About Fair Trade

So what is Fair Trade?

So what is fair trade anyway? Why is it important?

What is behind the formation of an organisation like the Fair Trade Association of Australia and New Zealand? You can read here about what fair trade is and why it is important.

The Fair Trade Association of Australia and New Zealand works with and supports the FINE definition of fair trade:

Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers - especially in the South. Fair Trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade."

Why fair trade ?

International trade has been a historical link between peoples of the world. It can be used to increase corporate profits without benefit to the wider community and to promote intercultural understanding, grassroots development and economic justice.

The advantages of current international trade practices are not visible to all people in the world. For small farmers, access to market or price information is difficult and as a result, many become increasingly dependent on middlemen and receive smaller and smaller returns for their work. In bad times, many lose their only property - their land - and thus, their livelihoods.

Similarly many plantation workers endure low pay, unsafe working environments and poor living conditions. Too often they lack the opportunity to participate in decisions that affect their lives on the plantation. The way that many products are produced, traded and consumed is simply unjust; this is a major cause of continuing world poverty.

Fair Trade is an alternative approach to conventional trade. It is a trading partnership based on dialogue, transparency and respect that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing rights of, marginalised producers and workers - especially in low-income regions.

Fair Trade is about giving disadvantaged people power: by paying producers and workers fair prices for their work, by helping them gain the skills and knowledge they need to develop their businesses and to operate in the global economy, and by challenging unfair trading practices. It is about providing fair go, not charity. Together we can create more awareness of international consumer power and offer Australians and New Zealanders an opportunity to make real change through supporting fair trade activities and buying fairly traded products.

What is the FAIRTRADE Label?

The Fairtrade Certification Label is an independent consumer certification label which appears on products as an independent guarantee that disadvantaged producers in the developing world are getting a better deal. As a result of Fairtrade, these producers receive a Fairtrade Minimum Price that covers the cost of sustainable production as well as an extra Fairtrade Premium that is invested in social or economic development projects.

What does the FAIRTRADE Label and system guarantee?

A better deal for producers in developing countries and also a guarantee to consumers that the full benefits of Fairtrade are being received by producers ie:

• A fair and stable price for their produce
• Security of long term contracts
• Investment in local community development
• Improved working conditions
• Environmentally sustainable farming methods
• Support in gaining the knowledge and skills needed to operate successfully in the global economy