Fair Trade

What is Fair Trade? 

Fair trade exists to ensure that a fair proportion of the retail price of a product is returned to the person who created the commodity in the first place.

It seeks to provide benefits to artisans and producers around the world, although is specifically focused on people in third world countries, who have traditionally been exploited through trade agreements that seek to maximize retailers and intermediaries profits at the expense of the artisans and producers.

Fair Trade reverses the objectives of traditional trade practices and promotes fair wages that help the development and economic independence of the artisan. Artisans that work with fair trade organizations receive up to 1/4 to 1/3 more than those who are not working in fair trade.

In addition to paying fair wages fair trade certified organizations are required to meet the following guidelines in their trade practices. They must:

• Create opportunities for economically disadvantaged producers
• Develop producers' independence
• Value and reward the work of women
• Create a safe and healthy working environment
• Respect the UN Convention on the Rights of the Child, and ensure that any child participating in the production of fair trade goods does not adversely affect the needs of children
• Ensure environmentally sound practices and methods of production
• Engage in trade based on the concern for the social, economic and environmental well-being of small producers that does not seek to maximize profit at their expense

Advocate for Fair Trade

The Fair Trade movement is made up of organizations which work with and help to support producers and artisans and is ultimately maintained by consumers who commit to purchasing fair trade products.

Since the Fair Trade movement began in the 1940's, participation and awareness has been growing each year. In 2006 consumers worldwide spent more than 1.6 billion Euros on Fairtrade Certified Products, which was a 41% increase over 2005. Europe represents the biggest and fastest growing market, consuming approximately 60-70% of all fairly traded goods. Fair trade only represents less than 0.1% of all goods traded internationally, according to the Fair Trade Federation.

It is important to recognize the impact that fair trade has on small producers and artisans throughout the world, but it is still small and needs lots of support. The Fair Trade movement is giving many individuals and families sufficient resources to be able to lift themselves out of poverty and support themselves for the first time in their lives and it needs your participation.