EDB believes that introducing Fair Trade concept to the Sri Lanka craft sector will enable manufacturers to market their products to the demanding niche markets and receive a premium price.  With a view to promote Fair Trade as a marketing tool among identified craft manufacturers in Sri Lanka and facilitate them to export their products under Fair Trade label targeting the niche export market, EDB  commenced the implementation of a programme to introduce and implement Fair Trade for Sri Lanka’s craft sector starting 2013. EDB has also successfully concluded its Fairtrade awareness session in Batticaloa with 45 participants-which included even deserving widows in the area working on handlooms and crafts.

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