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| Fair
Trade Principles and Practices |
| The
People's Market, CRISPAZ's line of fair trade Salvadoran handcrafts,
is registered with the Fair Trade Federation. Fair Trade Federation
members are committed to the following principles and practices
in their trading relationships: |
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Fair Wages: |
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Producers
are paid fairly for their products, which means that workers
are paid at least that country's minimum wage. Since the minimum
wage is often not enough for basic survival, whenever feasible,
workers are paid a living wage, which enables them to cover
basic needs, including food, shelter, education and health care
for their families. Paying fair wages does not necessarily mean
that products cost the consumer more. Since Fair Trade Organizations
bypass exploitative middlemen and work directly with producers,
they are able to cut costs and return a greater percentage of
the retail price to the producers. |
| Cooperative
Workplaces: |
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Cooperatives
and producer associations provide a healthy alternative to large-scale
manufacturing and sweatshops conditions, where unprotected workers
earn below minimum wage and most of the profits flow to foreign
investors and local elites who have little interest in ensuring
the long term health of the communities in which they work.
Fair Trade Organizations work primarily with small businesses,
worker owned and democratically run cooperatives and associations
which bring significant benefits to workers and their communities.
By banding together, workers are able to access credit, reduce
raw material costs and establish higher and more just prices
for their products. Workers earn a greater return on their labor,
and profits are distributed more equitably and often reinvested
in community projects such as health clinics, child care, education
and literacy training. Workers learn important leadership and
organizing skills, enabling self-reliant grassroots-driven development.
Safe and healthy working conditions are maintained and producers
gain greater control and decision making power over the use
of their local resources. |
| Consumer
Education: |
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Fair
Trade Organizations educate consumers about the importance of
purchasing fairly traded products which support living wages
and healthy working conditions. By defining fair trade and conducting
business in a manner that respects workers' rights and the environment,
the fair trade movement strives to educate consumers about the
often hidden human costs of their "bargains." By providing
information about producers' history, culture and living conditions,
Fair Trade Organizations enhance cross-cultural understanding
and respect between consumers and communities in the developing
world. They also educate consumers and policy makers about inequities
in the global trading system. |
| Environmental
Sustainability: |
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Fair
Trade Organizations encourage producers to engage in environmentally
friendly practices which manage and use local resources sustainably.
Many FTF members work directly with producers in regions of
high biodiversity to develop products based on sustainable use
of their natural resources, giving communities an incentive
to preserve their natural environments for future generations. |
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| Financial
and Technical Support: |
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Small-scale
farmers and artisans in the developing world lack access to
affordable financing, impeding their profitability. FTF members
that buy products directly from producers often provide financial
assistance either through direct loans, prepayment or by linking
producers with sources of financing. Unlike many commercial
importers who often wait 60-90 days before paying producers,
Many FTOs ensure prepayment so that producers have sufficient
funds to cover raw materials and basic needs during production
time. They also often provide other critical technical assistance
and support such as market information, product feedback and
training in financial management. Unlike commercial importers,
FTOs establish long term relationships with their producers
and help them adapt production for changing trends. |
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| Respect
for Cultural Identity: |
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Fair
Trade Organizations encourage the production and development
of products based on producers' cultural traditions adapted
for Western markets. They seek to promote producers' artistic
talents in a way that preserves cultural identity. |
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| Public
Accountability: |
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FTF
members' finances, management policies, and business practices
are open to the public and monitoring by the Fair Trade Federation. |
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