What is fair trade?

 

Fair Trade is all about putting people first.  Its main aim is poverty alleviation.

 

Definitions

Fair Trade is an internationally-recognised approach to trading which aims to ensure that producers in poor countries get a fair deal. A fair deal includes a fair price for goods and services, decent working conditions, and a commitment from buyers so that there is reasonable security for the producers.

The Fairtrade Foundation, Oxfam and Traidcraft agree the following definition of fair trade: Fair Trade is an alternative approach to conventional international trade. It is a trading partnership which aims at sustainable development for excluded and disadvantaged producers. It seeks to do this by providing better trading conditions, by awareness raising and by campaigning.

According to the International Fair Trade Association (IFAT): 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, marginalized producers and workers, especially in the South.  

“Getting money is not all a man’s business; to cultivate kindness is a valuable part of business life”.
Samuel Johnson (1709-1784)

 

Types of Fair Trade Organisation 

Producers: The people making or growing the products such as coffee, sugar, handicrafts and so on.
Importers: The individual and companies who buy from the producers and sell either to the retailers, or often direct to the public.
Retailers: High street and online shops which sell the fair trade goods. Often the good are bought from the importers, though there can also be a direct link from producer to retailer.
Labelling Initiatives: Organisations such as the Fairtrade Labelling Organisation which monitors fair trade produce and offers a label to distinguish these goods from others. This has enabled fair trade goods to become more widely available in larger shops and supermarkets.

 

History of Fair Trade

The concept of fair trade began in the 1940’s with some shops and church groups in the US and Europe selling products made by Chinese refugees or poor Puerto Rican communities. Such initiatives were recognised as Alternative Trade Organisations. They were fairly disparate groups in many different countries, but the essence of what they were doing grew into the basis of fair trade as we know it today. It began with crafts, and moved on to include food (sugar initially) in the 1960’s. It was in the 80’s however that there began to be much more organisational approach to fair trade.  

EFTA (The European Fair Trade Association) was founded in 1987, gaining official status in 1990 as an association of importing companies in 9 European countries.

IFAT (The International Association for Fair Trade) began in 1989. They are a global network of hundreds of organizations aiming to “improve the livelihoods of disadvantaged people through trade, and providing a forum for the exchange of information and ideas”. IFAT launched a Fair Trade Organization Mark in January 2004. The FTO Mark is a quality mark. It means standards are being implemented regarding working conditions, wages, child labour and the environment. These standards are verified by self-assessment, mutual reviews and external verification. It demonstrates that an organisation's trading activity committed to continual improvement.

1989 was the first time anyone saw a guarantee of fair trade linked to a product. It was arranged by Max Havelaar of the Netherlands. Today there are labelling initiatives in 20 countries, mainly Europe and North America, and the products are mainly foodstuffs, including bananas, coffee, chocolate, flowers, honey, nuts, orange juice, rice, sugar and tea.  

In the UK the Fairtrade Foundation was set up by CAFOD, Christian Aid, New Consumer, Oxfam, Traidcraft and the World Development Movement.   In 1997 the umbrella organisation, Fairtrade Labelling Organisations (FLO) International, was set up to co-ordinate the national schemes and encourage efficient monitoring.  

The first World Fair Trade Day took place on May 4, 2002. It continues to be celebrated every second Saturday of May.

 

Fair Trade Travel 

There is currently no international organisation or association which coordinates fair trade within the travel and holiday industry. There are certainly organisations working towards this, and South Africa has its own Fair Trade in Tourism South Africa, but no worldwide standard has yet been set.  

In 1998, Tribes was the first travel company to use the term fair trade travel to explain the type of holidays offered. The term Fair Trade Travel is trademarked to Tribes Travel.  

Read more about Tribes & Fair Trade Travel