A Primer on Fair Trade

The Fair Trade movement is comprised of producers, importers, activists, organizations and consumers working together on a global scale to prove that an equitable international trading system is possible. As the umbrella industry group F.I.N.E -- composed of the Fairtrade Labelling Organizations International, the International Fair Trade Association, the Network of World Shops, and the European Fair Trade Association – defines it, Fair Trade is a trading partnership based on dialogue, transparency, and respect that contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers, especially those in the global south.

The movement has a multi-faceted history. Some see connections to the cooperative movement in Europe in the 1800s, to Fair Trade used as an international developmental tool after World War Two, to an inspired church volunteer in Pennsylvania connecting with seamstresses in Puerto Rico to sell their crafts in her basement. However you choose to look at it, Fair Trade has always been about a people-centered globalization, aiming to give producers a chance to succeed in the global market and for consumers to use their purchasing power to make social and economic change in the world.

What Counts As Fair Trade?

Several Fair Trade organizations have developed the movement's core criteria and principles which include a fair wage or price, safe working conditions, transparency and accountability, environmental sustainability, long-term professional partnerships and equal employment opportunities. Many consumers are surprised to find out that these standards - some of which were developed in the West in response to Industrial Age workplace abuses - aren't in place around the world, and that they benefit from lax regulations and human rights violations. Fair Trade, therefore, not only ensures workers' rights, but also gives consumers a better idea of where their products are coming from and that it was produced in a sustainable manner (an estimated five million producers and their families from developing countries in the global south have reaped the benefits of Fair Trade).

Certification and Labels

To this end, a large part of the Fair Trade movement has centered on the certification and labeling of products (similar to the growing organic foods movement in the U.S.). The Fairtrade Labeling Organization (FLO), a non-profit association comprised of the umbrella organization of Labelling Initiatives, Producer Networks, traders and external experts, came up with standards for a Fair Trade certification and labeling system for commodities such as coffee and chocolate. FLO works with global agricultural producers to assure that they are upholding fair trade standards as set forth by the FLO Standards Committee. On a federal level, national bodies such as TransFairUSA in the U.S. work with importers and processors to certify them as fair trade.

A certified label has yet to be developed for Fair Trade crafts, but there is a global network of fair trade importers, wholesalers and retailers that belong to either the International Fair Trade Association (IFAT) or the Fair Trade Federation (FTF). Members of both organizations are committed to all Fair Trade principles and stand by the concept of working directly with artisan groups and selling 100% fairly traded products.

The Essence and Future of Fair Trade

Fair Trade is about more than just a fair price. It goes beyond simple economics to empower producers in developing nations, women, youth, people with disabilities, and even the consumer. Indeed, Fair Trade has introduced radical new ideas about community development, affected local political and business structures with the democratic nature of the cooperative, and helps the environment by promoting organic and sustainable practices. However, adherents continue to debate and refine what Fair Trade is, should be, and can be. There's a growing concern about the expansion of Fair Trade, with mainstream companies accused of diluting the Fair Trade name, questions about the certification system, and talks of raising Fair Trade standards. Yet through all this debate and fuss, fair traders agree that Fair Trade must stay true to its core values if it is to grow stronger as a movement and make a real impact globally and locally.