Page 6 - Economy_Fair Trade International Trade

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Chapter 1

Social and Economic Impact

1.1 Fair Trade

‘FAIRTRADE is the Fairtrade Label for the Sustainability of People and Planet’

Fair Trade is the sustainable and fair trade with its characteristics of fair prices, decent working conditions,
fair terms of trade and sustainable practices and products. Fair trade addresses and removes the injustices
and discriminations of conventional trade.

Fair Trade International is an international non-profit organization with the main objective of empowering
and enhancing workers and producers in developing countries through trade, in a sustainable and
responsible manner. Fair Trade allows and promotes through tools and services, to connect producers and
consumers.

Source: Fairtrade (Fair Trade International, 2019)

1.2 The 10 Principles of Fair Trade

The World Fair Trade Organization (WFTO) prescribes 10 Principles of Fair Trade that organizations
committed to fair trade must follow. The 10 Principles of Fair Trade are the following:

Principle One: Creating Opportunities for Economically Disadvantaged Producers

Poverty reduction is a key objective of the organization. The organizations enable marginalized small
producers, family businesses, associations and co-operatives, to move become self-sufficient economically
and have ownership. Fair Trade is a strategical approach created with the aim to alleviate poverty and
enable sustainable development. Social and economic opportunities are created though the cooperation
and trading with marginalized producers.