Guiding Principles


THE BASIC PRINCIPLES OF EQUAL AND JUST TRADE

Over 30 yeras ago a number of non-governmental organizations in Holland and Sweden initiated a new form of cooperation with less industrialised states. Thanks to the new system, small scale producers could channel more of their revenue in long term development, particularly in matters concerning economic development and social justice.

The guiding principles of equal and just trade include the following:

(1) Products and services are acquired directly from cooperative societies that operate in various sectors such as the agricultural, the textile and the handicrafts sectors

(2) The ultimate price that the consumer pays should reflect the real production costs and should guarantee a reasonable profit margin that should be re-invested in social projects

(3) The price for the acquistion of raw materials should be established before the goods are delivered

(4) Help should be directed to develop production techniques that respect the local traditions of the means of production

(5) Esablish long term contracts

(6) The proucts manufactured in these projecst use as much raw material derived from the counties of origin as possible. Emphasis is also placed on the use of recyclable raw materials and the use of production technologies that are enviromently friendy and that respect the local culture. In the case of agricultural products this calls for the use of oganic-biologic styles of farming.


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