The Principles of Fairtrade

We, at Newtree, uphold the ideology that every life matters. That’s why we engage in Fairtrade commerce with small farming communities intending to support and protect them. NewTree products are therefore entirely Fairtrade and certified by the company Fairtrade International (FLO, ID – 23792)

The meaning of Fairtrade

The word “Fairtrade” is unmistakably composed of two parts who are both quite self-explanatory, “fair” and “trade”. Simply put it aims to make trade equitable and fair. Although it sounds so simple it is has become a very complex notion through time as corporations are sometimes unaware of the secondary effects they have on minor communities they exploit.

Fairtrade is an organization who aims to create a more equitable relationship between small producers in developing countries and large multinational corporations in more economically developed countries, all in a sustainable manner. Fairtrade’s objective is not to solve poverty through charity but aims more to resolve the faulty building blocks of trade in order to create a more profitable link for both sides. Fairtrade tackles the disequilibrium created between the large corporation and small community by reintroducing a viable dialogue with the hope of bringing transparency and respect to each party and their respective environments.

The company Fairtrade International believes that small producers in countries within the Southern Hemisphere produce over 70% of the developed countries’ food, keeping in mind that they must also feed themselves. Despite this situation, these small producers are enduring severe hardship as they are unable to negotiate fair conditions with multinational corporations who set enormous pressure on keeping the prices at a minimum. These types of circumstances are even more critical and noticeable in countries whose economies are financed off the exportation of raw materials, particularly those exporting crops and produce. Nevertheless, if every actor―the distributor, the producer, the consumer and the general public―within this exchange has the will, then it is entirely possible to reform modern trade into a more equitable commerce.

This is the challenge that Fairtrade aims to solve, because changing the way trade works today, means changing millions of lives around the globe.

It’s principles

The principles of Fairtrade are mostly based on the three building blocks of Sustainable development, which are the economic, social and environmental pillars.


The economic pillar aims to establish better commercial conditions for the farming community. The first step in achieving this goal is by starting with a more equitable payment covering not only production costs but also a fair social wage. These prices can be fixed with a dialogue between the producer and distributor. Additionally, Fairtrade guarantees economic stability for the producers by creating lasting stable economic relations along to ensuring immediate payments and financing of credits before the periods of crop-picking and production.


The Fairtrade organization also accords importance to the improvement of laborers working conditions and their respective standard of living. Firstly, this social pillar can be directly enhanced through more reasonable wages distributed by the producer, which can be used not only to improve the laborer’s standard of living but also their family’s. Secondly, Fairtrade ensures that the fundamental rights of the producer and worker are respected with dignity by consistently verifying the working conditions. A working environment, according to Fairtrade, will always remain safe and exclude all forms of exploitation. Consequently, this system also fights against any form of child labor and gender discrimination. It aims to promote the role of women in less developed economies by assuring a completely gender-equal working environment where women hold as much power as men and are remunerated in the same manner. In addition to a reasonable wage, cooperatives receive a bonus dedicated to the implementation of social projects, training and awareness, or the purchase of equipment.


The preservation of nature also plays a big role in the Fairtrade notion as it is its third major pillar. Fairtrade promotes responsible practices by ensuring that cultures remain of reasonable size, by protecting local natural resources and by banning dangerous pesticides and GMO’s. Lastly, Fairtrade also encourages farmers to convert to organic agriculture by making the goods more expensive and subsidizing the farmers to reduce production costs.

How fairtrade works

In order to complete these objectives, Fairtrade International established a system that certifies producers that respect the standards and strict specifications mentioned hereinabove. On the distributer’s side, a company can display the Fairtrade logo on their products by purchasing from certified producers holding a fairtrade license and by respecting all the other standards imposed by Fairtrade International. We at Newtree can proudly display this logo on all our products.

For you?

As a consumer, the Fairtrade label allows you:

  • to have full transparency of the product’s origin
  • to know that the price you pay for our products guarantees a fair payment to the producers/laborers as well as a sustainable production that respects the environment
  • to be assured that the products you will be consuming have been prepared in a socially and environmentally safe work zone.
  • to know that by changing the way you consume you are contributing to change and improve lives across the globe


Although each of these actions is a step forward in making the world a better place, it is still not enough to change the world. That’s why at Newtree, we are developing relations with small cooperatives in South America in order to endorse a form of agriculture that promotes the plantation of trees and the protection of wildlife. This project envisages generating a positive environmental, social and economic impact, in such a way that producers and nature can durably thrive side by side.


For more information visit: Fairtrade International

You will also like