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Concept
Fair trade
Summary
Fair trade is a term for an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. The fair trade movement combines the payment of higher prices to exporters with improved social and environmental standards. The movement focuses in particular on commodities, or products that are typically exported from developing countries to developed countries but is also used in domestic markets (e.g., Brazil, the United Kingdom and Bangladesh), most notably for handicrafts, coffee, cocoa, wine, sugar, fruit, flowers and gold.
Fair trade labelling 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). Fair trade, by this definition, is a trading partnership based on dialogue, transparency and respect, that seeks greater equity in international trade. Fair trade organizations, backed by consumers, support producers, raise awareness and campaign for changes in the rules and practice of conventional international trade.
There are several recognized fair trade certifiers, including Fairtrade International (formerly called FLO, Fairtrade Labelling Organizations International), IMO, Make Trade Fair, and Eco-Social. Additionally, Fair Trade USA, formerly a licensing agency for the Fairtrade International label, broke from the system and implemented its own fair trade labelling scheme, which expanded the scope of fair trade to include independent smallholders and estates for all crops. In 2008, Fairtrade International certified approximately (€3.4B) of products.
On 6 June 2008, Wales became the world's first ; followed by Scotland in February 2013. The fair trade movement is popular in the UK, where there are over 500 , 118 universities, over 6,000 churches, and over 4,000 UK schools registered in the . In 2011, more than 1.
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