Manchester UMC

What is Fair Trade?

Fair trade is a business model designed to eradicate poverty through sustainable economic development with an appreciation of local cultures and traditions. The World Fair Trade Organization (WFTO) defines fair trade with ten standards for producers (artisans, farmers, manufactures) and marketers (retailers, wholesale distributors) alike:

1. Opportunities: Create opportunities for producers disadvantaged or marginalized by the conventional trading system.

2. Transparency and Accountability: Transparent management and commercial relations to bolster fair and responsible trade without corrupt practices.

3. Capacity Building: Develop producers’ independence through the formation of producer owned cooperatives growing entrepreneurial skills and access to the marketplace.

4. Promoting Fair Trade: Provide consumers with fair trade education and honest marketing to convey the win-win ability of fair trade to improve individual and community economics.

5. Payment of a Fair Price: A fair price in the local context agreed through dialogue and participation based on the cost of materials and the cost of living for the producer.

6. Gender Equity: All work, including women’s work, is properly valued and rewarded.

7. Working Conditions: Building safe and healthy working environments for producers.

8. Child Labor: No forced labor is used in the production of fair trade goods. Children’s well-being, security, educational requirements and need for play are key to the betterment of the world, and for that reason the UN Convention on the rights of the Child, and national / local law is observed in any involvement of children in the production of fair trade, including learning traditional arts and crafts.

9. The Environment: Encourage better environmental practices and responsible methods of production in keeping with green, sustainability practices. (It is important to note not all green products are produced in fair trade or living wage labor conditions.)

10. Trade Relations: Advance payments are made when possible to producers as orders are made, and profits are not maximized at producers’ expense.

This listing of the World Fair Trade Organization fair trade standards were abridged by P3 Strategies, Inc. For the unabridged version visit www.wfto.com.