Trade Aid Org NZ
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Trade Aid - Making a World of Difference

Fair trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalised producers and workers – especially in the South.

Creating opportunities for economically disadvantaged producers
Fair Trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.

Transparency and accountability
Fair Trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.

Capacity building
Fair Trade is a means to develop producers’ independence. Fair Trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.

Promoting Fair Trade
Fair Trade Organizations raise awareness of Fair Trade and the possibility of greater justice in world trade. They provide their customers with information about the organization, the products, and in what conditions they are made. They use honest advertising and marketing techniques and aim for the highest standards in product quality and packing.
 

Payment of a fair price
A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fair Traders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.

Gender Equity
Fair Trade means that women’s work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.

Child Labour
Fair Trade Organizations respect the UN Convention on the Rights of the Child, as well as local laws and social norms in order to ensure that the participation of children in production processes of fairly traded articles (if any) does not adversely affect their well-being, security, educational requirements and need for play. Organizations working directly with informally organised producers disclose the involvement of children in production.
 

Working conditions
Fair Trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.

The environment
Fair Trade actively encourages better environmental practices and the application of responsible methods of production.

Trade Relations
Fair Trade Organizations trade with concern for the social, economic and environmental well-being of marginalized small producers and do not maximise profit at their expense. They maintain long-term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. Whenever possible producers are assisted with access to pre-harvest or pre-production advance payment.

 

Fair trade organisations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.

Fair trade organisations have a clear commitment to Fair trade as the principal core of their mission

Fair Trade products are those products which are labelled under the FLO certification system and/or produced by Fair Trade organisations such as Trade Aid.

The Fair Trade Organization Mark is a mark awarded to organisations, not products. These are member organisations who belong to IFAT (the International Federation of Alternative Trade). Fair Trade Organisations all over the world, such as Trade Aid, are able to display the Mark, to show that they adhere to the principles of Fair Trade. What's the difference?

 
Rainforest Alliance vs fair trade

McDonald’s now sell Rainforest Alliance (RA) certified coffee in their McCafés.  What is the difference between McDonald’s coffee, and Trade Aid fair trade coffee?

Rainforest Alliance certification requires privately-owned coffee estates and large-scale farms to meet a number of environmental criteria, but includes only minimal consideration for workers’ rights (essentially amounting to compliance with national minimum-wage laws in the producing country).

Trade Aid fair trade practice encourages and rewards farmer-run co-operatives to maintain high environmental standards (all our coffee is certified organic). At the same time, Trade Aid standards meet a number of strict social criteria, including payment of higher prices to farmers and payment of crop pre-financing, which is often critical for farmers in countries where their lending institutions are corrupt.

Why would McDonald’s choose Rainforest Alliance certification, instead of Trade Aid-level fair trade practice?

Their decision is driven by pure business logic: Rainforest Alliance coffee is cheaper than that bought through a high-bar sustainability-focused organization like Trade Aid. McDonald’s knows there is demand for fair trade coffee but assume consumers won’t do their homework. Their logic goes like this: if we put a ‘sustainable’ label on our package, customers will be satisfied, so let’s choose the cheapest. What do customers know about different certification standards?

Well, some know a lot, and won’t let them get away with ‘low-bar’ sustainability.  

Why does Trade Aid support fair trade certification, and not Rainforest Alliance certification?

When farmers have no financial guarantee, they experience pressure to destroy their natural surroundings for short term financial gain. Fair trade relieves financial burdens that are often the motivation for destroying the environment. Given that Trade Aid’s practice offers a better deal for both farmers and the earth, we believe that this combination is a recipe for true positive social change. 

 

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