Fair Trade

• Fair Trade is a trading partnership, based on dialogue, transparency and respect,

that seeks greater equity in international trade. It contributes to sustainable
development by offering better trading conditions to, and securing the rights of,
marginalized producers and workers
• Fair Trade Organisations have a clear commitment to Fair Trade as the principal
core of their mission. They, backed by consumers, are engaged actively in
supporting producers, awareness raising and in campaigning for changes in the
rules and practice of conventional international trade."
• Globally recognised definition, as agreed by the main international Fair Trade
networks (WFTO, Fairtrade International and European Fair Trade Association)
• Fair Trade is more than just trading:
It is a vision of business and trade that put people and planet before profit
It fights poverty, climate change, gender inequality and injustice
Is a proof of concept that showcases the enterprise models of the new economy
 Fair Trade...Principles
1.OPPORTUNITIES FOR DISADVANTAGED PRODUCERS

• Poverty reduction through trade forms a key

part of the organisation's aims
• The organisation supports marginalised small
producers, whether these are independent
family businesses, or grouped in associations or
co-operatives
• It seeks to enable them to move from income
insecurity and poverty to economic self-
sufficiency and ownership
2.Transparency and Accountability
• The organisation is transparent in its management and
commercial relations
• It is accountable to all its stakeholders and respects the
sensitivity and confidentiality of commercial information
supplied.
• The organisation finds appropriate, participatory ways to
involve employees, members and producers in its decision-
making processes
• It ensures that relevant information is provided to all its
trading partners. The communication channels are good
and open at all levels of the supply chain.
 3.Fair Trading Practices
• The organisation trades with concern for the social, economic and environmental well-being of
marginalised small producers and does not maximise profit at their expense. 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 and specifications.
• Fair Trade buyers, recognising the financial disadvantages faced by Producers and Suppliers of FT
products, ensure orders are paid on receipt of documents or as mutually agreed. Interest rates that the
suppliers pay must not be higher than the buyers’ cost of borrowing from third parties
• Where southern Fair Trade suppliers receive a pre-payment from buyers, they ensure that this payment
is passed on to the producers or farmers who make or grow their Fair Trade products.
• Buyers consult with suppliers before cancelling or rejecting orders. Where orders are cancelled through
no fault of producers or suppliers, adequate compensation is guaranteed for work already done
• The organisation maintains long term relationships based on solidarity, trust and mutual respect that
contribute to the promotion and growth of Fair Trade
• The organisation works cooperatively with the other Fair Trade Organisations in country and avoids
unfair competition. It avoids duplicating the designs of patterns of other organisations without
permission.
• Fair Trade recognises, promotes and protects the cultural identity and traditional skills of small
producers as reflected in their craft designs, food products and other related services.
 4. Fair Payment
• A fair payment is one that has been mutually negotiated and agreed by all through on-going
dialogue and participation, which provides fair pay to the producers and can also be
sustained by the market, taking into account the principle of equal pay for equal work by
women and men. The aim is always the payment of a Local Living Wage. Fair Payment is
made up of Fair Prices, Fair Wages and Local Living Wages.
Fair Prices
• A Fair Price is freely negotiated through dialogue between the buyer and the seller and is
based on transparent price setting. It includes a fair wage and a fair profit. Fair prices
represent an equitable share of the final price to each player in the supply chain.
Fair Wages
• A Fair Wage is an equitable, freely negotiated and mutually agreed wage, and presumes the
payment of at least a Local Living Wage.
Local Living Wage
• A Local Living Wage is remuneration received for a standard working week (no more than 48
hours) by a Worker in a particular place, sufficient to afford a decent standard of living for the
Worker and her or his family. Elements of a decent standard of living include food, water,
housing, education, health care, transport, clothing, and other essential needs, including
provision for unexpected events.
 5. Ensuring no Child Labour and Forced
Labour
 
• The organisation adheres to the UN Convention on the Rights of the Child,
and national / local law on the employment of children. The organisation
ensures that there is no forced labour in its workforce and / or members or
homeworkers.
• Organisations who buy Fair Trade products from producer groups either
directly or through intermediaries ensure that no forced labour is used in
production and the producer complies with the UN Convention on the
Rights of the Child, and national / local law on the employment of children
• Any involvement of children in the production of Fair Trade products
(including learning a traditional art or craft) is always disclosed and
monitored and does not adversely affect the children's well-being, security,
educational requirements and need for play.
 6.Commitment to Non Discrimination, Gender Equity
and Women’s Economic Empowerment, and Freedom
of Association
• The organisation does not discriminate in hiring, remuneration, access to training, promotion,
termination or retirement based on race, caste, national origin, religion, disability, gender,
sexual orientation, union membership, political affiliation, HIV/AIDS status or age.
• The organisation has a clear policy and plan to promote gender equality that ensures that
women as well as men have the ability to gain access to the resources
• That they need to be productive and also the ability to influence the wider policy, regulatory,
and institutional environment that shapes their livelihoods and lives
• Where women are employed within the organisation, even where it is an informal
employment situation, they receive equal pay for equal work
•  The organisation recognises women’s full employment rights and is committed to ensuring
that women receive their full statutory employment benefits.
• The organisation takes into account the special health and safety needs of pregnant women
and breast-feeding mothers.
• The organisation respects the right of all employees to form and join trade unions of their
choice and to bargain collectively. Where the right to join trade unions and bargain
collectively are restricted by law and/or political environment, the organisation will enable
means of independent and free association and bargaining for employees
 7. Ensuring Good Working Conditions
• 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 ILO conventions on
health and safety.
• Working hours and conditions for employees and / or members
(and any homeworkers) comply with conditions established by
national and local laws and ILO conventions.
• Fair Trade Organisations are aware of the health and safety
conditions in the producer groups they buy from. They seek, on
an ongoing basis, to raise awareness of health and safety issues
and improve health and safety practices in producer groups.
 8. Providing Capacity Building
• The organisation seeks to increase positive developmental impacts
for small, marginalised producers through Fair Trade.
• The organisation develops the skills and capabilities of its own
employees or members
• Organisations working directly with small producers develop specific
activities to help these producers improve their management skills,
production capabilities and access to markets - local / regional /
international / Fair Trade and mainstream as appropriate
• Organisations which buy Fair Trade products through Fair Trade
intermediaries in the South assist these organisations to develop
their capacity to support the marginalised producer groups that they
work with.
 9. Promoting 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
• The organisation provides its customers with information
about itself, the products it markets, and the producer
organisations or members that make or harvest the
products
• Honest advertising and marketing techniques are always
used.
 10. Respect for 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
• They seek to minimise the impact of their waste stream on the environment
• Fair Trade agricultural commodity producers minimise their environmental impacts,
by using organic or low pesticide use production methods wherever possible.
• Buyers and importers of Fair Trade products give priority to buying products made
from raw materials that originate from sustainably managed sources, and have the
least overall impact on the environment.
• All organisations use recycled or easily biodegradable materials for packing to the
extent possible, and goods are dispatched by sea wherever possible
 Some products
• Cotton... The cotton industry is worth over US$50 billion a year, but
five countries – China, India, the US, Pakistan and Brazil – produce the
majority of the roughly 26 million tonnes of cotton harvested in each year.
Along with Turkey and the European Union, heavy subsidies by these
major players keep the global cost of cotton artificially low. This puts
pressure on small-scale farmers in countries where governments lack the
resources for similar subsidies
•  Many Fairtrade cotton organizations are in West Africa – namely Mali,
Senegal, Cameroon and Burkina Faso. But it's India that grows the most
Fairtrade certified cotton
 Rice
• Global rice prices are highly volatile and often do
not enable farmers to meet even their basic needs.
Small-scale farmers frequently go into debt during
the yearly production cycle, and their products face
competition from the highly subsidized rice grown
on an industrial scale in developed countries.
Fairtrade works with farmers in developing
countries whose average plots are a few football
fields in size, enabling them to gain a foothold in
the global market.
 GOLD AND PRECIOUS METALS
• The artisanal and small-scale mining (ASM) groups that Fairtrade works with are
quite distinct from the multinational companies that are typically granted
government mining concessions. ASMs lack formal extraction rights in the areas
where they work. This in turn leaves ASMs vulnerable to exploitative practices by
commercial partners, or worse – as a conflict mineral, gold also attracts organized
crime and armed groups that can further threaten and extort miners.
• Fairtrade certification bans all forms of conflict minerals from the gold supply
chain, so that the gold trade does not fuel instability and conflict in mining areas.
• Fairtrade supports ASM cooperatives to acquire legal status for their operations
and enables miners to act collectively against any form of discrimination.
• Occupational safety is another concern: small-scale mining tends to involve work in
dark, narrow tunnels with poor ventilation. The use of dynamite to crack gold-
containing rocks, as well as toxic chemicals like mercury and cyanide to refine gold,
further exacerbate the dangerous working conditions. Fairtrade works with ASMs
to reduce the amount of chemicals needed in gold extraction, to raise awareness
for health and safety risks, and to ensure that proper safety equipment and
policies are in place.
 Contd
• Fairtrade in Bananas(Dominica...largest producer and exporter of organic
bananas... New Fairtrade scheme will help undocumented migrants
obtain legal status and access same rights as Dominican counterparts)
• Coffee(Kenya)
• Cocoa(Cote d Ivory) largest exporter
• ECUADOR’S FLOWER FARMS
• WINE.. South Africa is the largest producer of Fairtrade wine globally,
with 24 producer organisations, and accounts for around two- thirds of
Fairtrade wine sales. Chile also produces a high proportion of Fairtrade
wine. Both of these countries have been witness to unique economic,
social and political challenges. There are 38 Fairtrade wine producer
organisations worldwide, across South Africa, Chile and Argentina,
representing more than 5,440 farmers and workers
 Tea
Fairtrade plantations in Assam sell a small percentage of their tea on
Fairtrade terms. There are more than 800 tea estates in Assam with 10
being Fairtrade certified – at some estates as little as 2-5% of tea
grown is sold on Fairtrade terms. This means that the financial
benefits that Fairtrade purchases bring (through Fairtrade Minimum
Price and Fairtrade Premiums) are not having the impact on the
ground 

Organic Assam TGFOP Black Tea

• This Fair Trade Certified organic loose leaf tea is a classic organic black
tea produced in India's state of Assam in northeastern India. It is
composed of finely twisted leaves with occasional golden, downy tips.