Fair Trade
August 20th, 2006 by Mollie
The general idea behind the term “fair trade” is that producers and workers trading/selling their goods internationally will be fairly paid for their products. This can become very relative, therefore, standards in the form of certifications were started to keep everyone in check. There are a couple of different fair trade certifications/labels out there. If you see one of the following labels on a particular good (coffee, tea, chocolate, crafts, etc.) you are buying that lets you know that a set of fair trade standards has been met. Fairtrade Labeling Organizations International (FLO) is the “worldwide Fairtrade Standard setting and Certification organisation”.
There are two sets of generic producer standards, one for small farmers and one for workers on plantations and in factories. The first set applies to smallholders organised in cooperatives or other organisations with a democratic, participative structure. The second set applies to organised workers, whose employers pay decent wages, guarantee the right to join trade unions and provide good housing where relevant. On plantations and in factories, minimum health and safety as well as environmental standards must be complied with, and no child or forced labour may occur.
As Fairtrade is also about development, the generic standards distinguish between minimum requirements, which producers must meet to be certified Fairtrade, and progress requirements that encourage producer organisations to continuously improve working conditions and product quality, to increase the environmental sustainability of their activities and to invest in the development of the organisations and their producers/workers.
Trading standards stipulate that traders have to:
• pay a price to producers that covers the costs of sustainable production and living;
• pay a premium that producers can invest in development;
• partially pay in advance, when producers ask for it;
• sign contracts that allow for long-term planning and sustainable production practices.Finally, there are a few product-specific Fairtrade standards for each product that determine such things as minimum quality, price, and processing requirements that have to be complied with.
A few trusted fair trade labels to look out for:
Fair Trade Certified
International Fair Trade Organization
FLO