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| Fair Trade Crafts FAQ |
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Q. What is fair trade?
Fair Trade is an alternative approach to conventional international trade. It is a partnership between producers and traders, which aims at sustainable development for excluded and disadvantaged people in developing countries. Fair trade businesses foster long-term and direct relationships with producers in the developing world, because they know these connections are a highly effective way to help producers help themselves. Fair trade is not about charity; it uses a fair system of exchange to empower producers and to create sustainable development.
On a personal level Fair Trade enables people to put food on their tables, to live and work with dignity and develop their communities. On a global level Fair Trade has the potential to alleviate poverty by changing the unfair structures of world trade and campaign for sustainability
Q. Do fair trade goods cost more than comparable non-fair trade goods?
Generally, fairly traded items dont cost more than other goods, because fair trade businesses work directly with producers - cutting out anywhere from 3 - 10 middlemen who raise the price along the way in conventional trading. The cost to consumers typically remains the same while a higher percentage of the price is returned to the artisans and farmers who made the product.
Q. How much money do the artisans make?
Although the percentage varies depending on the product and vendors involved, about 15-30% of the retail price goes to the producer. The rest of the retail price covers the basic expenses of the importer and/or the retailer, such as rent, wages, and other costs of doing business.
Q. What is the difference between Ethical Trade and Fair Trade?
Fair Trade differs from Ethical Trade, which seeks to ensure workers rights throughout the supply chain of the fashion industry as set down in the ILO convention for Labour Rights. These, if respected, should provide workers with the government minimum wage, health and safe working conditions. Fair Trade goes beyond this, working directly with producers, helping to access the market, and investing in social development and environmental projects. The Ethical Trade Initiative is a UK-lead volunteer initiative intended to make large companies look at and change their existing trading and buying practices with their suppliers.
Companies that follow Ethical Trading Standards subscribe to the following code of conduct:
- no forced labour
- freedom of association and the right to collective bargaining
- safe and hygienic working conditions
- no child labour to be used
- living wages to be paid
- no discrimination
- no excessive working hours
- no discrimination
- regular employment to be provided
- no harsh or inhumane treatment
Fair Trade goes much further than Ethical Trade. Fair Trade companies build long term partnerships with their producers with the deliberate aim of ensuring sustainable development for marginalised and disadvantaged people in developing countries such as farmers, women heads of households, indigenous people, disabled people and refugees. Fair Trade Companies invest in their producers communities.
Fair Trade involves:
- paying fair prices to producers which reflect the true cost of production (often world market prices dont cover even raw material costs let alone the cost of making goods).
- helping develop the organizational capacity of producer groups, along with technical and design assistance and marketing support.
- supporting producer organisations in their social development and environmental projects.
- promoting gender equality in pay and working conditions.
- committing to long term relationships to provide stability and investment initiatives in environmental protection.
- campaigning to highlight the unequal system of world trade which places profit above human rights and threatens our environment.
- Essentially the difference between the two is that members of the Ethical Trading Initiative are commercial organisations that have agreed to meet certain trading criteria; whereas Fair Trade exists in order to help producer communities overcome poverty using their traditional skills.
Q. Who benefits from Fair Trade?
We all do. Most importantly, Fair Trade enables producers in the poorest communities of the world to work their way out of poverty, and look forward to a more positive future for themselves, their families and their communities.
For consumers in the UK, they know that buying Fair Trade products means that they are an active part of the solution of world poverty, and are helping to send a strong message to multinational companies to re-think their trading policies in the developing world. Fair Trade is not just about paying a fair price and meeting the legal standards on working conditions - its a different way of doing business - its a partnership that we can all benefit from.
Q. What is BAFTS
The British Association for Fair Trade Shops (BAFTS) is an association of retailers who, although independent, unite in a core purpose; to bring about fundamental changes in the status of working producers through Fair Trade retailing and campaigning.
By shopping at a BAFTS retailer you are ensuring that your money is spent on Fair Trade goods. All BAFTS retailers must buy at least 70% of their stock from recognised Fair Trade sources. BAFTS recognises the following sources as Fair Trade: Fairtrade marked products, members of the International Fair Trade Association and BAFTS recognised Importers.
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