What is Fair Trade?
Fair Trade is a global movement that works to alleviate poverty and empower communities through fair trade practices.
Fair Trade follows the World Fair Trade Organisation’s 10 Principles of Fair Trade.
Everyone involved in the Fair Trade supply chain, from producer to retailer, makes conscious choices to ensure a positive impact on their own lives, the lives of others and the environment.
The World Fair Trade Organisation provides the WFTO guarantee to businesses and their products, confirming that they are following the 10 Principles of Fair Trade.
The Fair Trade Association of Australia endorses businesses in Australia that follow the 10 Principles of Fair Trade.
Fair Trade and Fairtrade - what's the difference?
Fair Trade refers to businesses selling manufactured and artisan-made products.
Fairtrade refers to primary products such as tea and coffee produced by farming organisations that have undergone certification and labelling by Fairtrade International. Learn more from Fairtrade Australia and New Zealand.
What are the 10 Principles of Fair Trade?
1. OPPORTUNITIES FOR ECONOMICALLY MARGINALISED PRODUCERS
Poverty reduction through trade must form a key part of the organisation’s aims. The organisation or business must assist vulnerable producers to move from income insecurity and poverty to economic self-sufficiency and ownership.
2. TRANSPARENCY & ACCOUNTABILITY
The organisation must be transparent in its management and commercial relations.
The organisation finds appropriate, participatory ways to involve employees, members and producers in its decision-making processes.
3. FAIR TRADE PRACTICES
The organisation must have concern for the social, economic and environmental well-being of marginalised producers. It is responsible and professional in meeting its commitments in a timely manner. Suppliers respect contracts and deliver products on time and to the desired quality.
4. FAIR PAYMENT
A fair price is one that has been mutually agreed by all through dialogue and participation which provides fair pay to the producers and can also be sustained by the market, taking into account equal pay for men and women and a Local Living Wage.
5. NO CHILD LABOUR. NO FORCED LABOUR
The organisation must adhere to the United Nations’ Convention on the Rights of the Child, and local law on the employment of children. Any involvement of children in the production of products is disclosed and monitored and does not adversely affect the child’s well-being.
6. NO DISCRIMINATION. GENDER EQUALITY. FREEDOM OF ASSOCIATION
The organisation does not discriminate in hiring, remuneration, access to training, promotion, termination or retirement. The organisation has a clear policy and plan to promote gender equality and respects the right of all employees to form and join trade unions of their choice and to bargain collectively.
The organisation provides a safe and healthy working environment for employees and / or members. It complies, at a minimum, with national and local laws and International Labor Organisation’s conventions on health and safety. Fair Trade organisations are aware of the health and safety conditions of their producer groups.
8. CAPACITY BUILDING
The organisation seeks to increase positive developmental impacts for producers through Fair Trade.
Organisations working directly with small producers develop specific activities to help these producers improve their management skills, production capabilities. and access to markets.
9. PROMOTE FAIR TRADE
The organisation raises awareness of the aim of Fair Trade and of the need for greater justice in world trade through Fair Trade. It advocates for the objectives and activities of Fair Trade according to the scope of the organisation.
10. CLIMATE ACTION AND PROTECTION OF THE ENVIRONMENT
Organisations which produce Fair Trade products maximise the use of raw materials from sustainably managed sources in their ranges, buying locally when possible. They use production technologies that seek to reduce energy consumption and where possible use renewable energy technologies that minimise greenhouse gas emissions.
Want to read more about the 10 Fair Trade Principles?
If you want to find out more about the 10 Principles of Fair Trade you can read about them on the World Fair Trade Organisation (WFTO) site.
