 Fair trade is a way of doing business that builds equitable, long-term partnerships between consumers in North America and producers in developing regions of the world. This is done in many ways. Some of which are:
- Paying a fair wage in a local context
- Offering employees opportunities for advancement
- Providing equal employment opportunities for all people
- Engaging in environmentally sustainable practices
- Being open to public accountability
- Building long-term relationships
- Providing healthy and safe working conditions within the local context
- Providing financial and technical assistance whenever possible
Fair Trade is:
A living wage for farmers. During an unprecedented slump in world coffee prices, Fair Trade has become more important than ever.
A new model for business based on the "triple bottom line"—a fair deal for farmers and workers, environmental sustainability, and profitability for all parties in the chain of production.
An international movement with roots going back 50 years. There are about 17 national Fair Trade certification initiatives in Europe, North America and Japan. Together, these initiatives make up the Fair Trade Labeling Organizations International.
An opportunity to express your values with your purchase dollars. The coffee, tea and chocolate you buy represent the hard work of hundreds of thousands of people. Choosing products with the Fair Trade label is an easy way to make a positive impact on their lives.
A guarantee that clearly defined criteria were met in the production and trade of agricultural commodities.
For example, TransFair USA gives the following international Fair Trade criteria for coffee, the leading Fair Trade Certified product worldwide, are:
A Fair Price: Producer cooperatives are guaranteed a fair price (a floor price of US$1.26 per pound or 5 cents above the prevailing market price; US$1.41 for certified organic coffee or 15 cents above the market price)
Democratic Organization: Producers must belong to cooperatives or associations that are transparent and democratically controlled by their members
Direct Trade and Long Term Relationships: Importers must purchase coffee directly from Fair Trade certified producers and agree to establish long- term and stable relationships
Access to Credit: When requested by producers, importers must provide pre-harvest financing or credit (up to 60% of each order)
Environmental protection: Producers must implement integrated crop management and environmental protection plans. Through price incentives, producers are encouraged to work towards organic production
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