The 10 Principles Of Fair Trade
There are 10 principles of Fair Trade that all WFTO members should follow. The World Trade Fair Organization (WFTO) is a global network of organizations that represents Fair Trade principles. Companies could become members and enjoy some benefits conferred by any trade agreement.
Members of the organization have to sign a Guarantee System and respect the 10 principles of WFTO.
The 10 principles are as follow:
1. Creating opportunities for small producers or other marginalized groups
2. Transparent and accountable business relations with suppliers and customers. Producers and workers are given a chance to participate in decision-making processes and have a voice within their organization.
3. Responsible and trade fairly. The organization pays producers on time and according to mutual agreement. They handle quality problems fairly.
4. The organization pays a fair price to producers, as mutually agreed by both sides
5. No child labor or forced labor
6. Commitment to non-discrimination, gender equity and freedom of association
7. Ensuring safe and fair working conditions. The organization pays at least the applicable minimum wage, provides legally required benefits and manages working hours responsibly
8. Where possible, assisting developing the capacity to support the marginalized producers that they work with
9. Theorganizations expected to provide truthful information about its organization to the FT buyer
10. Respects the environment and where possible sources raw materials responsibly
Applicants have to show 100% commitment to Fair Trade and apply all of the 10 Principles of Fair Trade to the supply chain in order to become a member. WFTO members could establish close relationships and have lower trade barriers with each other. It allows them a larger market for their goods. It is interesting to know that 75% of the members come from the developing countries and they could have an immediate access to developed markets at lower tariff rates.
WFTO includes fair trade producers, marketers, exporters, importers, wholesalers and retailers in over 70 countries in Africa, Asia, Europe, Latin America and the Pacific Rim.
Source & Pictures: WFTO
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