CGW4U Fair Trade

What is Fair Trade?  An international system of doing business  Contributes to sustainable development by offering better trading conditions for producers and workers in developing countries  Necessitates rigorous international system of monitoring, auditing, and certification

Key Goals  The international Fair Trade system is designed to produce the following outcomes for farmers/workers in developing countries: Fair compensation for their products and labour Sustainable environmental practices Improved social services Investment in local infrastructure

How it works  Similar to a normal supply chain, but with fewer intermediaries  Monitoring and certification Internationally: FLO (Fair Trade Labeling Organizations International) In Canada: TransFair Canada  Adhere to Fair Trade Standards  Do business with certified producers

Verification and Auditing Producers Importers Licensees (Processors) Retailers Consumers FLO InternationalTransFair Canada

Principles of Fair Trade  Creating opportunities for economically disadvantaged producers  Transparency and accountability  Capacity building  Promoting Fair Trade  Payment of a fair price

Principles of Fair Trade  Gender Equity  Working conditions  Child Labour  The environment  Trade Relations

Questions  What is a “fair wage”? Based on  amount of time, skill effort involved in production  Minimum for a living wage in that region  What types of goods are encompassed in Fair Trade? Coffee and chocolate Also rice, tea, cotton, wine, clothing, soap and handcrafted goods (to name a few)