What is Fair
Trading Company adheres to very strict guidelines on Fair Trade as established
by the Fair Trade Federation. We are also members in Co-op America.
Trading Company is a SWEAT SHOP FREE ZONE. We do not sell anything made
using child Labor nor do we sell factory or sweatshop produced products.
Essentially, Fair Trade
Fair trade is a
trading partnership, based on dialogue, transparency and respect, which seeks
greater equity in international trade. It contributes to sustainable development
by offering better trading conditions to, and securing the rights of,
marginalized producers and workers. Guiding principles of fair trade include:
NO FACTORY PRODUCED
NO CHILD LABOR
OPPORTUNITIES FOR ECONOMICALLY DISADVANTAGED PRODUCERS
PAYMENT OF A
HEALTHY WORKING CONDITIONS
ARTISANS RECEIVE FAIR
WAGES FOR THEIR WORK AND OR FAIR PRICES FOR THEIR PRODUCTS
ARTISANS RECEIVE A
LARGER PERCENTAGE OF RETAIL PRICE - ESSENTIALLY CUTTING OUT MIDDLE MEN
ARTISTS WORK IN SAFE
ARTISANS HAVE ACCESS TO
WE EDUCATE THE CONSUMER
ABOUT THE PRODUCTS
WE GIVE THE ARTISANS AN
PRODUCTS ARE SUSTAINABLY
PRODUCED AND ENVIRONMENTALLY FRIENDLY
BUILDING LONG TERM
RELATIONSHIPS DIRECTLY WITH PRODUCERS
CONSISTENT PURCHASES (we
don't buy once and they never see us again - we place regular orders)
information visit the International Fair Trade Association at www.wfto.com.
Is Zanzibar a
No, Zanzibar Imports
operates as a for-profit company. This does not mean, however, that we benefit
at the expense of our workers and suppliers. Our costs accommodate a fair,
livable wage. We not only pay our international suppliers and employees
living wages, but we also pay our US employees a livable wage, comparable to
We at Zanzibar are strongly
committed to the principles of Fair Trade. Fair trade is NOT FREE TRADE,
however many people make this assumption. FREE TRADE has to do with
lowering import duties or quotas - often for the benefit of major corporations
but rarely for the producers or the country of origin. In many ways FREE
TRADE is the OPPOSITE of FAIR TRADE.
Many of the
products we carry come from low-income artisans in over 100 different countries who are
prices for their goods. We purchase products from small-scale producers
who are paid living wages and work in safe and healthy conditions, have opportunities
for health care and education.
We also work to educate
consumers about the difficulties facing small-scale producers in the Third World
and the importance of purchasing fairly traded products.
This provides consumers
with the choice to make purchases that directly contribute to improving living
and working conditions overseas. This Fair Trade Pledge demonstrates a special
commitment to creating a more socially and economically just global trading
What Do You Get
By Buying Fair Trade?
* The power to foster
justice by strengthening the market for alternatives to sweatshops.
* The knowledge that you are improving the living standards of small-scale
farmers and artisans in Asia, Africa, Latin America and other developing
regions. Every purchase does make a difference.
* The assurance that Fair Trade businesses are meeting the most rigorous
standards for ensuring worker well-being and empowerment.
* A selection of unique, high-quality imports not found in chain stores.
* You are supporting environmentally sustainable production methods.
* A grassroots connection to people in diverse cultures in the developing world.
* An opportunity to encourage manufacturers and retailers that deal in sweatshop
products to stock Fair Trade products instead.
WHO REGULATES FAIR TRADE?
There are several Fair
Trade Watchdog groups - some are international and others are based here in the
USA. Click on any of the following to go to their websites. These
include The Fair Trade Federation,
IFAT - the global network of Fair Trade
Organizations, TransFair USA,
Fair trade Labelling Organizations
International, as well as several others. Some are specific to
food product regulation (ie coffee) while others are more general and deal with
handicraft. Some organizations are specific to their country of origin,
while others are global in their reach. Zanzibar maintains membership in
several of these (relevant) organizations and adheres to their principles.
The Fair Trade Federation
(FTF) (www.fairtradefederation) is an association of fair trade importers,
wholesalers, retailers, and producers whose members are committed to providing
fair wages and good employment opportunities to economically disadvantaged
artisans and farmers worldwide.
FTF directly links low-income producers with consumer markets and educates
consumers about the importance of purchasing fairly traded products which
support living wages and safe and healthy conditions for workers in the
By adhering to social criteria and environmental principles, Fair Trade
Organizations (FTOs) foster a more equitable and sustainable system of
production and trade that benefits people and their communities.
Fair Trade means 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 Federation (FTF)
Paying a fair wage and or fair price in the local context.
Offering employees opportunities for advancement.
Providing equal employment opportunities for all people, particularly the most
Engaging in environmentally sustainable practices.
Being open to public accountability.
Building long-term trade relationships.
Providing healthy and safe working conditions within the local context.
Providing financial and technical assistance to producers whenever possible.
FTF Principles and Practices
Zanzibar Trading Company and FTF members are committed to the following
principles and practices in their trading relationships:
Producers are paid fairly for their products, which means that workers are paid
at least that country's minimum wage. Since the minimum wage is often not enough
for basic survival, whenever feasible, workers are paid a living wage or higher,
which enables them to cover basic needs, including food, shelter, education and
health care for their families. Paying fair wages does not necessarily mean that
products cost the consumer more.
Since Fair Trade Organizations bypass exploitative middlemen and work directly
with producers, they are able to cut costs and return a greater percentage of
the retail price to the producers.
Cooperatives and producer associations provide a healthy alternative to
large-scale manufacturing and sweatshops 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. Safe and
healthy working conditions are maintained and producers gain greater control and
decision making power over the use of their local resources.
Fair Trade Organizations educate consumers about the importance of purchasing
fairly traded products which support living wages and healthy working
conditions. By defining fair trade and conducting business in a manner that
respects workers' rights and the environment, the fair trade movement strives to
educate consumers about the often hidden human costs of their "bargains." By
providing information about producers' history, culture and living conditions,
Fair Trade Organizations enhance cross-cultural understanding and respect
between consumers and communities in the developing world. They also educate
consumers and policy makers about inequities in the global trading system.
Fair Trade Organizations encourage producers to engage in environmentally
friendly practices which manage and use local resources sustainably. Many FTF
members work directly with producers in regions of high biodiversity to develop
products based on sustainable use of their natural resources, giving communities
an incentive to preserve their natural environments for future generations.
FINANCIAL AND TECHNICAL
Small-scale farmers and artisans in the developing world lack access to
affordable financing, impeding their profitability. FTF members that buy
products directly from producers often provide financial assistance either
through direct loans, prepayment or by linking producers with sources of
financing. Unlike many commercial importers who often wait 60-90 days before
paying producers, Many FTOs ensure prepayment so that producers have sufficient
funds to cover raw materials and basic needs during production time. They also
often provide other critical technical assistance and support such as market
information, product feedback and training in financial management. Unlike
commercial importers, FTOs establish long term relationships with their
producers and help them adapt production for changing trends.
RESPECT FOR CULTURAL
Fair Trade Organizations encourage the production and development of products
based on producers' cultural traditions adapted for Western markets. They seek
to promote producers' artistic talents in a way that preserves cultural
FTF members' finances, management policies, and business practices are open to
the public and monitoring by the Fair Trade Federation.
Fair Trade Facts
Worldwide, fair trade sales total $400 million each year.
In North America, fair trade retail sales totaled $35 to 40 million in 1998.
Of $3.6 trillion of all goods exchanged globally, fair trade accounts for only
Fair trade businesses return 1/3 to 1/4 of profits back to producers in
According to the National Labor Committee, a Haitian sewing clothing for the
U.S. market may earn less than 1% of the retail price.
Sales for Ten Thousand Villages, the largest fair trade organization in the
United States, grew from nearly $3 million in 1985 to nearly $12 million in
1998. Ten Thousand Villages' Canadian operations reported another $3 million.
Combined, that represents the creation of the equivalent of 12,500 full-time
jobs for disadvantaged artisans and farmers.
Of its $5.2 million in sales for 1998, SERRV International returned nearly $2
million directly to producers.
North American consumers pay $4 to $11 a pound for coffee bought from growers
for about 80 cents a pound. Growers who sell to fair trade organizations earn
$1.12 to $1.26 a pound.
Sixty to seventy percent of the artisans providing fair trade hand-crafted
products are women. Often these women are mothers and the sole wage earners in
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.
Why Fair Trade?
A Brief Look at Free Trade in the Global Economy
From around the world, we hear heart-wrenching stories about mistreated and
abused workers who earn meager wages. Or worse, we hear about millions of
children sold into servitude or forced to work in unsafe conditions for pittance
wages to contribute to their family's survival. Unfortunately, these stories are
all too common in the new global economy where competitiveness and profits to
stockholders are paramount, and poverty is rising. Increasing globalization,
along with U.S. government support for free-trade and investment agreements, are
exacerbating three intractable problems that now plague almost every nation on
earth: income inequalities, job losses and environmental damage.
Around the world, production, trade and retailing of most goods and services are
increasingly concentrated under the control of a small number of corporations.
Economist John Cavanagh and Frederick Clairmonte have calculated that just over
a quarter of the world's production comes from General Motors, Mitsubishi,
Shell, Philip Morris and 200 of the other largest firms. These firms are the
primary beneficiaries of the world's rapidly growing trade. As they compete with
one another to capture global markets, their primary mode of reducing costs has
been through cutting jobs, wages and benefits. Between 1979 and 1992, for
example, the Fortune 500 largest firms in the U.S. cut 4.4 million workers from
their payrolls globally to remain competitive and keep profits high.
Backed by conventional economists, large corporations have convinced most of the
world's governments that they should maximize global competitiveness through
freer trade. Corporate and government officials often theorize that free trade
will be beneficial for workers, whose wages and benefits can rise as foreign
markets expand for their goods and for consumers who can buy cheap foreign
imports. Following this theory, new regional trade agreements, like the North
American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and
Trade (GATT) are reducing barriers to trade and investment for firms. These free
trade agreements offer firms global protection for their intellectual and
property rights but there are currently no equivalent enforceable global
standards to protect workers and the environment. Furthermore, as barriers to
entering local markets are removed, large scale manufacturers edge small
businesses and local cooperative enterprises out of the market. Local economies
suffer when these firms' profits are channeled out of the country rather than
being reinvested locally. According to World Bank figures, roughly half of the
new foreign direct investment by global corporations in the South in 1992
quickly left those countries as profits.
As a result of these trends, the gap between the rich and the poor has increased
dramatically in recent decades. Today, the richest 20% of the world's population
has 60 times the income of the poorest 20%. The benefits of trade are similarly
concentrated among the wealthiest segments of the world's population and only a
handful of developing countries. For example, of the $102 billion in private
investment that went to developing countries between 1970 and 1992, 72% went to
only 10 countries. Most of those ten were the emerging markets such as China,
Hong Kong Singapore, South Korea and Taiwan. Even in many countries that are
currently experiencing high growth rates from expanded trade, the benefits of
growth are not trickling down to the poor.
Another problem is that the bulk of exports from developing countries tends to
be in primary product commodities, such as sugar, cocoa, coffee, etc., whose
prices generally rise much more slowly than the prices of manufactured goods
imports. This "terms of trade" decline was particularly sharp between 1985 and
1993 when the real prices of primary commodities fell 30%. This translates into
losses of billions of dollars. Free trade agreements do little to enhance the
trading positions and commodity prices of these poor countries. In many cases,
the world market price for commodities such as coffee and cocoa falls below the
cost of production, forcing farmers to sustain huge losses. Fair Trade
organizations offer a crucial alternative by paying farmers a price that always
covers at least production costs.
FAIR TRADE HAS NEVER BEEN MORE IMPORTANT. The business generated by Fair Trade
Organizations in Europe and the U.S. now accounts for an estimated US$400
million, just .01 % of all global trade. Small as it may be, the rapidly growing
alternative or fair trade movement is setting standards that could redefine
world trade to include more social and environmental considerations. Fair
traders believe that their system of trade, based on respect for workers' rights
and the environment, if adopted by the big players in the global economy, can
play a big part in reversing the growing inequities and environmental
degradation that have accompanied the growth in world trade.
Hilary French, author of Costly Tradeoffs: Reconciling Trade and the
Environment, reflects the views of many Fair Trade Organizations: "Trade is
neither inherently good nor bad. But how it is conducted is a matter of great
concern-and an unprecedented opportunity. Trade can either contribute to the
process of sustainable development or undermine it. Given the rapidly
accelerating destruction of the earth's natural resource base, there is no
question what the choice must be."
For Fair Trade Organizations, the choice is simple. Whether trade is good for
producers and consumers depends entirely on how the goods are made and how they
Fair Trade brings the benefits of trade into the hands of communities that need
it most. It sets new social and environmental standards for international
companies and demonstrates that trade can indeed be a vehicle for sustainable
Today, a growing movement of workers, environmentalists, consumers, farmers and
social movements worldwide is calling for a different framework for trade. They
want a global trading system that promotes workers' rights, protects the
environment and sustains the ability of local producers to meet community needs.
Together, as consumers, they can make a huge difference by demanding significant
changes in the ways goods are produced, and vote with their dollars for a more
just and environmentally sound trading system.
BUY FAIR TRADE!
MAKE TRADE FAIR!
If you have questions or
would like to speak with us regarding Fair Trade, please contact us!