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As all Fair Trade organizations,
Pacha World, actively seeks out disadvantaged
producers-especially woman & indigenous people and helps them create development opportunities that respect
their culture & steward their local environment. We
believe Fair Trade is the key to building
economically sustainable communities throughout the world.
Fair Trade:
Fair Trade is an international sustainable trading model based
on economic justice. It is an equitable and fair partnership
between marketers in North America and producers in Asia,
Africa, Latin America, and other parts of the world. A fair
trade partnership works to provide low-income artisans and
farmers with a living wage for their work.
Fair Trade Criteria:
- Paying a fair wage – a living
wage - in the local contex
- Offering employees opportunities
for advancement
- Providing equal employment opportunities
for all people, particularly the most disadvantaged
- Forced labor and exploitative
child labor are not allowed
- Engaging in environmentally sustainable
practices
- Being open to public accountability
- Building long-term trade relationships
- Providing healthy and safe working
conditions
- Providing financial and technical
assistance to producers whenever possible.

Fair Trade Benefits:
- Values and preserves traditional
cultures
- Generates fair income for artisans
around the world
- Educates consumers about trade
and cultures
- Gender equity: 70% of
craft artisans are woman
- Provides resources for community
development
- Promotes environmental stewardship
- Promotes democratic participation
in cooperative structures
- Supplements income in between
harvest cycles
- Promotes ties between producers,
traders and consumers

Free Trade vs. Fair Trade
NAFTA’s Free Trade Agreements protects the firms intellectual
and property
rights but does not protect the workers rights or the environment. This
is allowing Multinational Corporation to bid down manufacturing
contracts making them extremely profitable. At the same
time workers in these developing countries that have liberalized
trade laws to attract these corporation, are making 20-30%
less* than they would have if the Free Trade Agreements were
not in place.
-UN Conference on Trade
and Development
What Fair Trade does is promotes
equitable trading relationships that benefit workers, help
sustain the environment, and build healthy communities.
Why do fair trade organizations
support cooperative workplaces?
Cooperatives and producer associations provide a healthy alternative
to large-scale manufacturing and sweatshop conditions, where
unprotected workers earn below minimum wage and most of the
profits flow to foreign investors and local elites who have
little interest in ensuring the long term health of the communities
in which they work. Fair trade organizations work primarily
with small businesses, worker owned and democratically run
cooperatives and associations which bring significant benefits
to workers and their communities. By banding together, workers
are able to access credit, reduce raw material costs and establish
higher and more just prices for their products. Workers earn
a greater return on their labor, and profits are distributed
more equitably and often reinvested in community projects
such as health clinics, child care, education, and literacy
training. Workers learn important leadership and organizing
skills, enabling self-reliant grassroots-driven development.

How Fair Trade Organizations
Differ from Commercial Importers
- Their goal is to benefit the
artisans they work with, not maximize profits. By reducing
the number of middlemen and minimizing overhead costs, FTOs
return up to 40 percent of the retail price of an item to
the producer.
- They work with producer co-operatives
that use democratic principles to ensure that working conditions
are safe and dignified, and that producers have a say in
how their products are created and sold. Co-operatives are
encouraged to provide benefits such as health care, child
care and access to loans.
- They encourage producers to
reinvest their profits into their communities. Many producers
who work with FTOs have committed time and money to build
health clinics and support other community projects in their
villages.
- Some Fair Trade Organizations
work to shift processing and packaging activities to the
developing world, so that as much work as possible will
remain in the producer country. Often, such activities are
performed abroad, depriving the neediest countries of the
opportunity to boost their incomes.
-by The Fair
Trade Federation
For more Fair Trade Information
and Organizations please see our Resource
Page.

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