The Power of Fair Trade

Take a moment to think about that statement.

Fair trade is a powerful, growing movement which ensures that producers receive fair compensation for their products. It means that workers are paid at least that country's minimum wage and in many cases, much more to cover basic needs such as food, shelter, health care and education for themselves and their families.

Many times, the profits are reinvested in the community for education, health care projects and leadership training. Cooperatives provide healthy working conditions for the workers, thus eliminating the large manufacturing and sweatshop conditions that have become all too familiar in poorer countries.

Because many small scale farmers and artisans are unable to qualify for affordable financing, fair trade organizations working directly with the producers, often use pre-payment or direct loans, allowing producers the means to cover raw materials and basic production costs. Fair trade organizations establish long-term relationships and avoid the middleman by working directly with the producers, thus allowing a reduction of costs and a greater return to the producers themselves.

Fair trade business principles

Food and items that are genuinely fair trade must follow the following principles:

Fair wages in the local context: producers are paid fair compensation for their products.

Healthy and safe working conditions: workers enjoy safe working conditions and forced child labor is prohibited.

Direct trade: fair trade organizations work directly with cooperatives, democratically-run associations and small businesses to eliminate the middleman and allow producers to compete in the global marketplace.

Environmental sustainability: fair trade organizations work with producers to develop products based on use of their natural resources, offering communities a reason to preserve their natural environments.

Financial and technical support: fair trade organizations provide prepayment or direct loans to cover raw materials and basic needs during production time. They also offer product feedback and training whenever possible.

Public accountability: fair trade organizations' business practices are open to the public and monitoring by the Fair Trade Federation.

Consumer education: By educating consumers about the importance of buying fairly traded products, fair trade organizations enhance mutual cultural respect between the consumers and the communities in developing countries.We must remember that there are faces behind the products we use and consume on a daily basis. We can all choose to spend our consumer dollars on fairly traded goods, thus providing fair wages and safe employment practices to those on the other side of the globe.

It is our social responsibility shop for items that are fairly traded and are produced with sustainable use of natural resources; to ensure the preservation of environments for generations to come. We can all do our part to make a difference in the lives of people around the world and help them to remain true to their cultural diversity.

References:
Fair Trade Federation (2007). About Fair Trade. Retrieved March 28, 2008 from the fairtradefederation.org Web site: http://www.fairtradefederation.org/ht/d/sp/i/2733/pid/2733

Trans Fair USA (2008). Fair Trade Overview. Retrieved March 28, 2008 from the transfairusa.org Web site:
http://transfairusa.org/content/about/overview.php