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What Is Fair Trade?

The Fair Trade Federation has come up with the following list of criteria for items to be classified "fair trade":

  • Providing a fair wage in the local context of the country;
  • Providing opportunities to advance the skills of artisans;
  • Provide everybody with equal opportunity for employment, especially the disadvantaged;
  • Making sure the work does not deplete or permanently damage the environment;
  • Establishing long-term trade relationships;
  • Providing healthy and safe working conditions;
  • Providing the public access to the businesses practices through Fair Trade Federation;
  • Providing financial and technical assistance whenever possible.

    Fair Trade Organizations (FTOs) travel to many third world and developing countries and work with different artisans and producers to help give them a better life. By minimizing the number of middlemen, FTOs can sell many of the same items at similar prices the commercial traders set.

    To increase possible work, some FTOs make sure that all processing and packaging activities take place in the developing countries. Because in many countries minimum wage is not enough for the producers to live off of, FTOs strive to provide the workers a living wage to help cover living and basic expenses.

    An important aspect of Fair Trade is that the workers are able to keep their cultural traditions in their crafts. Workers collaborate with FTOs to access credit and establish reasonable and effective prices for their products. Together, workers become leaders, learn how to be self-reliant, and help improve their organized community. One of the ways FTOs assist in the building of a community is by overseeing that some of the profits are used to help organize health care clinics and other vital projects.

    Of all the globally traded goods, Fair Trade only accounts for approximately .01%. Through Fair Trade, 1/3rd to 1/4th of the profits are returned to developing countries. Sales from 1985 to 1998 for Ten Thousand Villages in the United States and Canada were equivalent to providing 12,500 full time jobs for disadvantaged farmers and producers. Sixty to seventy percent of Fair Trade workers are women, who are often mothers and the only wage earners for the family.

    By choosing to purchase Fair Trade items, you are helping less fortunate individuals have a chance to live a more comfortable life.

    This information was made available by the Fair Trade Federation.

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