Coffee Fact Sheet

Textiles Fact Sheet

What is Fair Trade?

Put simply, Fair Trade is a partnership between producers (the people who grow and make the products we use every day) and consumers - that ensures a fair deal for producers.
In normal international trade the first priority is profit – not for producers, but for the companies and traders who form links in the long supply chain from producer to consumer.
Under this unfair trading system, as consumers demand lower prices and companies strive for higher profits, the majority world producers at the beginning of the supply chain pay the price.

A fair deal provides a living wage for producers – enough to feed, clothe, house, school and provide adequate healthcare for themselves and their families.
A fair deal takes into account the real costs involved in production – for example, the price of raw materials for craftwork or farming supplies for growers.
A fair deal ensures producers work in a safe, healthy and non-exploitative environment.

For many producers in the majority world, even such basic needs are not covered under normal trade conditions. Fair Trade partnerships aim to provide much more than this by putting the producer first.

Definition and Goals

A working group from four major Fair Trade organisations (FINE*) has come up with the following definition and goals for Fair Trade:

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, marginalised producers and workers – especially in the South.

Fair Trade organisations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practices of conventional international trade.

Goals:

1. To improve the livelihoods and well being of producers by improving market access, strengthening producer organisations, paying a better price and providing continuity in the trading relationship.
2. To promote development opportunities for disadvantaged producers, especially women and indigenous people and to protect children from exploitation in the production process.
3. To raise awareness among consumers of the negative effects on producers of international trade so that they exercise their purchasing power positively.
4. To set an example of partnership in trade through dialogue, transparency and respect. 
5. To campaign for changes in the rules and practice of conventional international trade.
6. To protect human rights by promoting social justice, sound environmental practices and economic security. 

Information quoted from British Association for Fair Trade Shops

*FINE:

FAIR LABELLING ORGANISATIONS INTERNATIONAL (FLO)
INTERNATIONAL FEDERATION FOR ALTERNATIVE TRADE (IFAT)
NETWORK OF EUROPEAN WORLD SHOPS (NEWS!)
EUROPEAN FAIR TRADE ASSOCIATION

Fair Trade Facts

• An estimated 5 million people around the world (producers and their dependants) benefit from Fair Trade.

•  Over 500 producer organisations in 58 developing countries are registered as Fair Trade.

•  Africa is the fastest growing Fair Trade region with approximately 124 producer organisations in 20 countries certified to Fair Trade standards.

•  Europe is the biggest market for Fair Trade products, accounting for 60-70% of global Fair Trade sales.

•  Fair Trade still represents less than1% of all international trade.

Resources and Links

International Federation For Alternative Trade

Make Trade Fair - Oxfam International

Fair Trade Resource Network

Global Exchange

One Village

Responsible Shopper

New Internationalist

Fair Trade Certification

Fair Trade labelling began in the Netherlands, where coffee was the first labelled product in 1988. Other national Fair Trade labellers soon followed. At present, there are 20 Fair Trade labelling Initiatives under one umbrella organization - Fairtrade Labelling Organisations International (FLO), based in Germany.

The four main aspects for certification are:

The points of reference for FLO Certification are the International Fair Trade Standards. There are two sets of generic producer standards - one for small farmers and one for workers on plantations and in factories. The first set applies to smallholders organised in cooperatives or other organisations with a democratic, participative structure.

The second set of standards applies to organised workers - whose employers must  pay decent wages, guarantee the right to join trade unions and provide good housing where relevant. On plantations and in factories, minimum health and safety as well as environmental standards must be complied with, and no child or forced labour may occur.

Trading standards stipulate that traders have to:

As Fair Trade is also about development, the generic standards distinguish between minimum requirements, which producers must meet to be certified Fair Trade, and progress requirements that encourage producer organisations to continuously improve working conditions and product quality, to increase the environmental sustainability of their activities and to invest in the development of the organisations and their producers/workers.

To ensure that producer groups comply with Fair Trade standards, FLO works with a network of independent inspectors that regularly visit all producer organisations. To monitor traders’ and retailers’ compliance with Fair Trade conditions, a specially developed trade auditing system checks that every Fair Trade labelled product sold to a consumer has indeed been produced by a certified producer organisation which has been paid the Fair Trade price.

Information quoted from:

Fairtrade Labelling Organisations International and
Fair Trade Toronto