Alternative trading organization

An alternative trading organization (ATO) is a non-governmental organization (NGO) explicitly committed to realigning exploitative global trading structures, particularly those involving partners in developing countries. ATOs typically work with disadvantaged artisans and farmers in developing countries to build their businesses and market their products (mostly handicrafts and agricultural goods) directly to consumers in Northern markets.

The historically largest and most influential ATOs include Cafédirect, Traidcraft, Oxfam Trading and the Day Chocolate Company in the UK, Equal Exchange and Ten Thousand Villages in the United States, Ctm altromercato in Italy, Alter Eco in France and Gepa3 Fair Handelshaus in Germany.

ATOs are often, but not always, based in political and religious groups, though their secular purpose precludes sectarian identification and evangelical activity. Philosophically, the grassroots political-action agenda of these organizations associates them with progressive political causes active since the 1960s: foremost, a belief in collective action and commitment to moral principles based on social, economic and trade justice.

Principles and Practices

Alternative Trading Organizations generally support the following Fair Trade principles and practices in trading relationships:

Creating opportunities for economically disadvantaged producers

Fair trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.

Transparency and accountability

Fair trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.

Capacity building

Fair trade is a means to develop producers’ independence. Fairtrade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.

Payment of a fair price

A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fairtraders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.

Gender equity

Fair trade means that women’s work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.

Working conditions

Fair trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.

Environment

Fair trade actively encourages better environmental practices and the application of responsible methods of production.

See also

• Fairtrade labelling