Fair trade is a trading partnership, based on dialogue, transparency and respect, which seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers - especially in the South. Fair trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.
This definition was created by FINE, an informal Association of the four main fair trade networks (Fairtrade Labelling Organizations International, International Fair Trade Association, Network of European Worldshops and European Fair Trade Association)
Workers sorting and pulping coffee beans on a
fair trade plantation in Guatemala
Key fair trade principles:
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. Fair trade 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.
Environmental protection
Fair trade actively encourages better environmental practices and the application of responsible methods of production.
Fair Trade Organizations:
The Fairtrade Labelling Organizations International (FLO), created in 1997, is the largest and most widely recognized standard setting and certification body for labelled Fairtrade. It regularly inspects and certifies producer organizations in more than 50 countries in Africa, Asia and Latin America, encompassing approximately one million families of farmers and workers.
TransFairUSA is the only independent, non-profit certification agency for Fair Trade products in the United States. Look for the Fair Trade Certified label when purchasing coffee, cocoa, vanilla, fruit, tea, sugar, rice and herbs.
The International Fair Trade Association (IFAT) is a global association created in 1989 of fair trade producer cooperatives and associations, export marketing companies, importers, retailers, national and regional fair trade networks and fair trade support organizations. In 2004 IFAT launched the FTO Mark which identifies registered Fair Trade Organizations (as opposed to the FLO system, which labels products). IFAT has nearly 300 member organizations in over 60 countries.
The Fair Trade Federation (FTF) is an association of Canadian and American fair trade wholesalers, importers and retailers. The organization links its members to fair trade producer groups while acting as a clearinghouse for information on fair trade and providing resources and networking opportunities to its members.