Fair Trade prohibits forced labor, child labor, and discrimination , and protects freedom of association and collective bargaining rights. If child labor should surface, remediation guidelines are in place. Certified farmers are guaranteed a Fair Trade floor price for their cocoa beans as well as a social premium.
What does fair trade include?
“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 – especially in the South.”
Does fair trade include child labor?
Fairtrade Standards prohibit child labor , but no person or product certification system can provide a 100% guarantee that a product is free of child labor.
What does fair trade do for children?
Fairtrade works in products and regions where child labor is prevalent because that is where our work is needed most. We fight the root causes of child labor and prevent the abuse and exploitation of children.
What does fair trade regulate?
In short, fair trade is a trading system meant to ensure that producers and workers have safe, secure working conditions (i.e. no sweatshops) and that they are paid living wages. ... Fair trade is not regulated by the government , however, a number of private organizations have developed fair trade monitoring systems.
Why is fair trade bad?
One major concern surrounding Fair Trade organizations, is that they often engage with companies that behave unethically . Fair Trade cannot guarantee that producer organizations will be able to sell all their Fair Trade Certified products under agreed conditions, which includes minimum pricing and premiums.
Is Fair Trade really fair?
Most certifications claim falsely that they are taking farmers out of poverty. ... They are not. The economic impact of Fairtrade International, the largest certification organization, works out at less than US$0.04 per person per day (calculated using the latest.
Who benefits from fair trade?
Income sustainability: Fair trade helps producers set minimum prices , which help protect fair trade farmers and workers against erratic market prices. If the market price for a commodity drops, the minimum price ensures the farmers and workers still earn enough to cover the basic costs of living.
How old is fair trade?
The earliest traces of Fair Trade in Europe date from the late 1950s when Oxfam UK started to sell crafts made by Chinese refugees in Oxfam shops. In 1964, it created the first Fair Trade Organisation.
Why is fair trade a good thing?
When you treat farmers and workers fairly, everyone benefits. Fair trade helps businesses source products that are ethically and sustainably produced while giving consumers confidence that the people behind the products they buy get a fair deal for their hard work.
What are the disadvantages of fair trade?
- There are natural limits to the success that can be achieved. ...
- There are very high fees associated with this model. ...
- There is a limited customer base around the world. ...
- The amount of product choice is greatly reduced. ...
- Administration costs don’t go to the suppliers.
What are the 10 principles of fair trade?
- Create Opportunities for Economically Disadvantaged Producers. ...
- Transparency and Accountability. ...
- Fair Trading Practices. ...
- Payment of a Fair Price. ...
- Ensuring no Child Labour and Forced Labour. ...
- Commitment to Non-Discrimination, Gender Equality, Freedom of Association. ...
- Ensuring Good Working Conditions.
What happens when trade is fair?
The basic concept of “fair trade” is to guarantee a minimum price for commodities, such as tea, coffee, and sugar , so workers in developing countries are paid more than they would otherwise earn.
Why is Fairtrade so expensive?
Why do some Fairtrade products cost more? Every time you buy a certified Fairtrade product, the producer organization or plantation receives the Fairtrade Minimum Price (where it exists) or higher based on market conditions and an additional Fairtrade Premium to invest in social, environmental and business development.
Does Fairtrade help the poor?
For cooperative workers, Fairtrade standards seem to be a tool that is effective in increasing wages above the national minimum wage, improving job security and reducing poverty . ... Fairtrade is currently perceived as a suitable development tool to benefit smallholder farmers and rural communities more broadly.
Which companies use fair trade?
- Ben & Jerry’s Ice Cream. ...
- Rishi Tea. ...
- Fair Indigo. ...
- Fairhills Wine. ...
- Green Mountain Coffee Roasters. ...
- Theo Chocolate. ...
- Blends for Life.
