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What is Fair Trade?

What is Fair Trade?

According to WFTO (World Fair Trade Organization), Fair Trade is a trading partnership, based on dialogue, transparency and respect that seek 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 especially in developing countries.

Fair Trade organizations 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. They can be recognized by the WFTO logo.

Fair Trade is more than just trading: it proves that greater justice in world trade is possible. It highlights the need for change in the rules and practice of conventional trade and shows how a successful business can also put people first.

10 Fair Trade Principles

WFTO prescribes 10 Principles that Fair Trade Organizations must follow in their day-to-day work and carries out monitoring to ensure these principles are upheld:
Fair trade principles bt WFTO
  1. Support producers to have access to basic social services (health, education, savings)
  2. Companies with employees share annual reports and audit reports to the stakeholders.
  3. Conduct business and trade for the social, economic and environmental well-being of producers.
  4. Price each product so that an acceptable margin of profit can be made by the manufacturer and reseller, and a fair wage can be made by the workers.
  5. Do not allow child labor or forced labor.
  6. Provide opportunities for all the workers regardless of their sex or social origin.
  7. Ensure that work is carried out under humane working conditions.
  8. Develop the skills of producers and create better opportunities for trading their products.
  9. Support and advocate campaigns for fair trade development, and educate consumers, policy makers and general public about fair trade.
  10. Encourage environmentally-friendly processes and sustainable management of natural resources, as well as the use of local skills and materials.