Principles of Fair Trade

World Fair Trade organsation logoAt Trade Aid, the ten principles of fair trade form the basis of all our work.

Trade Aid is one of only two New Zealand members of the World Fair Trade Organisation (WFTO). We are an active member in this organisation to ensure that the standards of fair trade remain high.
 
The WFTO have created ten key principles that Fair Trade Organisations work to and through monitoring ensure these standards are being met. Read more about the WFTO at: http://www.wfto.com


The Key Principles of Fair Trade

 
The WFTO has created ten principles that Fair Trade Organisations must follow in their day-to-day work, and carries out monitoring to ensure these principles are maintained:
  1. Creating Opportunities for Economically Disadvantaged Producers
    Fair Trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.
  2. Transparency and Accountability
    Fair Trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.
    View Trade Aid's last set of social accounts.
  3. Trade Relations
    Fair Trade organisations trade with concern for the social, economic and environmental well-being of marginalized small producers and do not maximize profit at their expense. They maintain long-term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. An interest-free pre-payment of at least 50% is made if requested.
  4. Payment of a Fair Price
    A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers, and takes into account the principle of equal pay for equal work by women and men. Fair Traders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.
  5. Child Labour
    Fair Trade organisations respect the UN Convention on the Rights of the Child, as well as local laws and social norms in order to ensure that the participation of children in production processes of fairly traded articles (if any) does not adversely affect their well-being, security, educational requirements and need for play. Organisations working directly with informally organised producers disclose the involvement of children in production.
  6. Non-Discrimination, Gender Equity 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. Fair Trade means that women's work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organisations.
  7. Working Conditions
    Fair Trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.
  8. Capacity Building
    Fair Trade is a means to develop producers' independence. Fair Trade relationships provide continuity, during which producers and their marketing organisations can improve their management skills and their access to new markets.
    Read more about Trade Aid's capacity building projects.
  9. Promoting Fair Trade
    Fair Trade organisations raise awareness of Fair Trade and the possibility of greater justice in world trade. They provide their customers with information about the organisation, the products, and in what conditions they are made. They use honest advertising and marketing techniques, and aim for the highest standards in product quality and packing.
  10. The Environment
    Fair Trade actively encourages better environmental practices and the application of responsible methods of production. Read more about Trade Aid's own environmental practices .

Find out more about the Word Fair Trade Organisation at: www.wfto.com