Fair trade is a growing movement dedicated to the principles of rewarding workers and producers fairly for their work or products. The goals of fair trade are economic and ecological sustainability accomplished through key principles:
- A Fair Price or Wage. For commodities such as coffee or tea, fair trade price standards are set by international Fair Trade Labeling Organization. The price attempts to cover the cost of production and a living wage to cover the basics of food, shelter, clothing, education, and medical care. Importers and retailers are then screened and certified by TransFair USA to ensure that they are paying the Fair Trade price for products. While there currently is not a certification for crafts or apparel, businesses committed to fair trade principles focus their efforts on paying a living wage (as opposed to the legal minimum wage dominant in the industry).
- Investment in People and Communities. Fair trade cooperatives and artisan groups work toward setting aside a portion of their income, called the social premium, to invest in community development projects, democratically chosen by the workers, such as health care, education, housing, and training/empowerment programs. Fair trade retailers often make contributions over and above the social premiums.
- Environmental Sustainability. Fair Trade farmers and artisans respect the natural habitat and are encouraged to engage in sustainable production methods. Farmers implement integrated crop management and avoid the use of toxic agrochemicals for pest management. Nearly 85% of Fair Trade Certified™ coffee is also organic.
- Economic Empowerment of Small Scale Producers. Fair Trade supports small scale producers, those at the bottom of the economic ladder or from marginalized communities, that otherwise do not have access to economic mobility. Fair Trade encourages and supports the cooperative system where each producer owns a portion of the business, has equal say in decisions, and enjoys equal returns from the market.
- Direct Trade. Fair Trade importers purchase from Fair Trade cooperatives as directly as possible, eliminating unnecessary middlemen and empowering farmers to develop the business capacity necessary to compete in the global marketplace. The certification also secures long-term, stable relationships between producers and importers.
- Fair Labor Conditions. Workers are guaranteed freedom of association and safe working conditions. Fair Trade also encourages women's participation in and leadership of cooperatives. Human rights and child labor laws are strictly enforced.
While fair trade has traditionally been connected to craft and commodity production, we are excited that TransFair USA is working to pilot a program that certifies fair trade in more traditional factory production settings. Fair Indigo is hoping to pilot a program under their certification within the next year.
To learn more about Fair Trade, Wikipedia has an entry and several links to fair trade organizations.
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