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Fair trade is not communism. However, fair trade believes that certain standards should apply to prevent abuses. People do not have the right to be treated humanely- with dignity. There is more to life than maximizing profit. The Fair Trade Federation has created nine principles for members to follow.
The following is adapted from the 9 principles stated on the Fair Trade Federation website:
- The buying and selling of fair trade products provides economic opportunities for the less fortunate. It also gives a sense of dignity not provided charity. In many cases, such as fair trade ceramics and handmade jewelry, it preserves rich techniques and traditions that would otherwise be forgotten. In addition, Fair Trade places the health of the community at the forefront of the relationship. It is not simply a transaction to make money but examines how that money is used. For example, the money is invested in health care and education rather than alcohol.
- The Fair Trade create a transparent relationship. Buyers and sellers exchange information about their business. This creates a partnership rather than just ad hoc transactions. When each party sees how the other is doing and is committed to the relationship it creates a mutually beneficial relationship. Rather, than each side suspected the other is trying to get an advantage, in Fair Trade, the facts are out in the open. Each side wants the other to make a fair profit and can see whether this is happening. If it does both grow together.
- Related to this members desire that producers grow. Member will advise producers on market conditions, design, technical assistance and sometimes financial assistance. Again, this create a partnership that is stronger than any written contract between two faceless corporations. It also helps Fair Trade members create unique products that the consumer desires.
- Fair Trade also seeks to have a dialog between sellers and buyers. Producers are given a voice in the process and how it should be structured. This can be a complicated messy process but is better than the one way street a company like Walmart has with its producers.
- In support of these goal, Fair Trade requires a ‘fair wage’ is paid to workers. This is something more than the minimum wage and there are various tools to determine the amount. Prices are set using the true cost of labor and material in a sustainable manner. The goal is not to use up both people and materials at maximum profit and move on. Purchases respect the pricing process rather than say we can get a better price somewhere else where these standards are not followed. Further, buyers are committed to paying in advance and promptly. Practices such as selling on consignment are not favored. In addition, practices such as child labor, dangerous working conditions, sexual or racial discrimination are prohibited and monitored.
- Fair Trade also consider environmental impact of their activities and promote sustainable and recycled products as much as possible. In fact, companies certified by Fair Trade Federation in the United States are not screened for membership into Green America (formerly Coop America) the largest green business network in the United States. In a sense Fair Trade is a parallel market to the rest of global trade.
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Unique Handmade Gifts: 
