Fair Trade Facts

With 20% of our world's population living on less than $1 per day, there is a vast global inequality in the lives of people around the world. Furthermore, the gap between the rich and poor has grown dramatically in the past few decades.  We need to "spread the wealth", and Fair Trade is one way to accomplish just that.

Trade not Aid!

What are our options to help the poor, the small businessman or woman, and the artisans and crafters in small towns and villages around the world?  Simple aid is not the answer.  Some are realizing that the way to help people might not be so much just to give them money, but to put them in a situation where they are using their skills to create and sell products.  People want to have a purpose, they want to contribute to society.  Fair trade gives these artisans a way to get their edibles and beautiful crafts to the worldwide market.

How it Works

Fair Trade is a fully transparent way to trade and sell products globally.  Importers in the Western world team with producing groups in 3rd world countries to arrange to bring their products to consumers in America, Europe, and other developed parts of the world.  Fair Trade importers work closely with the producing groups, farmers, or artisans to bring the product to market.

The
International Federation of Alternative Trade (IFAT) is a global network for Fair Trade, and they have put forth the following 10 principles of Fair Trade:

1.  Creating opportunities for economically disadvantaged producers
Fair Trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.

2.  Transparency and accountability
Fair Trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.

3.  Capacity building
Fair Trade is a means to develop producers’ independence. Fair Trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.

4.  Promoting Fair Trade
Fair Trade Organizations raise awareness of Fair Trade and the possibility of greater justice in world trade. They provide their customers with information about the organization, the products, and in what conditions they are made. They use honest advertising and marketing techniques and aim for the highest standards in product quality and packing.

5.  Payment of a fair price
A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fair Traders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.

6.  Gender Equity
Fair Trade means that women’s work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.

7.  Working conditions
Fair Trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.

8.  Child Labour
Fair Trade Organizations respect the UN Convention on the Rights of the Child, as well as local laws and social norms in order to ensure that the participation of children in production
processes of fairly traded articles (if any) does not adversely affect their well-being, security, educational requirements and need for play. Organizations working directly with informally organised producers disclose the involvement of children in production.

9.  The environment
Fair Trade actively encourages better environmental practices and the application of responsible methods of production.

10.  Trade Relations
Fair Trade Organizations trade with concern for the social, economic and environmental well-being of marginalized small producers and do not maximise profit at their expense. They maintain long-term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. Whenever possible producers are assisted with access to pre-harvest or pre-production advance payment.

Check out our
we support page to get more information on Fair Trade practices and groups who are working tirelessly for the small farmer and crafter.