Fair Trade Intro

What is Fair Trade?

Under globalization, international trading system has becoming increasingly complex. Countries are involuntarily involved in the competition by offering the most favorable price. The benefits of the buyers are maximized but often the rights and interests of the marginalized producers are exploited. It is fair to say that the international trading rule favors the rich nations, while the poor ones can hardly make a difference.

Fair trade offers an alternative trading system where fairness between buyers and seller is governed under a host of regulations, agreements, institution and principles. By addressing equitability in standard of international labor, environmental protection and social policy in relation to production and trading of goods, fair trade aims at empowering the marginalized producers and workers to be economically-self reliant, and ensuring society is just and environment is sustainable.

What are the core Fair Trade principles?

According to the Charter of Fair Trade Principles set by the World Fair Trade Organization, the fair trade principles are integral to its developmental objectives. These includes:

Market access for marginalized producers
Sustainable and equitable trading relationships
Capacity building & empowerment
Consumer awareness raising & advocacy
Fair Trade as a “social contract”

How does Fair Trade help the producers?

By addressing a more equitable trading partnership, the rights and interest of the producers is secured in the following ways:

Get paid with fair price based on cost of production, social costs and environmental cost;
ensure transparent and accountable trading partnership;
Empowered with management and marketing skills ;
Being provided with market access to ensure opportunity;
Being given equal rights to participate for women;
Work in safe and healthy working environment;
Being protected by the UN Convention Rights of the Child and international labor laws.