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Fair Trade


By economics-editor - Posted on 10 May 2008

Fair trade is a trading partnership based on dialogue, transparency and respect. It focuses in particular on exports from developing countries to developed countries. It advocates the payment of a fair price and promotes consciousness of social and environmental standards that are related to the production of a wide variety of goods, such as handicrafts, coffee, sugar, cotton, etc.

Fair trade's strategy is to deliberately work with marginalised producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency. Some of the principles that fair trade advocates are:

• Creating opportunities for economically disadvantaged producers;
• Transparency and accountability when dealing with trading partners;
• Capability, management skills and independence building of producers;
• Payment of a fair price, agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound;
• Gender equality;
• Safe working conditions;
• Environmental protection