Fair trade

The fair trade movement, also known as the trade justice movement, promotes international labour, environment and social standards for the production of traded goods and services. The movement focuses in particular on exports from the Third and Second Worlds to the First World. Standards may be voluntarily adhered to by importing firms, or enforced by governments through a combination of employment and commercial law. Proposed and practiced fair trade policies vary widely, ranging from the commonly adhered to prohibition of goods made using slave labour to minimum price support schemes such as those for coffee in the 1980s. Non-governmental organizations also play a role in promoting fair trade standards by serving as independent monitors of compliance with fairtrade labelling requirements.

Fairtrade labelling

Main article: Fairtrade labelling

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"Fair trade" or "Fairtrade" aims to guarantee not just fair prices, but also the principles of ethical purchasing. These principles include adherence to ILO agreements such as those banning child and slave labour, guaranteeing a safe workplace and the right to unionise, adherence to the United Nations charter of human rights, a fair price that will at least cover the cost of production and facilitate social development, and especially in agriculture, protection and conservation of the environment. Fair trade also aims for long-term business relationships that are transparent throughout the chain. For consumers, fair trade seeks to guarantee high quality. This is usually indicated to the consumer by a fair trade label or brand.

Related Topics:
Ethical purchasing - ILO - United Nations - Human rights

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Fair trade is also to be distinguished from safe trade which is more narrowly focused on preservation of biodiversity, biosafety, biosecurity and preventing serious global climate change. Although both are often advocated by worldwide green parties or global NGOs like Greenpeace and Rainforest Alliance, the two concerns are usually discussed separately at diplomatic conferences, and historically have resulted in entirely separate treaties. Supporters of safe trade see it as a foundation for fair trade, since ecological damage is also implicated in social problems.

Related Topics:
Safe trade - Biodiversity - Biosafety - Biosecurity - Global climate change - Worldwide green parties - NGO - Greenpeace - Rainforest Alliance

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Currently the most common definition of fair trade is that of the FINE group of organisations (Fairtrade Labelling Organizations International, International Fair Trade Association, Network of European Worldshops and European Fair Trade Association). The FINE definition does not require or imply offsetting penalties which have been one of the main sources of arguments against fair trade, and reads as follows:

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"Fair Trade is a trading partnership based on dialogue, transparency and respect, that 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 practice of conventional international trade."

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The labelling of fair trade products began with Mexican coffee farmers in 1988 alongside the Dutch development agency Solidaridad. Coffee imported to the Netherlands under the fair trade principles was labelled by Solidaridad under the name of Max Havelaar. This fair trade labelling system is today known as "Fairtrade" or "Fair Trade Certified", includes the Max Havelaar and TransFair labels, and is controlled by Fairtrade Labelling Organisations International (FLO).

Related Topics:
Coffee - Solidaridad - Netherlands - Max Havelaar

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The history of fairtrade movements spans the 20th century. It is fairtrade labelling - a relatively recent innovation - which has allowed its principles to be adopted by any company or organisation, and has brought the concept into the mainstream. Previous initiatives include "goodwill selling" (practised in the United States from the 1950s until the 1970s), the Worldshop movement (begun in 1959 by Oxfam), and alternative trading organisations (ATOs) that operate primarily in the U.S. and Europe from the 1960s until today.

Related Topics:
Goodwill selling - Worldshop - Oxfam - Alternative trading organisation

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