Agreement between Irish Fair Trade Network Limited and FLO International eV.

18 October 2006

Irish Aid, the Irish Government’s official overseas development assistance programme, has agreed to donate an amount of EUR 3.5 million to FLO International e.V. The project , called Building Trade Capacity: Fairtrade and Ethical Trade – A Strategy for Poverty reduction, aims to provide funding to producer support and capacity building activities. The project will mainly focus on Central American countries (Guatemala, El Salvador, Nicaragua and Honduras), and has a five year funding cycle, i.e. 2006-2010, starting July 1st 2006.

Peter Gaynor, Fairtrade Mark Ireland Director, comments: “What is interesting about the grant being approved is that it came after the first public consultation on Ireland's growing aid budget given the Governments commitment to reach 0.7% in overseas development assistance by 2012. The Irish Government now commits to continue to support Fairtrade. This result was made easier by the support of volunteers and the general Irish public.”

The following activities are some of the first to benefit from the funding: a Credit Fund to fund six producer organizations to increase their access to Fairtrade; a Fairtrade Tourism feasibility study; additional funding for the CLAC producer network (the Latin American and Caribbean Initiative of Small Fairtrade Producers) etc.  

As Peter Gaynor explains: “The challenge now is to ensure that producers will benefit from the investment in terms of greater market access on Fairtrade terms, not just in Ireland but internationally”.

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