strategy

Providing fair and secure trading system

Synonyms:
Providing fair trading
Description:
Providing for an equitable, secure, non-discriminatory and predictable international trading system.
Context:
This strategy features in the framework of Agenda 21 as formulated at UNCED (Rio de Janeiro, 1992), now coordinated by the United Nations Commission on Sustainable Development and implemented through national and local authorities. Agenda 21 suggests that, with the goal of achieving sustainable agricultural development and consistent with relevant internationally agreed principles on trade and environment, a more open and non-discriminatory trading system and avoidance of unjustifiable trade barriers would, together with other policies, facilitate further integration of agricultural and environmental policies so as to make them mutually supportive.
Implementation:
A UK-based fair trade importer makes the following commitment to its third world suppliers (mainly coops) in its purchasing policy : (a) paying fair prices; (b) making advance payments with order, where needed; (c) not switching suppliers to get lower prices or quicker delivery; (d) developing long-term business relationships; (e) providing product development, design, business management and market intelligence inputs; preferring products with high local added value; (f) action and campaigning on behalf of producers to eliminate barriers to third world trade; (g) informing customers, sales representatives and retailers about producers and their products. In return it seeks the following commitment from its suppliers: that (a) it is organized primarily for the benefit of producers (mainly farmers and craft workers); (b) to pay fair wages and provide better than average working conditions; (c) to encourage producers' participation in ownership and decision making.
Constrains:
Inflating prices
Problems:
Unfair trading
Type Classification:
E: Emanations of other strategies