Fair trade is an organized social movement which promotes standards for international labor, environmentalism, and social policy in areas related to production of Fairtrade labeled and unlabelled goods. The movement focuses in particular on exports from developing countries to developed countries. Fair trade's strategic intent is to deliberately work with marginalised producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency. It also aims at empowering them to become stakeholders in their own organizations and actively play a wider role in the global arena to achieve greater equity in international trade. Fair trade proponents include a wide array of international religious, development aid, social and environmental organizations such as Oxfam, Amnesty International, and Caritas International. As most developmental efforts, fair trade has proved itself controversial and has drawn criticism from both ends of the political spectrum. Some economists and conservative think tanks see fair trade as a type of subsidy that impedes growth. Segments of the left criticize fair trade for not challenging enough the current trading system. In 2005, fair trade certified sales were estimated at €1.1 billion worldwide, a 37 % year-to-year increase.[1] While this represents less than one hundredth of a percentage point of world trade in physical merchandise,[2] fair trade products generally account for 0.5-5% of all sales in their product categories in Europe and North America.[3] In October 2006, over 1.5 million disadvantaged producers worldwide were directly benefiting from fair trade while an additional 5 million benefited from fair trade funded infrastructure and community development projects.[ Definition of fair trade: The most widely recognized definition of fair trade 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):[4] 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.
Key fair trade principles: Fair trade advocates generally support the following principles and practices in trading relationships:[5] - 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.
General structure of the movement: Most fair trade import organizations are members or certified by one or several national or international federations. These federations coordinate, promote and facilitate the work of fair trade organizations. The following are the largest and most influential: - 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 European Fair Trade Association (EFTA), created in 1990, is a network of European fair trade organisations which import products from some 400 economically disadvantaged producer groups in Africa, Asia and Latin America. EFTA's goal is to promote fair trade and to make fair trade importing more efficient and effective. The organization also published yearly various publications on the evolution of the fair trade market. EFTA currently has eleven members in nine different countries.
In 1998, these four federations created together FINE, an informal association whose goal is to harmonize fair trade standards and guidelines, increase the quality and efficiency of fair trade monitoring systems and advocate fair trade politically. - 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.
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