What is Fair Trade?
Fair trade is an organized social movement that promotes standards for international labor, environmentalism, and social policy in areas related to production of Fair trade labeled and unlabelled goods. The movement focuses on exports from developing countries to developed countries.
Fair trade's strategic intent is to deliberately work with marginalized producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency. It aims to empower them to become stakeholders in their own organizations and actively play a wider role in the global arena to achieve greater equity in international trade.
Fair Trade Federation (FTF) criteria are:
- Paying a fair wage in the local context.
- Providing equal employment opportunities for all people.
- Offering employees opportunities for advancement.
- Engaging in environmentally sustainable practices.
- Building long-term trade relationships.
- Being open to public accountability.
- Providing technical and financial assistance to producers when possible.
- Providing safe and healthy working conditions within the local context.
For more information, visit FairTradeFederation.org
As Members of the Fair Trade Federation (FTF) we are committed to the Principles and Practices that define Fair Trade
FTF Principles and Practices
FAIR WAGES IN THE LOCAL CONTEXT
Producers receive fair compensation for their products and paid more than the country's minimum wage. Referred to as a 'living wage', this enables them to cover basic needs, such as food, shelter, education and health care for their families. Paying fair wages does not necessarily translate to higher prices for the consumer. Since fair trade organizations (FTOs) bypass exploitative middlemen and work directly with producers, they are able to reduce costs and return a greater percentage of the retail price to the producers.
PARTICIPATORY WORKPLACES
FTOs work primarily with small businesses, democratically run associations, and/or cooperatives that bring significant benefits to workers and their communities. Cooperatives and producer associations provide a healthy alternative to large-scale manufacturing and sweatshops conditions, where unprotected workers earn below minimum wage and most of the profits flow to foreign investors and local elites who have little interest in ensuring the long term health of these communities. By banding together, workers are able to access credit, reduce raw material costs and set better prices for their products. Profits are distributed more equitably, and are often reinvested in community projects, such as health clinics, childcare, education and training. Workers practice important leadership and organizing skills, enabling self-reliant grassroots-driven development. Safe and healthy working conditions are maintained and producers gain greater control and decision making power over the use of their resources.
ENVIRONMENTAL SUSTAINABILITY
Fair trade organizations engage in environmentally friendly practices, which manage and use local resources responsibly. Many FTF members work directly with producers in regions of high biodiversity to develop products based on sustainable use of their natural resources, giving communities an incentive to preserve their natural environments for future generations.
FINANCIAL AND TECHNICAL SUPPORT
Small-scale farmers and artisans in the developing world lack access to affordable financing. FTF members that buy products directly from producers often provide financial assistance either through direct loans, prepayment or link producers with sources of financing. Unlike many commercial importers who often wait 60-90 days before paying producers, many FTF members supply prepayment so that producers have sufficient funds to cover raw materials and basic needs during production time. They also often provide other critical technical assistance and support such as market information, product feedback and training in financial management. Unlike commercial importers, FTOs establish long-term relationships with their producers and help them adapt production for changing trends.
CONSUMER EDUCATION
Fair trade organizations educate consumers about the importance of purchasing fairly traded products that support living wages and healthy working conditions. By defining fair trade and conducting business in a manner that respects workers' rights and the environment, the fair trade movement strives to educate consumers about the often hidden human costs of their "bargains." By providing information about producers' history, culture and living conditions, FTOs enhance cross-cultural understanding and respect between consumers and communities in the developing world. They also educate consumers and policy makers about inequities in the global trading system.
RESPECT FOR CULTURAL IDENTITY
FTOs encourage the production and development of products based on producers' cultural traditions, as adapted for Western markets. They seek to promote producers' artistic talents in a way that preserves cultural identity.
PUBLIC ACCOUNTABILITY
FTF members' finances, management policies, and business practices are open to the public and monitoring by the Fair Trade Federation.
For any other questions please feel free to contact us.
To learn more about the Fair Trade Federation please visit www.fairtradefederation.org
