Page 8 - Economy_Fair Trade International Trade

8

Regarding the payments and products, on the one hand, suppliers respect contracts and delivery products
on time and on the other hand, buyers acknowledging the disadvantaged situations suppliers and
producers might face, ensure orders are paid following the guidelines and on receipt of documents.
Regarding the payed interest rates by the supplier, must not be higher than the buyers’ cost of borrowing
from third parties.

For Handicraft FT products, an interest free pre-payment of at least 50 % is made on request. For Food FT
products, pre-payment of at least 50% at a reasonable interest is made if requested.

When suppliers receive the payments, the supplier ensure the pass of the payment to the producers or
farmers of Fair Trade products. Furthermore, when a cancellation is made by supplier or buyer, in both
cases it is required to be consulted with the other party and a suitable compensation is ensured.

Principle Four: Payment of a Fair Price

The fair price is a result of mutual dialogue and participation and mirrors the fair payment to producers but
also sustained by the market. The fair payment is considered by the producers and takes into consideration
the principle of equal payment by women and men, it is the socially acceptable remuneration.

Principle Five: Ensuring no Child Labour and Forced Labour

It is ensured that there is no forced labour and the organization adheres to the UN Convention on the
Rights of the Child, and national / local law on the employment of children.

Principle Six: Commitment to Non-Discrimination, Gender Equity and Women’s Economic Empowerment
and Freedom of Association

The organization respects human rights and equality by not discrimination in religion, national origin,
sexual orientation, hiring, remuneration, race, political affiliation, HIV/Aids status, age, gender or disability.
There is clear policy to promote gender equality that assure non gender discrimination to access the
resources and training.

Principle Seven: Ensuring Good Working Conditions
The organization complies with local, national laws and ILO conventions regarding safety and health.
A professional and healthy working space and environment is established and provided.

Principle Eight: Providing Capacity Building
The organization aims to increase the positive development of small and marginalized organizations or
producers through Fair Trade. The organization works and collaborates directly with small producers to
develop specific activities in order to help them to improve management, production processes and
capabilities and access to markets.