How does fair trade work




















Visit the 'Get involved' page to learn more about Fairtrade in your area. How Fairtrade works Fairtrade is a simple way to make a difference to the lives of the people who grow and create the things we love. Prices that aim to cover the average costs of producing their crop sustainably — a vital safety net when market prices drop The Fairtrade Premium — an extra sum of money paid on top of the selling price to invest in business or community projects of their choice Decent working conditions and a ban on discrimination, forced labour and child labour Access to advance credit ahead of harvest time Being able to plan more for the future with more security and stronger relationships with buyers.

Three regional producer networks that represent farmers and workers in Africa and the Middle East, Asia and the Pacific, and Latin America and the Caribbean Over 25 national Fairtrade organizations and marketing organizations that market and promote Fairtrade products in consumer countries Fairtrade International , the umbrella NGO that creates the internationally agreed Fairtrade Standards and coordinates Fairtrade worldwide FLOCERT , the main independent certifier for Fairtrade, which inspects producers and traders to ensure they comply with Fairtrade Standards.

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We specifically work with producers outside of the US who grow products like bananas, coffee and cocoa. Fairtrade puts more money into the hands of farmers and workers through a unique pricing model, sets and monitors rigorous standards at every step of the supply chain, supports producers through local and regional expert networks, and creates demand for ethical goods in countries like the US.

Farming is the single largest employer in the world—two out of every five people farm. This is not enough. Poverty is the root of many social and economic injustices that people in agricultural and rural communities face. This problem is not new. The injustices that farmers face exist because of historical inequalities and injustices, many of which were solidified during the Colonial era and continue to the present day. The system basically uses trade as a tool, making trade fair to achieve a bigger dream, a bigger goal, and it's all about communities, about better living conditions, giving back to the farmers and putting them on the world map.

Make fair trade part of your everyday life. For example, if West Elm uses one certification, but other retailers are using another, whose certification should you trust? Industry alignment is key in that sense and hopefully helps consumers feel more confident in the value of our certifications. And while Fair Trade USA is ensuring that factory, farm and fishery workers are treated ethically, Nest is setting standards for the millions of artisans across the globe who work out of their homes.

The in-home piece impacts women in particular. The home-based nature of craftwork makes it an important sector for women, but historically, homework has been very underinvested in. Artisans in Nepal crafting felt ornaments for West Elm.

West Elm and Nest recently partnered to pilot a new set of industry-wide standards for homeworkers. Aside from certifications, there are a few ways to gauge whether or not a company is committed to ethically treating workers throughout their supply chain.

Fair Trade is complicated. And as with any system, there are those who find ways to take advantage, so in some instances the benefits may not trickle down to the workers as intended.

A report out of the University of London famously shared an example of one Fair Trade tea co-operative where the modern toilets funded with the premium were exclusively for the use of senior co-op managers.

While there may be more examples of this type of abuse, it is by no means conclusive that the practice of Fair Trade overall does not work.



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