Fair trade is a just alternative to the business-as-usual of conventional trade.
Under conventional trade (sometimes called “free” trade), workers’ wages are squeezed—and their safety sometimes compromised—in order to make bigger profits for the owners and stockholders. That’s why sweatshops and child labor exist.
Fair trade upholds people’s dignity. Many fair trade businesses are cooperatives: workers own equal shares in the company or farm. These worker/owners set the conditions and value of their work. Essentially, they tell us (we who distribute and sell their products) how much their goods are worth. Paying them a fair price does not necessarily mean higher prices for the consumer. For instance, a pound of shade grown, arabica bean, gourmet coffee that is fair trade is no more expensive than shade grown, arabica bean, gourmet coffee that is sold on through the conventional market.
In the agricultural commodities markets, the cooperatives are always better off with the fair trade system. While prices fluctuate up and down in conventional markets, fair trade offers stability—and a price always above the New York Stock Exchange! Fair trade buyers (those who are 100% fair trade) partner with farmer cooperatives for the long haul; they don’t cut and run when they can find a similar quality coffee bean elsewhere. To help the farmer cooperative succeed, they offer technical assistance to build their capacity and credit on favorable terms. It’s common for fair trade buyers to pay 50% up front (before delivery) so that the farmers have capital to work with.
Fair trade businesses that make other products (e.g., handcrafts, jewelry, clothing, sports equipment) also uphold fair trade principles of dignity and justice. Women’s equality is respected. Opportunities are given to the disadvantaged. The cultural heritage of the workers is celebrated. Children are not exploited. Responsible stewardship of the environment is reflected in how products are sourced (reclaiming materials that would otherwise go to a landfill, or using native grasses/seeds and replanting them) and how waste is minimized, re-used, or composted.
To read more about why fair trade is so important, see www.ftrn.org.
