Fairtrade Wants G20 to Protect Developing Countries Farmers, Workers from Worst Effects of COVID-19 Crisis

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G20 is currently under intense pressure from Fairtrade International to protect farmers and workers in developing countries from the worst effects of the COVID-19 crisis.

The pressure is coming as the confirmed positive cases of coronavirus in Nigeria are racing to the thousands figure.

Already, the Nigeria Centre for Disease Control (NCDC) has said that the confirmed cases have shut up to 981 with 108 new cases recorded on Thursday.

NCDC says as at 11:30 pm on Thursday, Lagos, obviously the epicentre centre, recorded 78 of the new cases.

The Federal Capital Territory (FCT) follows with 14 cases, five in Ogun State and four in Gombe State. Others are Borno three, Akwa Ibom two, while Kwara and Plateau have one case each.

NCDC also reports that while 197 patients have been discharged, the country regrettably has recorded 31 deaths so far.

However, Fairtrade is concerned with changing the way trade works through better prices, decent working conditions, a fairer deal for farmers and workers in developing countries.

Across the globe, CEOs of Fairtrade organisations have written to the Chair of the G20 who is also King and Prime Minister of Saudi Arabia, Salman bin Abdulaziz Al Saud, to call on the bloc leaders to play ball.

Smallholder farmers and farmworkers, including Fairtrade farmers, supplying global food and clothing supply chains, are said to be at high risk of illness and mortality from COVID-19.

Chief Executive Officer of Fairtrade International, Darío Soto Abril, says: “We are deeply concerned about the effects that the virus will have on farmers and workers across the developing world, including those producing food and other goods that G20 countries rely on. 

‘’There is an urgent need to provide humanitarian measures to protect people’s health and lives while at the same time support economic measures to ensure continued livelihoods.”

Going by the last UN University forecasts, more than 500 million people could be pushed into poverty due to the coronavirus crisis. 

Already, the farmers and workers Fairtrade works with are among the world’s poorest people, living in communities with weak or non-existent safety nets, inadequate health care and safe water and sanitation, and at risk of hunger and malnutrition.

The organisation is warning that the crisis is disrupting global supply chains. 

Lockdowns in importing countries, while necessary for public safety, are resulting in a rapid and severe drop in orders in some supply chains. 

This has led to heavy job and income losses amongst groups who were already vulnerable and will increase poverty unless urgent support is given.

In Kenya, for instance, tens of thousands of flower workers have lost their jobs, with no local work alternatives, and there is growing concern about the long-term financial stability of flower farms. 

A similar situation is happening in Ecuador, where flower workers have started to be layoff or put on hold by organisations due to low sales. 

In the meantime, the price of tea in both India and Sri Lanka, already low, is reported to have plunged by almost 40% due to reduced demand.

Global sales of Fairtrade products total around $9.00 billion a year, but Fairtrade producer organisations stand to lose around $380 million a year in Fairtrade Premium if they are unable to sell their products. 

Even if demand for imports does resume, developing countries themselves have begun, or are likely to begin, their lockdown measures, which will lead to further losses of employment or income unless special assistance is given to farmers and workers.

Continuing, Abril says “we urge G20 leaders to push for a comprehensive response to this crisis for low-income countries across five areas where the action is needed. The Fairtrade movement supports around 10 million people in total and we stand ready to be a partner to minimize the impact of this crisis on the world’s poorest and most vulnerable communities.

“By supporting producers through this emergency, both economically and in public health, we will support G20 food security during the crisis and in recovery. Now, more than ever, the G20 has a huge shared interest in ensuring the resilience and sustainability of global supply chains.”

Fairtrade’s Action Points:

Protection for Jobs and Livelihoods

Whilst necessary for public safety, lockdowns and other restrictions risk significant unemployment or loss of farmer income unless support is given to farmers and workers over this period.

Many of the low-income countries in which we work have weak to non-existent social safety nets, and loss of income will result in increased poverty and hunger.

We, therefore, call on G20 governments to work with origin governments, retailers and traders to agree on furlough schemes for supply chains that import food or goods from low-income countries, focused farmers and workers most at risk from poverty and hunger.

Furlough schemes could be financed by a mixture of mechanisms, such as;

Donor support from the World Bank and development agencies

Commitments by retailers and manufacturers to provide forward payments or forward contracts to secure their supply chains o provision of trader loan holidays

VAT and payroll tax holidays for workers that pay taxes

Loans to Small Producer Organisations or commitments by retailers and traders to forward contracting and trader loan holidays for the producers that supply them

In some cases, a skeleton workforce will be needed to keep the farms open to protect the productive base and future sales of producers. For example, the cost of doing this for the 44 flower farms that Fairtrade works with in Kenya would be €2.8 million over 3 months.

At a minimum, farmers and workers must be provided with adequate food and essentials. For example, providing sufficient food to workers on all Fairtrade flower farms in Kenya would cost €270,000 over 3 months.

Personal Protective Equipment

Where low-income country governments are not advising a lockdown of farms and plantations, adequate PPE and training on prevention and social distancing must be provided to farmers and workers.

Where skeleton workforces are necessary to keep farms and plantations economically viable, farmers and workers must be equipped with adequate PPE. For example, to issue PPE supplies for the 40,000 employees on Fairtrade flower farms in Kenya would cost €5m.

We urge the G20 governments to work with retailers and traders to ensure this PPE, and training is provided.

Support healthcare strengthening

Estimates from Imperial College London suggest there will be 900,000 deaths in Asia, 300,000 in Africa and 160,000 in Latin America and the Caribbean.

Aid should be given to help developing countries to strengthen public healthcare systems, including measures to prevent and contain the disease.

Such support should have a particular emphasis on vulnerable communities in rural, as well as urban, areas.

Wider Economic Measures

We support the call by former Presidents and Prime Ministers with INGOs including Oxfam and Save the Children for a G20 task force to coordinate a global response to the COVID-19 crisis.

We support their call for $150 billion to be given to developing countries to help them with their health care, social safety nets support and other urgent help, and for Special Drawing Rights of $500-$600 billion to be proposed by the IMF.

We also support calls for the cancellation of debt owed by low-income countries, many of who rely on export revenues that have fallen due to this crisis.

To ensure the continued flow of products from developing countries, we urge G20 countries to keep existing trade arrangements with developing countries in place and to take steps to offset the disruption – including the preventable perishing of food – caused by border closures and delayed customs procedures.

Sustainability

Whilst protecting jobs and lives is the most urgent short-term need, we urge G20 leaders to seek opportunities to ensure the above investments help global supply chains in food and other goods become more sustainable and climate-resilient, in line with the SDGs and initiatives such as the EU’s Green New Deal.

We should follow this unprecedented halt of the global economy with a fair restart that transforms supply chains. By tying the stimulus packages to sustainability goals and specifically fostering fair supply chains that increase empowerment through living income and wages, we can make producers and workers more resilient towards future crises.

COP26, whenever it now takes place, will be a key opportunity to agree on a new approach.

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