10 FAIR TRADE PRINICPLES

The Ten Fair Trade Principles


  1. Provide opportunities for disadvantaged producers: Fair Trade works with marginalised, small producers. These include independent family businesses, worker associations, and co-operatives. Fair Trade enables these producers, who would otherwise face poverty, income insecurity, and the exploitation of their labour, to move towards economic self-sufficiency and ownership.
  2. Transparency and accountability: Communication channels are open and effective throughout the entire supply chain. Fair Trade enables producers, alongside other employees and members of Fair Trade organisations to participate in decision-making processes. Everybody in the supply chain is accountable for making sure the Fair Trade principles are practiced.
  3. Fair Trade practices: Fair Trade means trading with a focus on the social, economic, and environmental well-being of marginalised small producers. It does not maximise profits at the producers' expense. Commitments to producers are met in a timely and professional manner. Long term relationships with producers are established based on solidarity, mutual respect, and trust. The traditional skills and cultural identity of the producers are recognised and promoted.
  4. Fair Payment: A fair payment is one that is mutually negotiated and agreed upon through on-going dialogue with all participants in the supply chain. Fair pay is made up of fair prices, fair wages and local living wages. A local living wage is one that affords a decent standard of living to workers and their families and requires no more than 48 hours of work per week. A decent standard of living is defined as one that, at a minimum, covers the costs of food, housing, education, health care, transport, clothing, and other essential items.
  5. No child labour; no forced labour: Fair Trade ensures that there is no forced labour and no child labour in the supply chain. Any involvement of children in the production of Fair Trade products (such as learning a traditional craft or skill) is always disclosed and monitored and must not adversely affect the child’s well-being, security, education, and need for play. 
  6. No discrimination; gender equity; freedom from discrimination: Fair Trade promotes gender equality and ensures that both men and women have access to the resources necessary to be productive and likewise to shape wider policy. The rights of all employees to form and join trade unions and bargain collectively are respected. The special health and safety needs of pregnant women and breastfeeding mothers are taken into account. 
  7. Good working conditions: Fair Trade Organisations are aware of the health and safety conditions of the producer groups they buy from. They seek, on an ongoing basis, to raise awareness and improve health and safety practices in producer groups. Working hours must comply with national and local laws and ILO conventions.
  8. Capacity building: Fair Trade helps marginalised producers develop their capabilities so that they can move towards economic independence and long term viability in the global market. Capacity building might involve elements such providing access to training tools, loans for equipment, pre-harvest investment, technical assistance, or market research.
  9. Promote Fair Trade: Fair Trade works to raise awareness for the need for greater justice in world trade through Fair Trade. Fair Trade organisations provide customers with information about Fair Trade, Fair Trade products, and the producer organisations that create or farm these products. Honest advertising and marketing techniques are always used.
  10. Respect for the environment: Fair Trade products are made in a way that maximises the use of sustainable materials. Farmers use organic and low-pesticide methods of production wherever possible. Fair Trade strives to reduce energy consumption and minimise the impact of waste streams on the environment. Products are packed using recycled or biodegradable materials whenever that is possible and likewise preferably shipped by sea to reduce greenhouse gas emissions.


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