1. What is Fair Trade?
Fair Trade is a competitive business model that takes into account social values often
disregarded in conventional
business- one that builds equitable, long-term partnerships
between consumers in North America and producers in developing
regions. Fair Trade
businesses commit to:
• Paying a fair wage in the local context.
• Offering employees
opportunities for advancement.
• Providing equal opportunities for all people, particularly the most
disadvantaged.
• Engaging in environmentally sustainable practices.
• Being open to public accountability.
• Building
long-term trade relationships.
• Providing healthy and safe working conditions within the local context.
•
Providing financial and technical assistance to producers whenever possible.
2.
How did the Fair Trade movement come about?
In our globalized world, trade is one of the most powerful forces
linking our lives and a
source of unprecedented wealth. World trade could work as a powerful motor to reduce
poverty
and promote development but that potential is being lost. The rules that govern
international trade are unfairly biased
in favor of the rich. Millions of the world's poorest
people are being left behind.
The Fair Trade movement
has been one of the most powerful responses to the plight of
producers in developing countries who are being excluded
from the benefits of
international trade. Fair Trade gives consumers an opportunity to use their consumer
power
to tilt the balance in favor of the poor. Fair trade is not about charity. It is a holistic
approach to trade and development
that aims to alter the ways in which commerce is
conducted, so that trade can empower the poorest of the poor. Fair Trade
Organizations
seek to create sustainable and positive change in developing and developed countries.
3. How do I know that a product is Fair Trade?
Some Fair Trade products,
like coffee and chocolate, are Fair Trade Certified ™ and
carry a label or “seal.” For other products,
like handcrafts, there is not a certification
system. The following concepts are helpful in understanding the difference
between
certified and non-certified products. It is important to know that the goal of Fair Trade is
to empower
low-income artisans and farmers to better their lives. This mission drives
Fair Trade. Although a label can be an important
indicator of this aspiration for farmers,
looking beyond a label leads to a vibrant world of Fair Trade artisans and
craftspeople.
The TransFair label is currently only for food products. The Fair Trade
Certified ™ logo is
an independent certification that adheres to monitoring
criteria and standards set out by the Fairtrade Labeling Organization.
Since
1997, FLO has established common principles, procedures and specific
certification requirements for Fair Trade.
Currently FLO only certifies
commodities. The reasons are numerous and complex, but in general relate to the fact that
“The very variety of handcrafted items are their strength…unique handcrafted items are
not subject to
direct comparisons with regard to price and performance.” (Fair Trade
Yearbook, p. 159)
Fair traders of handcrafts
work directly with artisans to guarantee Fair Trade
standards Fair Trade Organizations (FTO’s) work with low-income
artisans to
market their products and build their businesses. FTOs, many of whom are
members of organizations like
the Fair Trade Federation (FTF) or the
International Fair Trade Association (IFAT), adhere to Fair Trade criteria including
workers’ pay, environmental practices, and good working conditions. When you
purchase home furnishings, clothing,
or crafts from FTOs, particularly those reviewed by
national and international associations like FTF and IFAT, you can
be certain that Fair
Trade principles were respected. Consumers also know they have purchased a unique
item representing
not only the talent of the artisan–often a woman from a developing
country–but also the culture and traditions
of the source country.
4. What is the difference between Fair Trade and Free Trade?
Free trade is a market model in which trade in goods and services between or within
countries flow unhindered by government-imposed
restrictions. Fair Trade is an
organized social movement and market-based approach to alleviating global poverty and
promoting sustainability. The Fair Trade movement promotes the payment of a fair price
as well as social and environmental
standards in areas related to the production of a wide
variety of goods.
Fair Trade is not an attempt to erase all
principles of Free Trade, or to reverse the global
nature of the business environment today. A common misconception is
that Fair Trade is
the opposite of Free Trade, and the two are often confused. According to Paul Rice of
TransFair
USA, “Fair Trade makes globalization and ‘free trade’ work for the poor”
(TransFair USA, 2005
Shareholder Report).
5. What type of Fair Trade products can I buy in the
United States?
Luckily there is now a diverse and high quality range of Fair Trade products available
in
the US. These include a large number of Fair Trade craft products–decorative home
accessories, jewelry,
textiles, etc. Fairly traded coffee, tea, and chocolate are also widely
available in shops and supermarkets across the
country. We are starting to see an influx in
fair trade produce, most notably bananas. In addition items, such as Fair
Trade sports
balls and apparel, are also becoming available.
6. Do Fair
Trade products cost more?
Generally, Fair Trade items do not cost more than other goods, because Fair
Trade
organizations work directly with producers - cutting out anywhere from 3 - 10
middlemen who raise the price
along the way in conventional trading. The cost to
consumers typically remains the same while a higher percentage of
the price is returned
to the artisans and farmers who made the product.
7.
How can I access more information about Fair Trade?
If you are interested in finding out more information
on Fair Trade check out ftrn.org or
fairtradetownsusa.org which are both packed full of information. There are also a
large
number of Fair Trade companies and organizations operating within the US, all of which
can be found on the
internet.
8. How can individuals support Fair Trade?
Individuals
can support fair trade by educating their communities about the Fair Trade
options available, by bringing fairly traded
items into their home, office, faith
community, school, or other group, and by asking for products from fair trade
organizations in their local stores.
