What Is a Fair Trade Company?

Fair trade is an organized social movement. Among fair trade labels and related products, it promotes a fair standard for global labor, environmental protection and social policies. Its products range from handicrafts to agricultural products. However, the movement pays special attention to those exporting from developing countries to developed countries.

fair Trade

Fair trade is an organized

The promotion of fair trade was originally in support of social justice and relief.

The most widely accepted definition of fair trade

In trading relationships, the Fair Trading Movement advocates supporting the following general principles and practices:

* Create opportunities for economically disadvantaged producers

Fair trade is a strategy for sustainable development and poverty alleviation. Its goal is to create opportunities for producers who are economically weak or marginalized in traditional trading systems.

* Transparency and accountability

Fair trading deals with trading partners with a transparent management model and business relationships, with equality and mutual respect.

* Capacity building

Fair trade is a means of developing the independence of producers. The relationship of fair trade provides a continuity, in which producers and their market organizations can improve their management skills and their ability to explore the market.

* Fair price payment

Fair price is a mutually agreed price formed through dialogue and participation. It not only includes production costs, but also meets the principles of social justice and environmental protection. It provides fair pay for producers, and also considers men and women. The principle of equal pay, fair traders guarantee to pay their partners as soon as possible to help producers to pass the financial situation of the pre-harvest or pre-production period.

* Gender equality

Fair trade can properly evaluate and pay women's labor. Women's remuneration is determined by their contribution to the production process, and women are empowered in the organization.

* Working conditions

Fair trade provides producers with a healthy and safe working environment. With the participation of children, it must not affect the child's complete growth, safety and education requirements. At the same time, it must comply with United Nations child rights practices and local regulations.

* Environmental protection

Fair Trading actively encourages better environmental practices and responsible production practices.

The main structure of the fair trade movement

Most fair trade importers belong to one or more domestic or international alliances. These alliances coordinate, promote and promote the work of fair trade organizations. The following table lists some of the largest and most influential organizations. :

* Fairtrade Labelling Organizations International (FLO), founded in 1997, is the largest and most recognized standard setting and certification fair trade label issuing group. It has more than 50 in Africa, Asia and Latin America. There are regular inspection and certification production organizations in each country, including about one million agricultural and working families.

* International Fair Trade Association (IFAT), founded in 1989, is a fair trade production company and association, export company, importer,

Fair trade for the first time in Northern Hemisphere market

Today's Fair Trade movement was shaped in Europe in the 1960s. During this period, Fair Trade was often regarded as a political gesture against neo-imperialists. The radical student movement began to focus on multinational companies, and a new business model emerged. Basically flawed consensus. The slogan "Trade not Aid" was adopted by the United Nations Conference on Trade and Development (UNCTAD) in 1968. And gained international recognition. The conference emphasized the establishment of a fair trade relationship with the developing world.

The first Alternative Trading Organization (ATD) was born in 1965: That year, British non-governmental organizations

It wasn't until the first Fair Trade labeling operation began that sales of Fair Trade goods really increased substantially. Although growing sales are quite impressive, Fair Trade only appears in sporadic world stores in Europe and is slightly extended to North America. Some people think that these stores are too far away from the modern lifestyle and pace. Even the most enthusiastic customers find it very inconvenient to go to these stores. There is only one way to increase

In the past decade, global fair trade sales have increased significantly, especially for products with a fair trade label. The increase in sales has been even more significant. In 2005, the global sales volume was about 1.1 billion pounds, growing at a rate of about 37% each year. In October 2006, FLO certified 586 production organizations in 58 developing countries, of which more than 150 organizations were registered in IFAT (International Fair Trade Association).

Commodity certification by FLO Fair Trade Label

Note: Generally when Fair trade is merged and written as Fairtrade, it is usually used in the commodity system for FLO.

Fairtrade Labelling (Fairtrade Labelling), often referred to as "Fairtrade" or "Fair Trade Certified Mark" in the United States, is a certification system that allows consumers to Identify products that meet standards. This system is overseen by a standards-setting organization (FLO International) and a certification organization (FLO-CERT) and is responsible for independent audits of producers and traders to ensure compliance with standards.

Whether it is affixed with "

IFAT Fair Trade Organization Certification

In order to complement the certification system for fair trade commodities, while allowing most craft producers to sell products outside of world stores, the International Fair Trade Association (IFTA) issued a new seal to certify organizations (as opposed to FLO International's Product certification), this mark is called FTO Mark, which allows consumers to identify registered fair trade agencies around the world, while also ensuring that standards such as working conditions, wages, child labor and the environment can be implemented.

FTO Mark, for the first time, provides consumers, old and new business partners, governments and donors with a way to identify fair trade organizations, including those who produce handicrafts.

There have been recent independent studies evaluating the impact of fair trade on vulnerable farmers and workers.

In 2002,

In fair trade, an easily discovered fact is that it considers the current global trade organization to be "unfair". When people advertise for fair trade, they usually use

Those fair trade propaganda also pointed out that out of order competition in the global goods market since the 1970s and 1980s, leading to a "bottom race" in prices; from 1970 to 2000, many

Connotation of Fair Trade

"Import and export fair trade" is a new concept derived from free trade in the United States. Its main symbol is the "United States Trade and Competition Act 1988" passed by the United States Congress in August 1988. This means that the laissez-faire foreign trade policies pursued by successive US administrations after World War II have undergone major changes in form.

Basic requirements for fair trade

The core content of the basic requirements of fair import and export trade is to require governments of member countries of international trade, industry associations, producers and operators of import and export trade and other relevant parties not to use unfair trade methods to conduct or distort international trade competition, especially Dumping and subsidies cannot be used to sell products in other countries. WTO rules emphasize that exporting domestic products in the form of dumping or subsidies causes substantial damage to the domestic industry of the importer, or threats of substantial damage, the importer may take anti-dumping, countervailing, Safeguard measures and other trade remedy measures. At the same time, WTO rules emphasize that members are opposed to abusing the above trade remedy measures in order to achieve their trade protection purposes in disguise.

Fairness in multi (dual) border trade relations

On the basis of free trade, taking the pursuit of fairness as a means to promote the consistency of multi (dual) bilateral trade policies is the most basic meaning of fair trade in imports and exports, that is, the original intention of Americans to create this concept. The United States has always advertised itself as a model for free trade. Except for the control of national security products, the general import and export trade is basically laissez-faire. Under this policy, foreign products can enter the US market freely, and there are still certain obstacles for US products to enter the foreign market, which has further exacerbated the significant increase in the US trade deficit year by year. According to figures released by the US Department of Commerce, the US merchandise trade deficit in 2000 reached 449.5 billion US dollars. For this reason, Americans are eager to make large-scale adjustments to international trade relations, but they cannot abandon the banner of free trade, so there is a fair trade in imports and exports. The basic proposition is that the United States still continues to open its domestic market to foreign products, but foreign markets should also open the door to convenience for American products. As the process of economic globalization continues to accelerate, fair import and export fair trade has become an offensive trade strategic weapon that the United States conforms to and promotes economic globalization and intends to dominate the process of economic globalization, which often manifests itself with a lot of trade retaliation List of measures for trade war against countries.

Equality and mutual benefit are the cornerstones of developing multi (bi) lateral trade relations. With the development and evolution of trade relations, especially the further development and deepening of international trade relations caused by active participation in economic globalization, the role of equality and mutual benefit has become increasingly important. In this sense, excluding the negative meaning of the concept of "fair import and export trade" which is given by Americans to strengthen the promotion of economic hegemonism regardless of the specific national conditions of other countries, and to reform its positive aspects such as equality and mutual benefit. , Enrichment and development, the concept of "Import, Export, and Fair Trade" can be used by me and accepted by most trading partners.

Fairness of international trade rules

The WTO is the first time in human society to try to resolve trade disputes through negotiations around the world, to reach consensus through mutual tariff reductions, and to promote customary practices to rules for common observance in order to avoid vicious competition in the field of international trade. Permanent establishment. In terms of form, competition among WTO parties in the field of international trade has basically been able to act in accordance with the mutually agreed "rules of the game". WTO members trade according to the rules is fair trade. In this sense, "fair trade in imports and exports" is "regular trade."

On the other hand, although most of the rules of the WTO are determined through the negotiation and negotiation of all members and have been observed in practice, fairness in form cannot cover up the actual unfairness. Because the strengths of the parties participating in the negotiation and negotiation are very different, the status of the parties to the negotiation is naturally different, and the influence they can exert on the rules that are finalized is also different. In addition, countries and regions that have not yet joined the WTO must also follow the established rules of the WTO when they trade with WTO members, but they have not participated in the formulation of these rules, and it cannot be said that their will is fully reflected in the existing rules.

Fairness of International Trade Subjects

Generally speaking, under the conditions of a market economy, no subject of economic activity should be restricted in the field of economic activities, including restrictions on not engaging in international trade activities. All economic activity subjects have the right to decide for themselves whether to engage in international trade. activity. The promulgation and continuous improvement of the "Foreign Trade Law of the People's Republic of China" is an important sign of the establishment of a free trade system with Chinese characteristics. The implementation and continuous improvement of this law will open up a wider range of realistic possibilities and broader development prospects in China to identify and reflect the fairness of the main body of international trade.

Fairness of international trade activities

International trade activities are cross-border business practices, full of competition. In order for these competitions to proceed in an orderly manner, there are many common international practices that reflect fair competition, such as export tax rebates, anti-dumping, countervailing measures, safeguard measures, automatic export restrictions, and so on. With the establishment of the WTO and the continuous increase in its membership, these practices have been used more and more widely throughout the world, and have become the most common aspect of the characteristics of fair trade in imports and exports.

In terms of export tax rebates, the general principle is to allow domestic products to be placed on the international market in a non-taxed manner, so that the price of the product is determined entirely by the cost of production and does not rise due to taxation in the exporting country, thereby increasing international competition in the exporting country's products. The purpose of force.

Anti-dumping, countervailing, and safeguard measures, such as trade remedy measures designed to maintain fair trade in imports and exports, are protection measures that importing countries are allowed to take when they are hit by unfair trade practices. The use of these methods must strictly comply with the legal procedures that comply with the requirements of the WTO agreement framework. From the investigation of the case to the preliminary ruling, final ruling, review, etc., it also requires a lot of time and human, material and financial resources. Therefore, importing countries generally do not take these relief measures easily, but under certain conditions, decisive measures are necessary to maintain the vital interests and economic security of importing countries.

Automatic export restrictions are a way for exporting countries to face accusations from importing countries, recognizing that these allegations are against them and forced to seek out-of-court settlement. Practice has proved that almost no exporting country has taken this measure out of its own consciousness.

China's Import and Export Fair Trade Work

In summary, it is not easy to truly reflect the fairness of international trade. For this reason, in addition to actively joining and promoting the development of the WTO system, countries, especially the major trading nations, often set up specialized fair trade agencies to engage in fair trade in imports and exports. The Ministry of Commerce), the Import and Export Fair Trade Bureau and other institutions, the effectiveness of these organizations and institutions have a major impact on the establishment of a new pattern of fair and mutually beneficial international trade.

In the past two years after China's entry into the WTO, the world economy has grown slowly and international trade protectionism has intensified. However, due to China s correct and reasonable application of WTO rules including fair trade in imports and exports, proper handling of international trade disputes, and a preliminary win-win situation of import protection and export maintenance was achieved, effectively safeguarding China s foreign trade import and export. The fair trade environment has enabled China's foreign trade to achieve sustainable and healthy development. As of January 10, 2002, China's investigation cases of various foreign anti-dumping, countervailing and safeguard measures have decreased by 20% year-on-year, thereby favorably promoting the development of China's foreign trade. In 2002, China's foreign trade import and export volume exceeded US $ 600 billion, and its ranking among the world's largest trading countries rose from sixth to fifth. The actual absorption of foreign capital exceeded US $ 50 billion, and it surpassed the United States for the first time to become a global foreign direct investment The largest number of countries, thus making China a country with the "best development in foreign economic and trade undertakings and the best performance in the WTO". These achievements have been achieved to varying degrees thanks to the establishment and effective implementation of fair import and export trade policies.