Welcome to the Not Just a Trading Company 'Glossary'
We hate it when people use big words or jargon ... and we haven't got a clue what they are talking about! So we are doing our best to make sure that our readers and our groups don't feel excluded in such a way.
So, if when reading our website and materials you have found some words or terms that are unfamiliar to you - this page is here to help. If all this talk of 'trade justice', 'subsidies' and 'business ethics' is making your head spin - don't worry! Just have a look at our Not Just a Glossary below!
This glossary is a working document, so if you think we need to add something else to it - please let us know.
Agriculture: The science, art, and business of cultivating soil, producing crops, and raising livestock. (In other words, farming!)
Agri-business: Farming - as an overall business - concerned with the production, processing, and distribution of agricultural products, machinery and supplies.
CAP: Common Agricultural Policy. The European Union (EU) policy covering tariffs, quotas and subsidies throughout the EU farming sector.
Consumer: A person who purchases goods and services for their own personal use
Cooperative: A way of working together 'cooperatively' toward a common goal. Also can be an official farm, business, or other organisation which is owned and run jointly by its members, who share the profits or benefits.
Cost of production: The total amount of money spent on producing something to sell.
CSR: Corporate Social Responsibility. how companies manage the business processes to produce an overall positive impact on society
Dumping: Exporting a product at a price lower than the cost of production.
Economy: The wealth and resources of a country or region, especially in terms of their overall production and consumption of goods and services.
Escalating Tariffs: Increasing tariffs according to the level of processing of a good, e.g. the tariff on chocolate being greater than the tariff on cocoa. Makes it hard for poor countries to benefit from processing raw materials. (see Tariff below)
Ethical business: a business that operates responsibly and with a concern for moral principles in its conduct and interaction with the environment, people and communities.
Ethical purchasing: the deliberate purchase of products and services that the customer considers to be made ethically - i.e in a moral and responsible way and without harming people, animals, the environment
Ethical trade: Trade based on social and environmental responsibilities
Ethical Trade Initiative (ETI): The Ethical Trading Initiative is an alliance of companies, trade unions and voluntary organisations who work together to improve the working lives of people across the globe who make or grow consumer goods (everything from tea to T-shirts, from flowers to football)
Fair Trade: (Written as two words) An approach - or movement - that began in the 1960s and which concerns itself with ensuring that fair prices and conditions are met, in partnership with producers in developing countries. Take a look at the WFTO 10 principles of Fair Trade WFTO 10 Principles
Fairtrade: (Written as all one word) - 'Fairtrade' is often described as the 'Mark' - or the brand/badge/logo that show that a product has been passed as being 'Fairtrade Certified' - a specific system that promote a certain method of trading more fairly.
Fairtrade Foundation: An organisation based in the UK which certifies products as 'Fairtrade'. This system means that a product has also complied with the supply-chain criteria of FLO - the International Fairtrade Labelling Organisation. The Fairtrade 'Mark' on a product provides a guarantee that it has been produced in accordance with internationally agreed Fairtrade standards
Free trade: An approach that means abandoning government interventions with the trading systems. Interventions may mean taxes, subsidies or regulations. Free trade sees this as 'interference' and prefers 'the free market' approach where there is NO intervention or changes to a 'free market system'. The Trade Justice Movement tends to oppose to such an approach and quotes the mounting evidence that the free trade model has been responsible for increasing poverty, harming the environment and eroding labour standards across the world.
G8: Group of 8 most powerful leaders in the world (Canada, France, Germany, Italy, Japan, Russia, UK and USA.) Decisions made at their annual summits can influence virtually any international summit or agreement in the world.
G20: Group of 20 of the most prominent nations in the developed and developing world made up of Argentina, Australia, Brazil, Canada, China, France, Germany,India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK, USA and the European Union.
ILO: International Labour Organization (ILO). The organisation responsible for drawing up and overseeing international labour standards. It is a UN agency and brings together governments, employers and workers to promote 'Decent Work for all'.
International Monetary Fund (IMF): Originally set up to give loans to countries to support the economy. However, since the 1980s has only given loans in return for countries agreeing to specific policies - which include liberalising trade (i.e. Free trade practices).
Labour rights: Labour rights or workers' rights are a group of legal rights and human rights having to do with labor relations between workers and their employers
Liberalisation: Reducing the role of government in an economy leaving it to market forces. Liberalisation means the progression towards a system of Free trade.
Market access: The removal of tariffs and other trade barriers, making it easier for other countries to sell their goods and services.
MDGs: Millennium Development Goals. Targets set by world governments to reduce global poverty by 2015. The goals range from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education.
Producer: A person, company, or country that makes, grows, or supplies goods or commodities for sale.
Social enterprise: Businesses or organisations which have no shareholders and which are established and run by people in the voluntary and community sector.
Subsidy: Support provided for traders for reasons such as developing new industries or maintaining employment. Might be a straightforward grant, or could be something like a tax exemption.
Supply Chain: A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer
Sustainability: Able to be sustained for an indefinite period without damaging the environment, or without depleting a resource; usually renewable too.
Tariff: Tax imposed on imports and exports. Can be an important source of revenue for a government. Can also be used to make imports more expensive in comparison to locally produced goods, protecting local traders.
Trade justice: Trade justice is a campaign by non-governmental organisations lobbying for changes to the rules and practices of world trade so that poor people and the environment benefit. These organisations include consumer groups, trade unions, faith groups, aid agencies and environmental groups
'Triple bottom line': A business and development philosophy incorporating the three E's: equity, environment, economics. Also referred to as the three P's: people, planet, profit.
World Bank: An institution Set up to give loans to countries for development projects. Since the 1980s has only given loans in return for countries agreeing to specific policies - which include liberalising trade.
World Trade Organisation (WTO): Formed in 1995, replacing its predecessor GATT (General Agreement on Tariffs and Trade). The secretariat facilitates the writing and enforcement of international trade rules. It is headed up by the Director-General of the WTO (currently Pascal Lamy). Trade rules themselves are agreed by the member countries. The WTO staff facilitate the process. There are currently 153 member countries in the WTO.