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Fair Trade
is an alternative trade
movement whose main goal
is to empower
economically
disadvantaged artisans
from developing nations.
Fair Trade is a
link between artisans
and buyers from
wealthier countries,
which aims to establish
mutually fair and
long-lasting trade
relations by following
certain ethical
criteria:
-
Opportunities for
Economically
Disadvantaged
Artisans
Fair Trade
is a strategy for
poverty alleviation and
sustainable development.
Its purpose is to create
opportunities for
artisans who have been
economically
disadvantaged or
marginalized by the
existing conventional
trading system.
Fair Trade
means a safe and healthy
working environment for
artisans, and respect
for both the U.N.
Convention of the Rights
of the Child and the
local laws and social
norms. The participation
of children in the
workplace must not
adversely affect their
well-being, security,
educational requirements
and recreational needs.
Fair Trade
ensures that women’s
work is properly valued
and rewarded. Women must
always receive
sufficient wages for
their contribution to
the production process,
and they also ought to
have access to
empowering positions
within their
organization.
Fair Trade
organizations will pay
fair prices for the
goods they carry. A fair
price in the regional or
local context is one
that has been
agreed on through
dialogue with and
participation of the
artisans. A fair price
is a result of
transparent management
and commercial
relations. Fair traders
guarantee prompt
payments to their
partners and, whenever
possible and applicable,
they help artisans
access pre-harvest or
pre-production
financing.
-
Environmental
Responsibility
Fair Trade
actively encourages
conscientious
environmental practices
and the application of
responsible methods of
production.
Fair Trade
develops artisans’
financial independence
by fostering stable
relationships that
provide continuous
training opportunities
targeting every aspect
of business development,
like marketing,
management skills and
market outsourcing.
Since its inception
almost half a century
ago in the Netherlands,
Fair Trade has
expanded to include more
than 200 members from 55
countries in all five
continents, according to
the International Fair
Trade Association (IFAT).
Fair Trade
ensures that at the very
least 25 to 30 percent
of the net profits go
back to the artisans
themselves, after
peripheral costs such as
shipping for exports
have been factored in.
In spite of the growing
popularity of this
alternative trade
movement, Fair Trade
goods only account for
about .01 percent of
$3.6 trillion of all
globally exchanged
products. |