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, marginalised producers and workers, especially in the South. Fair Trade organisations (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. Fair Trade is about people who believe in a future of full of justice.
The essence of Fair Trade
- Deliberately working with marginalised producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency
- To empower producers and workers as stakeholders in their own organisations
- Actively to play a wider role into he global arena to achieve greater equity in international trade
Key principles of Fair Trade
- 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
- Transparency and accountability: Fair Trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners
- Capacity building: Fair Trade is a means to develop producer's independence. Fair Trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets
- 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 or men. Fair Traders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing
- 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
- 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
- The environment: Fair Trade actively encourages better environmental practices and the application of responsible methods of production
- Promoting Fairer Trade: 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.
The impact of Fair Trade
The benefits generated by Fair Trade materialise in different forms at different levels. There is a range of direct benefits and indirect benefits for producers and their organisations as well as for consumers and importers.
- Financial benefit: the long-term nature of the trading relationship and guaranteed minimum prices lead to economic sustainability and security for entire communities
- Social and human impact: Fair Trade promotes dignity and empowerment on multiple levels:
- living conditions improve. Social premiums mean that communities benefit from improved opportunities in the form of education, health, and long-term employment prospects, and with them, expectations of a better life
- democratic decision-making processes thrive. Suppliers and importers communicate on an equal level
- workers enjoy political freedom and the right to free association, where they can speak out for themselves and organise themselves to defend their rights
- consumers have a voice and can actively contribute to a social justice movement, creating awareness of the issues and influencing other consumers' habits as well as influencing policy
- Ecological impact:
- small-scale farming often uses organic methods by default, to the direct, long-term benefit of the environment and to the lives of the farmers and their families
- the existence of small-scale production techniques helps prevent proliferation of deforestation
