Fair trade is a term that's thrown around quite a bit when it comes to green living and lime lifestyles. It certainly sounds like a good thing, considering the word "fair" is used so frequently, but what is it exactly that makes fair trade so fair? And for that matter, if you don't look for the fair trade label, are you being unfair?
What is Fair Trade?
Fair trade is applicable to many foods and recreational products made in developing countries and sold in North America, Europe, Australia, and Asia. Though there are many different standards of fair trade, the best known, and arguably the most important has to do with wage and labor.
Fair Trade Wage and Labor Agreements:
Farmers and laborers in developing countries of Africa, Asia and Latin America are typically paid demeaning wages that would not even cover living expenses. However, fair trade agreements require that these workers are paid fairly so that they can improve their standards for living.
Additionally, both adults and children benefit from strict working condition guidelines associated with fair trade.
- Fair Wage:
For products to be Fair Trade Certified, the farmers or workers must be compensated at least the cost of sustainable production. Additionally, an added premium, established by the Fairtrade Labelling Organization (FLO), is paid to further the local community's economic growth.
Fair trade minimum prices for laborers are guaranteed reasonable because they are not established by bartering or pressure tactics. Instead, they are created by independent parties such as FLO and are reviewed periodically to maintain fairness.
- Fair Working Conditions:
Fair trade also has a lot to do with working conditions. Forced labor and infringement of child labor laws are entirely unacceptable, and working conditions must meet specific health and safety requirements.
If children do work, the work must not adversely affect their well-being, security, educational requirements and need for play.
Other Fair Trade Concerns:
Though fair wage and working conditions are large, or even the largest, parts of fair trade, they are not the only parts. Fair trade extends to many different aspects of production and trading standards that do good for both the workers and the consumers.
By committing to fair trade organizations, companies and consumers are committing to:
- Open information exchanges between producers, consumers, and companies
- Long-term trade relationships between corporations and producers
- Practices that promote environmental protection and sustainability
- Elimination of unnecessary middlemen between producers and consumers
- Equal employment opportunities in under-developed communities
Most importantly, fair trade is all about respect. Instead of being entirely concerned with turning a profit, fair trade means companies and consumers respect those who produce the goods they purchase. Fair trade also means that those producers can work to become self-reliant instead of at the mercy of large corporations.