About Fair Trade

What is Fair Trade?

Fair Trade is an alternative way of doing business - one that builds equitable, long-term partnerships between consumers and producers. There are many definitions of precisely what Fair Trade is, but one that is often agreed upon is the FINE definition:

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.

A Bit of History

Follow this link to get a brief history of how Fair Trade got started.

Fair Trade Principles and Criteria

Each certifying body and association have their own list of principles or certification criteria that specify what to them embodies Fair Trade.  They all approach each other, though there are small variations.  If you are curious to find out more, you can take a look at the links below for the principles assigned by each organization.

FLO Standards Principles

IFAT Fair Trade principles

Fair Trade Certifying Bodies

Fair trade certification can apply to either a specific product, or a company.

	FLO FLO (Fair trade Labelling Organisation) certifies products FLO is an umbrella organization comprised of 20 Labelling Initiaves, including Transfair USA and Transfair Canada.  The labels controlled and distributed by these labelling initiatives are the only logos that consumers will find on a product packaging.
	IFAT  IFAT (International Fair Trade  Association)  certifies companies.  The FTO (Fair Trade Organisation) mark can be displayed in a store or on documentation, but not on a product itself, as IFAT certifies companies.

To the consumer, what is the difference between buying a product that was certified by FLO (Transfair USA), or a product made by a company certified by IFAT?

IFAT identifies the company is a member committed to providing fair wages and good employment opportunities to economically disadvantaged artisans and farmers worldwide. A Transfair label certifies products — not companies. The Transfair logo simply indicates that the packaged product was purchased from the producer under Fair Trade terms. It does not certify the company’s commitment to Fair Trade principles nor does it indicate that a certain minimum percentage of the company’s products are Fair Trade certified. Many companies use a few token Fair Trade items as a marketing tool to give the impression of being a Fair Trade company. So, we encourage supporters who are interested in supporting Fair Traders to "Look beyond the Label".

See this diagram for a visual  illustration of these two certification schemes.

Fair Trade Associations

The Fair Trade Federation is a trade association of Fair Trade companies based primarily in North America.  Membership in FTF can be an additional indicator to a consumer that a company is fully committed to Fair Trade.  However, it is important to note that they are not a certifying body.  Visit their website to learn more about this association.

FINE was created in 1998 and is an informal association of the four main Fair Trade networks: FLO, IFAT, NEWS, and EFTA. The aim of FINE is to enable these networks and their members to cooperate on: 1)the development of harmonised core standards and guidelines for Fair Trade, 2) harmonization, and increase in the quality and efficiency of Fair Trade monitoring systems, 3) advocacy and campaigning work, and 4) harmonization of their information and communication systems

Take a look as well at this Consumer Reports overview of different certification schemes..They look at different organic certifiers, alternative certification like Rainforest Alliance, as well as Fair Trade,