Fairtrade is not just about setting standards for trade and production, the standards relate to three areas of ongoing development, social, economic and environmental. The point of Fairtrade can be summarised below:
- To ensure a guaranteed minimum price agreed with producers
- To provide an additional Fairtrade premium to be invested into projects that enhance the local society, economy and environment
- To allow payment upfront for producers who require it
- To emphasize the idea of partnership between traders
- To facilitate longterm trade relationships
- To set clear standards to ensure conditions of production and trade are fair and responsible.
Social standards
The social standards guarantee that members/workers of Fairtrade products:
- have their international, workers rights protected
are allowed to join a Trade Union
- have fair conditions of employment (wages, working hours, paid overtime, sickpay and holiday)
- are not employed as children (under 15) and that slavery is not used
- are not discriminated against in ANY way
- have a safe working environment
Economic standards
The economic development standards ensure that the organisation can effectively export their product and administer the Fairtrade premium on behalf of its members.
The premium is an additional sum of money which is paid on top of the minimum Fairtrade price for investment in projects. It is generally spent in education and healthcare, farm improvements to grow additional crops or increase harvests, or improves processing facilities to increase income.
Environmental standards
These standards are designed to make sure that the producer and its members/workers protect the natural environment and make environment protection a key part of managing the farm.
There are clear rules about use of chemicals, disposal of waste and protecting natural resources like forests and rivers. Where possible producers are encouraged to work towards organic practices by minimising chemical fertilisers and insecticides.