Fair Trade

What is FAIR TRADE ?

Fair trade is a trading partnership based on dialogue, transparency and respect that 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. (IFAT definition 2002, http://www.ifat.org/ )

Fair Trade organizations have a clear commitment to Fair Trade as the principal core of their mission. They, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade. They can be recognized by the FTO Mark.

Fair Trade is more than just trading: it proves that greater justice in world trade is possible. It highlights the need for change in the rules and practice of conventional trade and shows how a successful business can also put people first.

IFAT prescribes 10 standards that Fair Trade organizations must follow in their day-to-day work and carries out continuous monitoring to ensure these standards are upheld:

• 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 labor – 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;
• Trade relations – maintaining long-term relationships with concern for the social, economic and environmental well-being of marginalized small producers with pre-harvest or pre-production advance payment to producers wherever possible.