FAIR TRADE DEFINED:

Fair Trade is a sustainable system that endeavours to empower disadvantaged producers through payment of a fair price, democratically organized workplaces, technical assistance, social programming, equality for all, transparency, trust and environmental protection. It is a method of creating sustainable economies and new markets in otherwise poor developing countries, while simultaneously preserving traditional customs and practices.

WHAT IS THE PROBLEM WITH CONVENTIONAL TRADE?

Traditional North-South trade is problematic because it approaches trade as purely an economic relationship. This has created a deepening divide between wealthy and poor countries—while wealthy multinational companies grow bigger and richer, producers in developing countries get poorer.

Many Western countries are subsidizing their own farmers and producers so much that worldwide market prices are kept artificially low, forcing producers to sell their products at lower and lower prices. Often this means producers do not receive enough money to even cover the cost of production, and they have no power to demand higher prices.

Working conditions are unsafe, children are forced to work to generate extra income for the family and women are not treated as equals. Producers have little options and they, their families and their communities continue to suffer. The state of international trade is dismal.

HOW IS FAIR TRADE DIFFERENT?

Fair Trade is a system of trade that, unlike conventional trade, puts disadvantaged producers first. It is a trading partnership based on dialogue, transparency and respect, and seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers, especially in the South.

Fair Trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional trade.

PRINCIPALS OF FAIR TRADE:

The 9 standards/principals for Fair Trade are:

• Creating opportunities for economically disadvantaged producers; supporting the poorest producers
  
• Transparency and accountability; dealing fairly and openly with trading partners
  
• Capacity building; developing the skills of producers and creating opportunities for trading their products
  
• Promoting Fair Trade; telling as many people as possible about Fair Trade and informing customers where products have come from
  
• Payment of a fair price; ensuring that producers receive a fair price for their products
  
• Gender Equity; providing equal pay and opportunities for women and men
  
• Working conditions; ensuring that producers are working in a healthy and safe place
  
• Child Labour; ensuring that the UN Convention on the Rights of the Child is respected
  
• The Environment; ensuring that materials used in production and packing do not damage the environment

All members of IFAT and COFTA are guided by these principles which, if fulfilled allows them to use the FAIR TRADE ORGANISATION MARK.