Fair Trade, or alternative trade, refers to the exchange of goods based on principles of economics and social justice. The objectives of Fair Trade are to empower low-income artisans and farmers around the globe to better their conditions and to promote understanding between them and the people of developed regions.
Fair Trade Crafts is member of the Fair Trade Federation
FAIR TRADE FEDERATION (FTF) PRINCIPLES AND PRACTICES
FTF members are committed to the following principles and practices in their trading relationships.
FAIR WAGES
Producers are paid fairly for their products, which means that workers are paid at least that country's minimum wage. Since the minimum wage is often not enough for basic survival, whenever feasible, workers are paid a living wage, which enables them to cover basic needs, including food, shelter, education, and health care for their families. Paying fair wages does not necessarily mean that products cost the consumer more. Since Fair Trade Organizations bypass exploitative middlemen and work directly with the producers, they are able to cut costs and return a greater percentage of the retail price to the producers.
COOPERATIVE WORKPLACES
Cooperatives and producer associations provide a healthy alternative to large-scale manufacturing and sweatshops conditions, where unprotected workers earn below minimum wage and most of the profits flow to foreign investors and local elites who have little interest in ensuring the long term health of the communities in which they work. Fair Trade Organizations work primarily with small businesses, worker owned and democratically run cooperatives and associations which bring significant benefits to workers and their communities. By banding together, workers are able to access credit, reduce raw material costs, and establish higher and more just prices for their products. Workers earn a greater return on their labor and profits are distributed more equitably and often reinvested in community projects such as health clinics, child care, education and organizing skills, enabling self-reliant, grassroots-driven development. Safe and healthy working conditions are maintained and producers gain greater control and decision making power over the use of their local resources.
CONSUMER EDUCATION
Fair Trade Organizations educate consumers about the importance of purchasing fairly traded products which support living wages and healthy working conditions. By defining fair trade and conducting business in a manner that respects workers' rights and the environment, the fair trade movement strives to educate consumers about the often hidden human costs of their "bargains." By providing information about producer's history, culture and living conditions, Fair Trade Organizations enhance cross-cultural understanding and respect between consumers and communities in the developing world. They also educate consumers and policy makers about inequities in the global trading system.
ENVIRONMENTAL SUSTAINABILITY
Fair Trade Organizations encourage producers to engage in environmentally friendly practices which manage and use local resources sustainably. Many FTF members work directly with producers in regions of high biodiversity to develop products based on sustainable use of their natural resources, giving communities an incentive to preserve their natural environments for future generations.
FINANCIAL AND TECHNICAL SUPPORT
Small-scale farmers and artisans in the developing world lack access to affordable financing, impeding their profitability. FTF members that buy products directly from producers often provide financial assistance either through direct loans, prepayment or by linking producers with sources of financing. Unlike many commercial importers who often wait 60-90 days before paying producers, Many FTOs ensure prepayment so that producers have sufficient funds to cover raw materials and basic needs during production time. They also often provide other critical technical assistance and support such as market information, product feedback and training in financial management. Unlike commercial importers, FTOs establish long term relationships with their producers and help them adapt production for changing trends.
RESPECT FOR CULTURAL IDENTITY
Fair Trade Organizations encourage the production and development of products based on producers' cultural traditions adapted for Western markets. They seek to promote producers' artistic talents in a way that preserves cultural identity.
PUBLIC ACCOUNTABILITY
FTF members' finances, management policies, and business practices are open to the public and monitoring by the Fair Trade Federation.