How Fair Trade works
Excerpts from www.transfair.ca (http://www.transfair.ca/en/fairtrade/standards/), Jan 2005
Trading Standards
Trading standards stipulate that traders must:
• Pay a price to producers that covers the costs of sustainable production and living
• Pay a Fair Trade Premium that producers can invest in development
• Partially pay in advance, when producers ask for it
• Sign contracts that allow for long-term planning and sustainable production practices
Obligations of Canadian Licensees
To become and remain licensed, companies selling products bearing the Fair Trade Certified logo must fulfill these requirements:
• If they sell conventional products in addition to Fair Trade Certified products, maintain business
systems that distinguish between the two.
• Report transactions with traders/producer organizations on a quarterly basis including payment of
a set license fee per product in relation to sales for that quarter
• Submit to an audit of records.
• Use the Fair Trade Certified logo according to norms designed to protect consumers.
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All Equita products are certified Fair Trade products. In addition to its trading organization obligations, Oxfam Fair Trade is also, as a part of non-profit humanitarian organization, dedicated to educate consumers on the effects of globalization and on how ethical consumption can be a powerful tool to change the world.