Fair Trade is a social movement that aims to promote more equitable and sustainable trading practices between producers in developing countries and buyers in the global North. The Fair Trade movement seeks to empower marginalized farmers and workers by offering them fair prices for their goods and by promoting fair labor practices and environmental sustainability.
Fair trade refers to an arrangement designed to assist producers in developing countries in establishing long-term and equitable trade relationships. The fair trade movement combines higher export prices with improved social and environmental standards. The movement focuses on commodities, or products that are typically exported from developing countries to developed countries but are also used in domestic markets (for example, Brazil, the United Kingdom, and Bangladesh), most notably handicrafts, coffee, cocoa, wine, sugar, fruit, flowers, and gold.
Fair Trade certification is a process by which a product is certified as having been produced in compliance with Fair Trade standards. This certification process includes an inspection of the producer organization’s operations, as well as an assessment of the social, economic, and environmental impact of the organization’s activities. Products that meet these standards can then be labeled and sold as “Fair Trade.”
Fair trade labeling organizations commonly use a definition of fair trade developed by FINE, an informal association of four international fair trade networks: Fairtrade Labelling Organizations International, World Fair Trade Organization (WFTO), Network of European Worldshops, and European Fair Trade Association (EFTA). According to this definition, fair trade is a trading partnership based on dialogue, transparency, and respect that seeks greater equity in international trade. Fair trade organizations, with consumer support, assist producers, raise awareness, and campaign for changes in the rules and practices of traditional international trade.
The Fair Trade movement has been successful in raising awareness about the challenges faced by farmers and workers in developing countries and in promoting more sustainable and equitable trading practices. However, it is not without its critics, who argue that Fair Trade certification can be expensive and difficult for small-scale producers to obtain, and that it may not always result in higher incomes for farmers and workers. Despite these criticisms, Fair Trade remains an important movement for promoting social and environmental justice in the global marketplace.
