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Encyclopedia > Fair trade
Certified Fair trade quinoa producers in Ecuador
Certified Fair trade quinoa producers in Ecuador

Fair trade is an organized social movement and market-based approach to alleviating global poverty and promoting sustainability. The movement advocates the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of goods. It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, and so forth. Image File history File links Download high-resolution version (1000x1175, 191 KB) This logo (International Fairtrade Certification Mark) is unique and could not be replaced with a free image. ... International Fairtrade Certification Mark Fairtrade certification (usually simply Fairtrade or Fair Trade Certifiedâ„¢ in the United States) is a product certification system designed to allow consumers to identify products which meet agreed environmental, labour and developmental standards. ... Fair trade has a variety of meanings: Fair trade is a term used by social justice, peace movement, ecology movement, and green movement groups, to contrast with unfair international trade practices, and sometimes, to contrast with free trade (unhindered trade) as promoted by the World Trade Organization and NAFTA. Fairtrade... Image File history File linksMetadata FairtradeQuinoa. ... Image File history File linksMetadata FairtradeQuinoa. ... Binomial name Willd. ... American Civil Rights Movement is one of the most famous social movements of the 20th century. ... Good. ... Handicraft, also known as craftwork or simply craft, is a type of work where useful and decorative devices are made completely by hand or using only simple tools. ... For other uses, see Coffee (disambiguation). ... For other uses, see Cocoa (disambiguation). ... This article is about sugar as food and as an important and widely-traded commodity. ... For other uses, see Tea (disambiguation). ... Bananas may refer to: Bananas (film), a 1971 Woody Allen film Bananas (album), a 2003 Deep Purple album Bananas (catamorphism), a generalization of folds Bananas, one of Donkey and Dragons hybrid Children. ... For other uses, see Honey (disambiguation). ... For other uses, see Cotton (disambiguation). ... For other uses, see Wine (disambiguation). ...


Fair trade's strategic intent is to deliberately work with marginalised producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency. It also aims at empowering them to become stakeholders in their own organizations and actively play a wider role in the global arena to achieve greater equity in international trade. International trade is the exchange of goods and services across international boundaries or territories. ...


Fair trade proponents include a wide array of international religious, development aid, social and environmental organizations such as Oxfam, Amnesty International, and Caritas International. Oxfam International logo Oxfam International is a confederation of 13 organizations working with over 3000 partners in more than 100 countries to find lasting solutions to poverty and injustice. ... Wikimedia Commons has media related to: Amnesty international Amnesty International (commonly known as Amnesty or AI) is an international non-governmental organization which defines its mission as to undertake research and action focused on preventing and ending grave abuses of the rights to physical and mental integrity, freedom of conscience... The Caritas House in Caine Road, Mid-levels, Hong Kong Island, Hong Kong. ...


Like most developmental efforts, fair trade has proven itself controversial and has drawn criticism from both ends of the political spectrum. Some economists and conservative think tanks see fair trade as a type of subsidy. Segments of the left criticize fair trade for not adequately challenging the current trading system. This article is about International Development. ... Political parties Part of the Politics series Politics Portal This box:      A political spectrum is a way of visualizing different political positions. ... This article is about the institution. ... In economics, a subsidy is generally a monetary grant given by a government to lower the price faced by producers or consumers of a good, generally because it is considered to be in the public interest. ... Left wing redirects here. ...


In 2006, Fair trade certified sales amounted to approximately $2.3 billion worldwide, a 41% year-to-year increase.[1] While this represents less than one hundredth of a percentage point of world trade in physical merchandise,[2] fair trade products generally account for 0.5-5% of all sales in their product categories in Europe and North America.[3] In October 2006, over 1.5 million disadvantaged producers worldwide were directly benefiting from fair trade while an additional 5 million benefited from fair trade funded infrastructure and community development projects.[4] International Fairtrade Certification Mark Fairtrade certification (usually simply Fairtrade or Fair Trade Certifiedâ„¢ in the United States) is a product certification system designed to allow consumers to identify products which meet agreed environmental, labour and developmental standards. ...

Contents

Definition of fair trade

In 2001, a common definition of fair trade was developed by FINE, an informal association of four international fair trade networks (Fairtrade Labelling Organizations International, International Fair Trade Association, Network of European Worldshops and European Fair Trade Association):[5] FINE was created in 1998 and is an informal association of the four main Fair Trade networks: F Fairtrade Labelling Organizations International (FLO) I International Fair Trade Association (IFAT) N Network of European Worldshops (NEWS!) and E European Fair Trade Association (EFTA) // The aim of FINE is to enable these... For other uses of fair trade, see fair trade. ... The International Fair Trade Association (IFAT) consists of a global network of Fair Trade Organizations (FTOs). ... The Network of European Worldshops (NEWS!) was established in 1994 and coordinates the cooperation between Worldshops in Europe. ... The European Fair Trade Association is a Dutch association established in 1990. ...

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.

Key fair trade principles

Workers sorting and pulping coffee beans at a fair trade cooperative in Guatemala
Workers sorting and pulping coffee beans at a fair trade cooperative in Guatemala

Fair trade advocates generally support the following principles and practices in trading relationships:[6] Image File history File links Size of this preview: 800 × 600 pixel Image in higher resolution (1024 × 768 pixel, file size: 510 KB, MIME type: image/jpeg) Coffee beans being sorted and pulped by workers and volunteers, on an organic, fair-trade, shade-grown coffee plantation in Guatemala. ... Image File history File links Size of this preview: 800 × 600 pixel Image in higher resolution (1024 × 768 pixel, file size: 510 KB, MIME type: image/jpeg) Coffee beans being sorted and pulped by workers and volunteers, on an organic, fair-trade, shade-grown coffee plantation in Guatemala. ... For other uses, see Coffee (disambiguation). ...

Creating opportunities for economically disadvantaged producers-
Fair trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.
Transparency and accountability-
Fair trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.
Capacity building-
Fair trade is a means to develop producers’ independence. Fair trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.
Payment of a fair price-
A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fairtraders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing. They also provide money for free primary schools and health care, which really help the people who are not earning enough to send their children to school.
Gender equality-
Fair trade means that the work of men and women is properly valued and rewarded. Each person is always paid for their contribution to the production process and are empowered in their organizations, regardless of gender.
Safe working conditions-
Fair trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.
Environmental protection-
Fair trade actively encourages better environmental practices and the application of responsible methods of production. Fair trade certifiers for example strictly prohibit the use of genetically modified organisms (GMOs), promote integrated farm management systems that improve soil fertility, and limit the use of harmful agrochemicals in favor of environmentally sustainable farming methods that protect farmers' health and preserve valuable ecosystems for future generations.

Sustainable development is a socio-ecological process characterized by the fulfilment of human needs while maintaining the quality of the natural environment indefinitely. ... In the physical sciences, specifically in optics, a transparent physical object is one that can be seen through. ... Graffiti in Madrid promoting equality, reads todos somos iguales, or we are all equal. Equalism is a name often given to forms of egalitarianism (advocacy of equality) concerned with issues of gender or race. ... The United Nations Convention on the Rights of the Child is an international convention setting out the civil, political, economic, social and cultural rights of children. ... Environmental movement is a term often used for any social or political movement directed towards the preservation, restoration, or enhancement of the natural environment. ...

General structure of the movement

Most fair trade import organizations are members or certified by one or several national or international federations. These federations coordinate, promote and facilitate the work of fair trade organizations. The following are the largest and most influential:

  • The Fairtrade Labelling Organizations International (FLO), created in 1997, is an association of 3 producer networks and 20 national labelling initiatives that promote and market the Fairtrade Certification Mark in their countries. The FLO labelling system is the largest and most widely recognized standard setting and certification body for labelled Fairtrade. It regularly inspects and certifies producer organizations in more than 50 countries in Africa, Asia and Latin America, encompassing approximately one million families of farmers and workers.
  • The International Fair Trade Association (IFTA) is a global association created in 1989 of fairtrade producer cooperatives and associations, export marketing companies, importers, retailers, national and regional fair trade networks and fair trade support organizations. In 2004 IFAT launched the FTO Mark which identifies registered Fair Trade Organizations (as opposed to the FLO system, which labels products). IFAT has nearly 300 member organizations in over 60 countries.
  • The European Fair Trade Association (EFTA), created in 1990, is a network of European fair trade organisations which import products from some 400 economically disadvantaged producer groups in Africa, Asia and Latin America. EFTA's goal is to promote fair trade and to make fair trade importing more efficient and effective. The organization also published yearly various publications on the evolution of the fair trade market. EFTA currently has eleven members in nine different countries.

In 1998, these four federations created together FINE, an informal association whose goal is to harmonize fair trade standards and guidelines, increase the quality and efficiency of fair trade monitoring systems and advocate fair trade politically. For other uses of fair trade, see fair trade. ... International Fairtrade Certification Mark Fairtrade labelling (usually simply Fairtrade or Fair Trade Certified in the United States) is a product certification system designed to allow consumers to identify products (especially agricultural products such as coffee) which meet agreed standards. ... A world map showing the continent of Africa Africa is the worlds second-largest and second most-populous continent, after Asia. ... For other uses, see Asia (disambiguation). ... Latin America consists of the countries of South America and some of North America (including Central America and some the islands of the Caribbean) whose inhabitants mostly speak Romance languages, although Native American languages are also spoken. ... The International Fair Trade Association (IFAT) consists of a global network of Fair Trade Organizations (FTOs). ... Flo was an American television sitcom series which ran from 1980 to 1981 on CBS. The series was a spinoff for Polly Holliday, whose portrayal of the sassy and street-smart waitress Florence Jean Castleberry (Flo) on Alice struck a chord with viewers. ... The International Fair Trade Association (IFAT) consists of a global network of Fair Trade Organizations (FTOs). ... The Network of European Worldshops (NEWS!) was established in 1994 and coordinates the cooperation between Worldshops in Europe. ... Worldshops, world shops or Fair Trade Shops are retail outlets that practice the principles of fair trade. ... For other uses, see Europe (disambiguation). ... The European Fair Trade Association is a Dutch association established in 1990. ... FINE was created in 1998 and is an informal association of the four main Fair Trade networks: F Fairtrade Labelling Organizations International (FLO) I International Fair Trade Association (IFAT) N Network of European Worldshops (NEWS!) and E European Fair Trade Association (EFTA) // The aim of FINE is to enable these...

  • The Fair Trade Federation (FTF), created in 1994, is an association of Canadian and American fair trade wholesalers, importers and retailers. The organization links its members to fair trade producer groups while acting as a clearinghouse for information on fair trade and providing resources and networking opportunities to its members.
  • The Fairtrade Action Network, created in 2007, is an international fair trade volunteer web-based network. The association links volunteers from a dozen of European and North American countries, actively supports Fairtrade Town initiatives and encourages grassroots networking at the international level.

Student groups have also been increasingly active in the past years promoting fair trade products both on their campuses and their communities. Although hundreds of independent student organizations are active worldwide, most groups in North America are either affiliated with United Students for Fair Trade (USA) or the Canadian Student Fair Trade Network (Canada). The Fair Trade Federation is an association of Canadian and American fair trade wholesalers, importers and retailers. ... Fairtrade Town is a status awarded by the Fairtrade Foundation in the United Kingdom and Channel Islands, describing an area which is committed to the promotion of Fairtrade-labelled goods. ...


History

Main article: History of fair trade

The first attempts to commercialize fair trade goods in Northern markets were initiated in the 1940s and 1950s by religious groups and various politically oriented non-governmental organizations (NGOs). Ten Thousand Villages, an NGO within the Mennonite Central Committee (MCC) and SERRV International were the first, in 1946 and 1949 respectively, to develop fair trade supply chains in developing countries.[7] The products, almost exclusively handicrafts ranging from jute goods to cross-stitch work, were mostly sold in churches or fairs. The goods themselves had often no other function than to indicate that a donation had been made.[8] The fair trade movement as we know today has undergone several important changes since its early days following World War II. Fair trade, first seen as a form of charity advocated by religious organizations, has radically changed in structure, philosophy and approach: the past fifty years have witnessed massive changes... A non-governmental organization (NGO) is an organization which is not a part of a government. ... Ten Thousand Villages is a program of the Mennonite Central Committee (MCC) started in 1946 that pioneered the concept of fair trade by buying crafts directly from artisans in the developing world and paying a living wage. ... Mennonite Central Committee logo. ... SERRV International is a 501(c)3 nonprofit, alternative trading organization operating in the United States and in Africa, Asia and Latin America. ... Handicraft, also known as craftwork or simply craft, is a type of work where useful and decorative devices are made completely by hand or using only simple tools. ... The word Jute is also used in reference to the Germanic people, the Jutes. ... A sample cross-stitch of a Welsh dresser Cross-stitch is a popular form of counted-thread embroidery in which X-shaped stitches are used to form a picture. ...


Solidarity trade

Fair Trade goods sold in Worldshops
Fair Trade goods sold in Worldshops

The current fair trade movement was shaped in Europe in the 1960s. Fair trade during that period was often seen as a political gesture against neo-imperialism: radical student movements began targeting multinational corporations and concerns that traditional business models were fundamentally flawed started to emerge. The slogan at the time, “Trade not Aid”, gained international recognition in 1968 when it was adopted by the UNCTAD (United Nations Conference on Trade and Development) to put the emphasis on the establishment of fair trade relations with the developing world.[9] Download high resolution version (1938x1311, 293 KB) Wikipedia does not have an article with this exact name. ... Download high resolution version (1938x1311, 293 KB) Wikipedia does not have an article with this exact name. ... The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body, UNCTAD is the principal organ of the United Nations General Assembly dealing with trade, investment and development issues. ... The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body, UNCTAD is the principal organ of the United Nations General Assembly dealing with trade, investment and development issues. ...


The year 1965 saw the creation of the first Alternative Trading Organization (ATO): that year, British NGO Oxfam launched "Helping-by-Selling", a program which sold imported handicrafts in Oxfam stores in the UK and from mail-order catalogues.[10] An alternative trading organization (ATO) is a non-governmental organization (NGO) explicitly committed to realigning exploitative global trading structures, particularly those involving partners in developing countries. ... NGO is an abbreviation or code for: Non-governmental organization Nagoya Airport (IATA code) This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... Oxfam International logo Oxfam International is a confederation of 13 organizations working with over 3000 partners in more than 100 countries to find lasting solutions to poverty and injustice. ...


In 1969, the first Worldshop opened its doors in the Netherlands. The initiative aimed at bringing the principles of fair trade to the retail sector by selling almost exclusively goods produced under fair trade terms in “underdeveloped regions”. The first shop was run by volunteers and was so successful that dozens of similar shops soon went into business in the Benelux countries, Germany and in other Western European countries. Worldshops, world shops or Fair Trade Shops are retail outlets that practice the principles of fair trade. ... Location of Benelux in Europe Official languages Dutch and French Membership  Belgium  Netherlands  Luxembourg Website http://www. ...


Throughout the 1960s and 1970s, important segments of the fair trade movement worked to find markets for products from countries that were excluded from the mainstream trading channels for political reasons. Thousands of volunteers sold coffee from Angola and Nicaragua in Worldshops, in the back of churches, from their homes and from stands in public places, using the products as a vehicle to deliver their message: give disadvantaged producers in developing countries a fair chance on the world’s market, and you support their self-determined sustainable development. The alternative trade movement blossomed, if not in sales, then at least in terms of dozens of ATOs being established on both sides of the Atlantic, of scores of Worldshops being set up, and of well-organized actions and campaigns attacking exploitation and foreign domination, and promoting the ideals of Nelson Mandela, Julius Nyerere and the Nicaraguan Sandinistas: the right to independence and self-determination, to equitable access to the world’s markets and consumers. An alternative trading organization (ATO) is a non-governmental organization (NGO) explicitly committed to realigning exploitative global trading structures, particularly those involving partners in developing countries. ... For other people named Mandela, or other uses, see Mandela. ... Julius Kambarage Nyerere (April 13, 1922 - October 14, 1999) was President of Tanzania, and previously Tanganyika, from the countrys founding in 1964 until his retirement in 1985. ... Sandinista! is also the name of a popular music album by The Clash. ...


Handcrafts vs. agricultural goods

In the early 1980s, Alternative Trading Organizations faced a major challenge: the novelty of some fair trade products started wearing off, demand reached a plateau and some handicrafts began to look “tired and old fashioned” in the marketplace.[11]The decline of segments of the handicrafts market forced fair trade supporters to rethink their business model and their goals. Moreover, fair trade supporters during this period became increasingly worried by the impact of the fall of agricultural commodity prices on poor producers. Many then believed it was the movement's responsibility to address the issue and to find innovative remedies to react to the ongoing crisis in the industry. This article does not cite any references or sources. ...


In the subsequent years, fair trade agricultural commodities played an important role in the growth of many ATOs: successful on the market, they offered a much-needed, renewable source of income for producers and provided Alternative Trading Organizations a perfect complement to the handicrafts market. The first fair trade agricultural products were tea and coffee, quickly followed by dried fruits, cocoa, sugar, fruit juices, rice, spices and nuts. While in 1992, a sales value ratio of 80 % handcrafts to 20 % agricultural goods was the norm, in 2002 handcrafts amounted to 25.4 % of fair trade sales while commodity food lines were up at 69.4 %.[12] Wikipedia does not yet have an article with this exact name. ... For other uses, see Tea (disambiguation). ... For other uses, see Coffee (disambiguation). ... Popular Japanese fashion magazine throughout the 1990s; the photography of which has recently been reissued in two collections from Phaidon press. ... Juice is the liquid naturally contained in plants. ... For other uses, see Rice (disambiguation). ... External links Wikibooks Cookbook has more about this subject: Spice Food Bacteria-Spice Survey Shows Why Some Cultures Like It Hot Citat: ...Garlic, onion, allspice and oregano, for example, were found to be the best all-around bacteria killers (they kill everything). ... For other uses, see Nut (disambiguation). ...


Rise of labelling initiatives

Early Fairtrade Certifications Marks
Early Fairtrade Certifications Marks

Sales of fair trade products only really took off with the arrival of the first Fairtrade labelling initiatives. Although buoyed by ever growing sales, fair trade had been generally contained to relatively small Worldshops scattered across Europe and to a lesser extent, North America. Some felt that these shops were too disconnected from the rhythm and the lifestyle of contemporary developed societies. The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers. The only way to increase sale opportunities was to start offering fair trade products where consumers normally shop, in large distribution channels.[13] The problem was to find a way to expand distribution without compromising consumer trust in fair trade products and in their origins. Image File history File links Oldftlogos2. ... Image File history File links Oldftlogos2. ... International Fairtrade Certification Mark Fairtrade labelling (usually simply Fairtrade or Fair Trade Certified in the United States) is a product certification system designed to allow consumers to identify products (especially agricultural products such as coffee) which meet agreed standards. ... North American redirects here. ...


A solution was found in 1988, when the first Fairtrade labelling initiative, Max Havelaar, was created in the Netherlands under the initiative of Nico Roozen, Frans Van Der Hoff and Dutch development NGO Solidaridad. The independent certification allowed the goods to be sold outside the Worldshops and into the mainstream, reaching a larger consumer segment and boosting fair trade sales significantly. The labeling initiative also allowed customers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the producers at the end of the supply chain.[14] International Fairtrade Certification Mark Fairtrade certification (usually simply Fairtrade or Fair Trade Certifiedâ„¢ in the United States) is a product certification system designed to allow consumers to identify products which meet agreed environmental, labour and developmental standards. ... Stichting Max Havelaar (or the Max Havelaar Foundation in English) is the Dutch member of Fairtrade Labelling Organizations International (FLO), which unites 20 national Fairtrade initiatives across Europe, Japan, North America, Australia and New Zealand. ... Nico Roozen is a Dutch economist who, in collaboration with Frans Van Der Hoff and ecumenical development agency Solidaridad, launched Max Havelaar, the first Fairtrade Certification Mark in 1988. ... Frans Van Der Hoff (born in 1939) is a Dutch missionary who, in collaboration with Nico Roozen and ecumenical development agency Solidaridad, launched Max Havelaar, the first Fairtrade label in 1988. ... For other uses of the name Solidaridad or Solidarity, see Solidarity (disambiguation). ... International Fairtrade Certification Mark Fairtrade labelling (usually simply Fairtrade or Fair Trade Certified in the United States) is a product certification system designed to allow consumers to identify products (especially agricultural products such as coffee) which meet agreed standards. ... A supply chain, logistics network, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. ...


The concept caught on: in the ensuing years, similar non-profit Fairtrade labelling organizations were set up in other European countries and North America. In 1997, a process of convergence among labelling organizations – or “LIs” (for “Labelling Initiatives”) – led to the creation of Fairtrade Labelling Organizations International. FLO is an umbrella organization whose mission is to set the Fairtrade standards, support, inspect and certify disadvantaged producers and harmonize the Fairtrade message across the movement. For other uses of fair trade, see fair trade. ... For other uses of fair trade, see fair trade. ...


In 2002, FLO launched for the first time an International Fairtrade Certification Mark. The goals of the launch were to improve the visibility of the Mark on supermarket shelves, facilitate cross border trade and simplify procedures for both producers and importers. At present, the certification mark is used in over 50 countries and on dozens of different products, based on FLO’s certification for coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, honey, fruit juices, nuts, fresh fruit, quinoa, herbs and spices, wine and footballs etc. For other uses of fair trade, see fair trade. ... The International Fairtrade Certification Mark is an independent certification mark used in over 16 countries. ... For other uses, see Coffee (disambiguation). ... For other uses, see Tea (disambiguation). ... For other uses, see Rice (disambiguation). ... This article or section does not cite its references or sources. ... This article is about the fruit. ... For other uses, see Cocoa (disambiguation). ... For other uses, see Cotton (disambiguation). ... This article is about sugar as food and as an important and widely-traded commodity. ... For other uses, see Honey (disambiguation). ... Juice is the liquid naturally contained in plants. ... For other uses, see Nut (disambiguation). ... For other uses, see Fruit (disambiguation). ... Binomial name Willd. ... This article is about the plants used in cooking and medicine. ... External links Wikibooks Cookbook has more about this subject: Spice Food Bacteria-Spice Survey Shows Why Some Cultures Like It Hot Citat: ...Garlic, onion, allspice and oregano, for example, were found to be the best all-around bacteria killers (they kill everything). ... For other uses, see Wine (disambiguation). ... A football is used to play one of the different sports known as football or Rugby. ...


Fair trade today

Global fair trade sales have soared over the past decade. The increase has been particularly spectacular among Fairtrade labelled goods: in 2006, these sales amounted to approximately $2.3 billion worldwide, a 41 % year-to-year increase.[15] As per December 2006, 569 producer organizations in 58 developing countries were FLO-CERT Fairtrade certified and over 150 were IFAT registered..[16][17] December 2006 is the twelfth and final month of the year and will begin in 2 day(s). ... FLO-CERT GmbH is the largest inspection and certification body for labelled Fairtrade. ... The International Fair Trade Association (IFAT) consists of a global network of Fair Trade Organizations (FTOs). ...


Fairtrade Labelling Organizations (FLO) product certification

Note: Customary spelling of Fairtrade is one word when referring to the FLO product labelling system Image File history File links Download high-resolution version (1000x1175, 191 KB) This logo (International Fairtrade Certification Mark) is unique and could not be replaced with a free image. ... Image File history File links Download high-resolution version (1000x1175, 191 KB) This logo (International Fairtrade Certification Mark) is unique and could not be replaced with a free image. ... The International Fairtrade Certification Mark is an independent certification mark used in over 16 countries. ... Image File history File links TransFair. ... Image File history File links TransFair. ... US Fair Trade Certified Mark Canadian Fair Trade Certified Mark The Fair Trade Certified Mark is a certification mark used in Canada and in the United States. ... International Fairtrade Certification Mark Fairtrade certification (usually simply Fairtrade or Fair Trade Certifiedâ„¢ in the United States) is a product certification system designed to allow consumers to identify products which meet agreed environmental, labour and developmental standards. ...


Fairtrade labelling (usually simply Fairtrade or Fair Trade Certified in the US) is a certification system designed to allow consumers to identify goods which meet agreed standards. Overseen by a standard-setting body (FLO International) and a certification body (FLO-CERT), the system involves independent auditing of producers and traders to ensure the agreed standards are met. US Fair Trade Certified Mark Canadian Fair Trade Certified Mark The Fair Trade Certified Mark is a certification mark used in Canada and in the United States. ... United States may refer to: Places: United States of America SS United States, the fastest ocean liner ever built. ... FLO International is a non-profit, multi-stakeholder association involving 20 member organizations (or Labelling Initiatives), producer groups, traders and external experts. ... FLO-CERT GmbH is the largest inspection and certification body for labelled Fairtrade. ...


For a product to carry either the International Fairtrade Certification Mark or the Fair Trade Certified Mark, it must come from FLO-CERT inspected and certified producer organizations. The crops must be grown and harvested in accordance with the international Fairtrade standards set by FLO International. The supply chain must also have been monitored by FLO-CERT, to ensure the integrity of labelled products. The International Fairtrade Certification Mark is an independent certification mark used in over 16 countries. ... US Fair Trade Certified Mark Canadian Fair Trade Certified Mark The Fair Trade Certified Mark is a certification mark used in Canada and in the United States. ... FLO-CERT GmbH is the largest inspection and certification body for labelled Fairtrade. ... FLO International is a non-profit, multi-stakeholder association involving 20 member organizations (or Labelling Initiatives), producer groups, traders and external experts. ... A supply chain, logistics network, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. ... FLO-CERT GmbH is the largest inspection and certification body for labelled Fairtrade. ...


Fairtrade certification guarantees not only 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 covers the cost of production and facilitates social development, and protection and conservation of the environment. The Fairtrade certification system also promotes long-term business relationships between buyers and sellers, crop prefinancing and greater transparency throughout the supply chain and more. International Fairtrade Certification Mark Fairtrade certification (usually simply Fairtrade or Fair Trade Certifiedâ„¢ in the United States) is a product certification system designed to allow consumers to identify products which meet agreed environmental, labour and developmental standards. ... Ethical consumerism is the practice of boycotting products which a consumer believes to be associated with unnecessary exploitation or other unethical behaviour. ... The International Labour Organization (ILO) is a specialized agency of the United Nations that deals with labour issues. ... Slavery is any of a number of related conditions involving control of a person against his or her will, enforced by violence or other clear forms of coercion. ... Salting is the preparation of food with salt. ... UN redirects here. ... Human rights are rights which some hold to be inalienable and belonging to all humans. ...


The Fairtrade certification system covers a growing range of products, including bananas, honey, coffee, oranges, cocoa, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea and wine. Companies offering products that meet the Fairtrade standards may apply for licences to use one of the Fairtrade Certification Marks for those products. International Fairtrade Certification Mark Fairtrade certification (usually simply Fairtrade or Fair Trade Certifiedâ„¢ in the United States) is a product certification system designed to allow consumers to identify products which meet agreed environmental, labour and developmental standards. ... This article or section does not cite its references or sources. ... For other uses, see Honey (disambiguation). ... For other uses, see Coffee (disambiguation). ... Orange blossoms and oranges on tree For other uses of orange, see orange (disambiguation) The Orange Citrus x sinensis is a Citrus tree, and the fruits of this tree. ... For other uses, see Cocoa (disambiguation). ... For other uses, see Cotton (disambiguation). ... Binomial name Willd. ... For other uses, see Rice (disambiguation). ... External links Wikibooks Cookbook has more about this subject: Spice Food Bacteria-Spice Survey Shows Why Some Cultures Like It Hot Citat: ...Garlic, onion, allspice and oregano, for example, were found to be the best all-around bacteria killers (they kill everything). ... This article is about sugar as food and as an important and widely-traded commodity. ... For other uses, see Tea (disambiguation). ... For other uses, see Wine (disambiguation). ... The fair trade movement promotes international agreements to enforce price supports for commodities, particularly those exported from poor countries to the industrialised West. ...


The International Fairtrade Certification Mark was launched in 2002 by FLO, and replaced twelve Marks used by various Fairtrade labelling initiatives. The new Certification Mark is currently used worldwide (with the exception of Canada and the United States). The International Fairtrade Certification Mark is an independent certification mark used in over 16 countries. ... For other uses of fair trade, see fair trade. ...


The Fair Trade Certified Mark, used in Canada and in the United States, also still identifies Fairtrade goods in both countries. Full transition to the new Mark should become reality in the future as it gradually replaces the old Certification Marks in both countries. US Fair Trade Certified Mark Canadian Fair Trade Certified Mark The Fair Trade Certified Mark is a certification mark used in Canada and in the United States. ...


IFAT Fair Trade Organization membership

In an effort to complement the Fairtrade product certification system and allow most notably handcraft producers to also sell their products outside worldshops, the International Fair Trade Association (IFAT) launched in 2004 a new Mark to identify fair trade organizations (as opposed to products in the case of FLO International and Fairtrade). Called the FTO Mark, it allows consumers to recognize registered Fair Trade Organizations worldwide and guarantees that standards are being implemented regarding working conditions, wages, child labour and the environment. Image File history File linksMetadata Ftomark. ... Image File history File linksMetadata Ftomark. ... The International Fair Trade Association (IFAT) consists of a global network of Fair Trade Organizations (FTOs). ... Worldshops, world shops or Fair Trade Shops are retail outlets that practice the principles of fair trade. ... The International Fair Trade Association (IFAT) consists of a global network of Fair Trade Organizations (FTOs). ... FLO International is a non-profit, multi-stakeholder association involving 20 member organizations (or Labelling Initiatives), producer groups, traders and external experts. ... The fair trade movement promotes international agreements to enforce price supports for commodities, particularly those exported from poor countries to the industrialised West. ...


The FTO Mark gave for the first time all Fair Trade Organizations (including handcrafts producers) definable recognition amongst consumers, existing and new business partners, governments and donors. It has been suggested that this article or section be merged into Arts and crafts. ...


Fair trade impact studies

Main article: Fair trade impact studies

Several independent studies have recently measured the impact of fair trade on disadvantaged farmers and workers. The following studies are described and discussed on the Fair trade impact studies page.

  • Brewing Justice: Fair Trade Coffee, Sustainability and Survival
  • The Impact of Fair Trade on Producers and their Organizations: A Case Study with Coocafe in Costa Rica
  • One Cup at a time: Poverty Alleviation and Fair Trade coffee in Latin America
  • Étude d'impact du commerce équitable sur les organisations et familles paysannes et leurs territoires dans la filière café des Yungas de Bolivie
  • Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?
  • Fair Trade on marginalised producers: an impact analysis on Kenyan farmers
  • Assessing the Potential of Fair Trade for Poverty Reduction and Conflict Prevention: A Case Study of Bolivian Coffee Producers

Fair trade and politics

European Union

Display of Fairtrade products at the Derbyshire County Council head office
Display of Fairtrade products at the Derbyshire County Council head office

As early as 1994, the European Commission prepared the “Memo on alternative trade” in which it declared its support for strengthening Fair Trade in the South and North and its intention to establish an EC Working Group on Fair Trade. Furthermore, the same year, the European Parliament adopted the “Resolution on promoting fairness and solidarity in North South trade” (OJ C 44, 14.2.1994), a resolution voicing its support for fair trade. Image File history File links Faitrade_display. ... Image File history File links Faitrade_display. ... Derbyshire is a county in the East Midlands of England, and boasts some of Englands most attractive scenery. ... Established 1952, as the Common Assembly President Hans-Gert Pöttering (EPP) Since 16 January 2007 Vice-Presidents 14 Rodi Kratsa-Tsagaropoulou (EPP) Alejo Vidal-Quadras (EPP) Gérard Onesta (Greens – EFA) Edward McMillan-Scott (ED) Mario Mauro (EPP) Miguel Angel Martínez Martínez (PES) Luigi Cocilovo (ALDE) Mechtild...


In 1996, the Economic and Social Committee adopted an “Opinion on the European “Fair Trade” marking movement”. A year later, in 1997, the document was followed by a resolution adopted by the European Parliament, calling on the Commission to support Fair Trade banana operators. The same year, the European Commission published a survey on “Attitudes of EU consumers to Fair Trade bananas”, concluding that Fair Trade bananas would be commercially viable in several EU Member States.[18] The European Unions Economic and Social Committee is the consultative assembly of European social and economic partners. This phrase refers mainly to representatives of business, employers and trade unions. ... Berlaymont, the Commissions seat The European Commission (formally the Commission of the European Communities) is the executive branch of the European Union. ... This article or section does not cite its references or sources. ...


In 1998, the European Parliament adopted the “Resolution on Fair Trade” (OJ C 226/73, 20.07.1998), which was followed by the Commission in 1999 that adopted the “Communication from the Commission to the Council on “Fair Trade” COM(1999) 619 final, 29.11.1999.


In 2000, public institutions in Europe started purchasing Fairtrade Certified coffee and tea. Furthermore, that year, the Cotonou Agreement made specific reference to the promotion of Fair Trade in article 23 g) and in the Compendium. The European Parliament and Council Directive 2000/36/EC also suggested promoting Fair Trade.[18] The Cotonou Agreement is a treaty between the European Union and the group of African, Caribbean and Pacific states (ACP countries). ...


In 2001 and 2002, several other EU papers explicitly mentioned fair trade, most notably the 2001 Green Paper on Corporate Social Responsibility and the 2002 Communication on Trade and Development. Corporate Social Responsibility (CSR) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. ...


In 2004, the European Union adopted the “Agricultural Commodity Chains, Dependence and Poverty – A proposal for an EU Action Plan”, with a specific reference to the Fair Trade movement which has “been setting the trend for a more socio-economically responsible trade.” (COM(2004)0089).


In 2005, in the European Commission communication “Policy Coherence for Development – Accelerating progress towards attaining the Millennium Development Goals”, (COM(2005) 134 final, 12.04.2005), Fair Trade is mentioned as “a tool for poverty reduction and sustainable development”.[18]


And finally, on July 6, 2006, the European Parliament unanimously adopted a resolution on Fair Trade, recognizing the benefits achieved by the Fair Trade movement, suggesting the development of an EU-wide policy on Fair Trade, defining criteria that need to be fulfilled under Fair Trade to protect it from abuse and calling for greater support to Fair Trade (EP resolution “Fair Trade and development”, 6 July 2006) is the 187th day of the year (188th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...


"This resolution responds to the impressive growth of Fair Trade, showing the increasing interest of European consumers in responsible purchasing," said Green MEP Frithjof Schmidt during the plenary debate. Peter Mandelson, EU Commissioner for External Trade, responded that the resolution will be well-received at the Commission. "Fair Trade makes the consumers think and therefore it is even more valuable. We need to develop a coherent policy framework and this resolution will help us."[19] European Greens (or the European Green Party) is the name of the European Green Party, a political party at European level. ... Frithjof Schmidt is a German politician and Member of the European Parliament for Alliance 90/The Greens, part of the European Greens. ... This article or section cites very few or no references or sources. ... Berlaymont, the Commissions seat The European Commission (formally the Commission of the European Communities) is the executive branch of the European Union. ...


Belgium

Belgian lawmakers discussed as early as 2006 a possible legislation on fair trade. In January 2008, lawmakers proposed possible definitions and three proposals were debated. A consensus on a common definition, however, has not yet been reached.[20]


France

In 2005, French parliament member Antoine Herth issued the report “40 proposals to sustain the development of Fair Trade”. The report was followed the same year by a law, proposing to establish a Commission to recognize Fair Trade Organisations (article 60 of law no. 2005-882, Small and Medium Enterprises, 2 August 2005).[21] The Palais Bourbon, front The French National Assembly (French: Assemblée nationale) is one of the two houses of the bicameral Parliament of France under the Fifth Republic. ...


In parallel to the legislative developments, also in 2006, the French chapter of ISO (AFNOR) adopted a reference document on Fair Trade after five years of discussion. “ISO” redirects here. ...


Italy

In 2006, Italian lawmakers started debating how to introduce a law on fair trade in Parliament. A consultation process involving a wide range of stakeholders was launched early October.[22] A common definition of fair trade was most notably developed. However, its adoption is still pending as the efforts were stalled by the 2008 Italian political crisis. The Parliament of Italy (Italian: Parlamento Italiano) is the national parliament of Italy. ...


Netherlands

The Dutch province of Groningen was sued in 2007 by coffee supplier Douwe Egberts for explicitly requiring its coffee suppliers to meet fair trade criteria, most notably the payment of a minimum price and a development premium to producer cooperatives. Douwe Egberts, which sells a number of coffee brands under self-developed ethical criteria, believed the requirements were discriminatory. After several months of discussions and legal challenges, the province of Groningen prevailed in a well-publicized judgment. Coen de Ruiter, director of the Max Havelaar Foundation, called the victory a landmark event: "it provides governmental institutions the freedom in their purchasing policy to require suppliers to provide coffee that bears the fair trade criteria, so that a substantial and meaningful contribution is made in the fight against poverty through the daily cup of coffee".[23] Capital Groningen Queens Commissioner J.G.M. (Hans) Alders Religion (1999) Protestant 29% Catholic 7% Area  â€¢ Land  â€¢ Water   2,336 km² (8th) 623 km² Population (2006)  â€¢ Total  â€¢ Density 574,042 (9th) 246/km² (9th) Anthem Grunnens Laid ISO NL-GR Official website www. ... Douwe Egberts (often abbreviated as DE). ... Stichting Max Havelaar (or the Max Havelaar Foundation in English) is the Dutch member of Fairtrade Labelling Organizations International (FLO), which unites 20 national Fairtrade initiatives across Europe, Japan, North America, Australia and New Zealand. ...


United Kingdom

In 2007, both Scottish and Welsh governments were actively attempting to become the "world's first fair trade country". In Wales, the campaign to make Wales the world’s first Fair Trade country was launched in 2004 by the National Assembly for Wales.[24] In Scotland, First Minister Jack McConnell pledged that Scotland will aim to become a "Fair Trade Nation".[25] Established 1999 by the Government of Wales Act 1998 Presiding Officer Lord Elis-Thomas AM (Plaid) Since May 12, 1999 Deputy Presiding Officer Rosemary Butler AM (Lab) Leader of the House Carwyn Jones AM (Lab) Chief Executive and Clerk to the Assembly Claire Clancy Political parties 6 Welsh Labour (26... Jack Wilson McConnell (born June 30, 1960 in Irvine, North Ayrshire) is a former First Minister of Scotland, leader of the Scottish Labour Party and current Member of the Scottish Parliament (MSP) for the Motherwell and Wishaw constituency. ... Fairtrade Town is a status awarded by the Fairtrade Foundation in the United Kingdom and Channel Islands, describing an area which is committed to the promotion of Fairtrade-labelled goods. ...


In June 2007, a parliamentary committee published the report Fair Trade and Development, criticising the government for "failing to adequately support fair trade despite having said it wanted to help poor countries trade their way out of poverty". The MPs, led by Malcolm Bruce, said the Department for International Development "had not kept pace with growing support for fair trade among the public and retailers". A Select Committee is a committee made up of a small number of parliamentary members appointed to deal with particular areas or issues originating in the Westminster System of parliamentary democracy. ... Malcolm Bruce Malcolm Bruce, MP (born November 17, 1944) is a Scottish Liberal Democrat politician. ... The Department for International Development (DFID) is a United Kingdom government department, the function of which is to promote sustainable development and eliminate world poverty. // Ministers The Department is headed by Cabinet Minister and Secretary of State for International Development Hilary Benn. ...


The committee report examined several ethical trading schemes and concluded that fair trade was "gold standard in terms of trading relations with producers". It called for greater support both domestically and internationally of fair trade organisations and recommended making a senior official responsible for fair trade within the government. The report also suggested to commission research on the feasibility of a labelling scheme which will force all retailers to show how much they paid farmers and workers in the developing world for each particular product.[26]


Common justifications for fair trade

Fairtrade Certified Rice Producer in Thailand
Fairtrade Certified Rice Producer in Thailand

Implicit and often explicit in fair trade is a criticism of the current organization of international trade as being "unfair". Fair trade advocates argue in favor of the need for fair trade by mentioning the purported microeconomic market failures of the current system and an alleged commodity crisis and its impact on developing country producers. Image File history File links FairtradeRiceIndia. ... Image File history File links FairtradeRiceIndia. ... For other uses, see Rice (disambiguation). ... Microeconomics is the study of the economic behaviour of individual consumers, firms, and industries and the distribution of production and income among them. ... In economics, a market failure is a situation in which markets do not efficiently organize production or allocate goods and services to consumers. ...  Newly industrialized countries  Other emerging markets  Other developing economies  High income  Upper-middle income  Lower-middle income  Low income A developing country is that country which has a relatively low standard of living, an undeveloped industrial base, and a moderate to low Human Development Index (HDI) score and per capita...

Free trade and market failures

All FINE members and fair trade federations support in theory the principles of unhindered free trade. However, as Alex Nicholls, social entrepreneurship professor at Oxford University, states, the "key conditions on which classical and neo-liberal trade theories are based are notably absent in rural agricultural societies in many developing countries."[27] Perfect market information, perfect access to markets and credit, and the ability to switch production techniques and outputs in response to market information are fundamental assumptions which "are fallacious in the context of agricultural producers and workers in developing countries".[27] FINE was created in 1998 and is an informal association of the four main Fair Trade networks: F Fairtrade Labelling Organizations International (FLO) I International Fair Trade Association (IFAT) N Network of European Worldshops (NEWS!) and E European Fair Trade Association (EFTA) // The aim of FINE is to enable these... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... Alex Nicholls is a lecturer in social entrepreneurship at the University of Oxford. ... The University of Oxford, located in the city of Oxford in England, is the oldest university in the English-speaking world. ... Classical liberalism (also known as traditional liberalism[1] and laissez-faire liberalism[2]) is a doctrine stressing the importance of human rationality, individual property rights, natural rights, the protection of civil liberties, constitutional limitations of government, free markets, and individual freedom from restraint as exemplified in the writings of Adam... For the school of international relations, see Neoliberalism in international relations. ... Sign in a rural area in Dalarna, Sweden Qichun, a rural town in Hubei province, China Rural areas (also referred to as the country, countryside) are settled places outside towns and cities. ...  Newly industrialized countries  Other emerging markets  Other developing economies  High income  Upper-middle income  Lower-middle income  Low income A developing country is that country which has a relatively low standard of living, an undeveloped industrial base, and a moderate to low Human Development Index (HDI) score and per capita... Credit as a financial term, used in such terms as credit card, refers to the granting of a loan and the creation of debt. ...


The example of coffee is particularly telling: "since it takes from three to four years for a coffee plant to produce significant quantities of coffee, and up to seven years before the plant reaches peak productivity, it is difficult for coffee farmers to react quickly to price fluctuations. As a result, coffee supply often increases even as market prices plummet. Further, this leads to a collective action problem, where each farmer has an incentive to increase production as price falls in order to reduce per unit cost and increase his or her margins. In aggregate, this activity creates a negative feedback loop and further depresses the world price."[28]


According to Fair trade proponents, this example clearly shows how the absence of perfect microeconomic conditions can nullify or even reverse the potential gains to producers from trade. While Nicholls agrees that the win-win situation for all actors involved may be broadly correct in some markets, nevertheless, "within developing countries market conditions are not such that producers can unambiguously be declared to be better off through trade."[27] The existence of these market failures lessens the capacity trade has to lift developing countries out of poverty. This article is about economic exchange. ... Alex Nicholls is a lecturer in social entrepreneurship at the University of Oxford. ... Market failure is a term used by economists to describe the condition where the allocation of goods and services by a market is not efficient. ... A boy from an East Cipinang trash dump slum in Jakarta, Indonesia shows what he found. ...


Fair trade is seen as an attempt to address these purported market failures by providing producers a stable price for their crop, business support, access to premium Northern markets and better general trading conditions.


The commodity crisis

Fair trade advocates also often point out that unregulated competition in global commodity markets ever since the 1970s and 1980s has encouraged a price "race to the bottom". During the 1970-2000 period, prices for many of the main agricultural exports of developing countries, such as sugar, cotton, cocoa and coffee, fell by 30 to 60 percent.[29] According to the European Commission, “the abandonment of international intervention policies at the end of the 1980s and the commodity market reforms of the 1990s in the developing countries left the commodity sectors, and in particular small producers, largely to themselves in their struggle with the demands of the markets”. Today, “producers… live an unpredictable existence because the prices for a wide range of commodities are very volatile and in addition follow a declining long-term trend”.[30] The total loss for developing countries due to falling commodity prices has been estimated by the Food and Agricultural Organisation (FAO) to total almost $250 billion during the 1980-2002 period.[18] In government regulation, a race to the bottom is a theoretical phenomenon which occurs when competition between nations or states (over investment capital, for example) leads to the progressive dismantling of regulatory standards. ... This article is about sugar as food and as an important and widely-traded commodity. ... For other uses, see Cotton (disambiguation). ... For other uses, see Cocoa (disambiguation). ... For other uses, see Coffee (disambiguation). ... Berlaymont, the Commissions seat The European Commission (formally the Commission of the European Communities) is the executive branch of the European Union. ... Economic interventionism is a term used to describe activity undertaken by a central government to affect a countrys economy in an attempt to increase economic growth and/or standards of living. ... It has been suggested that FAOSTAT be merged into this article or section. ...


Millions of poor farmers are dependent on commodities and on the price they receive for their harvest. In about 50 developing countries, three or fewer primary commodity exports constitute the bulk of export revenue. Look up Harvest in Wiktionary, the free dictionary. ...


Many farmers, often without other means of subsistence, are obliged to produce more and more, no matter how low the prices are. Research has shown[citation needed] that those who suffer most from declines in commodity prices are the rural poor — i.e. the majority of people living in developing countries. Basic agriculture employs over 50% of the people in developing countries, and accounts for 33% of their GDP.[31]


Fair trade supporters believe current market prices do not properly reflect the true costs associated with production; they believe only a well-managed stable minimum price system can cover environmental and social production costs. Social cost, in economics, is the total of all the costs associated with an economic activity. ...


Criticism

Main article: Fair trade debate

Fair trade's increasing popularity has drawn criticism from both ends of the political spectrum. Some economists and think tanks see "fair trade" as a type of subsidy that impedes growth. Segments of the left criticize fair trade for not adequately challenging the current trading system. Fair trades increasing popularity has drawn criticism from both ends of the political spectrum. ... Political parties Part of the Politics series Politics Portal This box:      A political spectrum is a way of visualizing different political positions. ... This article is about the institution. ... In economics, a subsidy is generally a monetary grant given by a government to lower the price faced by producers or consumers of a good, generally because it is considered to be in the public interest. ... Left wing redirects here. ...


Price distortion argument

Effects of a Price Floor

Criticism: Fair trade opponents such as the Adam Smith Institute claim that similar to other farm subsidies, fair trade attempts to set a price floor for a good that is in many cases above the market price and therefore encourages, as fair trade opponents claim, existing producers to produce more and new producers to enter the market, leading to excess supply.[32] Through the laws of supply and demand, excess supply can lead to lower prices in the non-Fair Trade market.{.[33] Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... The Adam Smith Institute is a think tank based in the United Kingdom, named after the father of modern economics, Adam Smith. ... An agricultural subsidy is a governmental subsidy paid to farmers to supplement their income, help manage the supply of agricultural commodities, and bolster the market price of commodities. ... A Price floor is a government-imposed limit on how low a price can be charged for a product. ... Market price is an economic concept with commonplace familiarity; it is the price that a good or service is offered at, or will fetch, in the marketplace; it is of interest mainly in the study of microeconomics. ... Produce on display at La Boqueria market in Barcelona, Spain. ... The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). ...


In 2003, Cato Institute's vice president for research Brink Lindsey referred to fair trade as a “well intentioned, interventionist scheme...doomed to end in failure." Fair trade, according to Lindsey, is a misguided attempt to make up for market failures in which one flawed pricing structure is replaced with another.[34]Lindsey's comments echo the main criticisms of Fair Trade, claiming that it "leads fair trade producers to increase production." While benefiting a number of Fair Trade producers over the short run, fair trade critics worry about the impact on long run development and economic growth. Economic theory suggests that when prices are low due to surplus production, adding a subsidy or otherwise artificially raising prices will only exacerbate the problem by encouraging more supply[35] and also encouraging workers into unproductive activities. [36] The Cato Institute is a libertarian think tank headquartered in Washington, D.C. The Institutes stated mission is to broaden the parameters of public policy debate to allow consideration of the traditional American principles of limited government, individual liberty, free markets, and peace by striving to achieve greater involvement... Brink Lindsey is Cato Institutes vice president for research. ... Economic interventionism is a term used to describe activity undertaken by a central government to affect a countrys economy in an attempt to increase economic growth and/or standards of living. ... In economics, a market failure is a situation in which markets do not efficiently organize production or allocate goods and services to consumers. ...


Response: The Fairtrade Foundation counters the price distortion argument by claiming that fair trade does not ‘fix prices’. "It rather has a minimum floor price that ensures farmers can meet the costs of sustainable production should market prices fall below this level. The minimum price is not a fixed price but the starting point for a market-based price negotiation. Many fair trade growers routinely earn more than this for the quality, type of coffee bean (or other product) or the particular origin they offer. The minimum price mechanism provides the most vulnerable people in the supply chain the security to meet their basic costs in time of crisis. Effectively, it provides a safety net should markets fall below a level considered necessary for farmers to earn back the costs of sustainable production".[37] The Fairtrade Foundation is a charity which promotes the sale of Fairtrade-labelled products in the United Kingdom. ...


Moreoever, the fair trade minimum price only applies if the market price is lower than this. When market prices exceed the minimum price, traders must negotiate on the basis of market prices, not fair trade minimums.[38]


Several academics, including Hayes[39], Becchetti and Rosati[40], identify two other counterarguments to this criticism.

  1. First, in many cases the exchange between producers and intermediaries does not occur in a competitive framework.[40] In such case the market price is a distortion because it does not reflect the productivity of producers but their lower market power.[41]
  2. Second, the price distortion argument does not take into account the principles of product differentiation. Coffee, for example, cannot be compared to other commodities such as oil: there is not one single type of coffee but instead many different brands that are differentiated from one another in terms of quality, blends, packaging, and now also "social responsibility" features. Consumer demand and taste define what different market prices are acceptable for each of these products.[40] In this sense, fair trade can be considered as a market-driven innovation in the food industry that creates a new range of products for which a growing segment of consumers are willing to pay more based on environmental and social responsibility claims.[40]

And finally, beyond these elements, it is also important to also take into account all the other non-price related potential benefits of the fair trade value chain in terms of technical assistance, democratization of markets through increasing consumer power, crop diversification programs, etc.[40] In marketing, product differentiation is the modification of a product to make it more attractive to the target market. ... For other uses, see Coffee (disambiguation). ... Petro redirects here. ... This article is about brands in marketing. ...


References

  1. ^ Fairtrade Labelling Organizations International (2007). www.fairtrade.net. URL accessed on May 24, 2007.
  2. ^ [1] p. 3, The World Trade Organisation publishes annual figures on the world trade of goods and services.
  3. ^ FINE. (2005) Fair Trade in Europe 2005: Facts and Figures on Fair Trade in 25 European countries. Brussels: Fair Trade Advocacy Office
  4. ^ Fairtrade Labelling Organizations International (2006). Fairtrade FAQs URL accessed on December 14, 2006.
  5. ^ European Fair Trade Association. (2006). Definition of Fair Trade URL accessed on August 2, 2006.
  6. ^ International Fair Trade Association (2007). The 10 Standards of Fair Trade URL accessed on 15 November 2007.
  7. ^ International Fair Trade Association. (2005).Crafts and Food. URL accessed on August 2, 2006.
  8. ^ Hockerts, K. (2005). The Fair Trade Story. p1
  9. ^ International Fair Trade Association. (2005). Where did it all begin? URL accessed on August 2, 2006.
  10. ^ Fair trade history (Scott, Roy)
  11. ^ Redfern A. & Snedker P. (2002) Creating Market Opportunities for Small Enterprises: Experiences of the Fair Trade Movement. International Labor Office. p6
  12. ^ Nicholls, A. & Opal, C. (2004). Fair Trade: Market-Driven Ethical Consumption. London: Sage Publications.
  13. ^ Renard, M.-C., (2003). Fair Trade: quality, market and conventions. Journal of Rural Studies, 19, 87-96.
  14. ^ Redfern A. & Snedker P. (2002) Creating Market Opportunities for Small Enterprises: Experiences of the Fair Trade Movement. International Labor Office. p7
  15. ^ Fairtrade Labelling Organizations International (2007). www.fairtrade.net. URL accessed on May 24, 2007.
  16. ^ Fairtrade Labelling Organizations International (2007). www.fairtrade.net. URL accessed on May 24, 2007.
  17. ^ IFAT. (2006) The FTO Mark. URL accessed on October 30, 2006.
  18. ^ a b c d FINE (2006). Business Unusual. Brussels: Fair Trade Advocacy Office
  19. ^ Frithjof Schmidt MEP (2006). Parliament in support of Fair Trade URL accessed on August 2, 2006.
  20. ^ RTBF (January 2008) Le commerce équitable veut se doter de lois, http://www.rtbf.be/info/societe/ARTICLE_149630
  21. ^ FINE (2006). Business Unusual. Brussels: Fair Trade Advocacy Office
  22. ^ Nembri, Antonietta (October 4, 2006) Equo e solidale: un convegno sul futuro normativo. URL accessed on October 28, 2006.
  23. ^ Max Havelaar Foundation (2007). [85.82.218.199/fileadmin/Bruger_filer/Dokument_database/IKAvaerktoej/EU_siden/Max_Havalaar.pdf Dutch Province of Groningen wins summary brought by Doug Egberts and can continue specifying fair trade coffee]
  24. ^ Fair Trade Wales (2007) Fair Trade Wales URL accessed on June 24, 2007.
  25. ^ Scottish Executive (2007). Scotland set to become Fair Trade nation URL accessed on June 24, 2007.
  26. ^ International Development Committee (June, 2007) Fair Trade and Development URL accessed on June 24, 2007.
  27. ^ a b c Nicholls, A. & Opal, C. (2004). Fair Trade: Market-Driven Ethical Consumption. London: Sage Publications. p17-19
  28. ^ Grodnick A. & Conroy M. (2007). Fair Trade: The Challenges of transforming globalization. Routledge. p86
  29. ^ Agricultural Commodity Chains, Dependence and Poverty. A proposal for an EU Action Plan. European Commission, 2004.
  30. ^ Agricultural Commodity Chains, Dependence and Poverty. A proposal for an EU Action Plan. European Commission, 2004.
  31. ^ UNCTAD Press Release, “UNCTAD Calls For Policy Changes to Avoid Throwing World Economy Into Recession,” 25 August 1998.
  32. ^ http://www.adamsmith.org/pdf/groundsforcomplaint.pdf
  33. ^ http://www.adamsmith.org/pdf/groundsforcomplaint.pdf
  34. ^ Brink, Lindsey. (2004). Grounds for Complaint: Understanding the "Coffee Crisis". URL accessed on August 8, 2007.
  35. ^ Milton Freidman, Free to Choose 1979
  36. ^ http://www.citizenshipfoundation.org.uk/main/comps.php?56
  37. ^ The Fairtrade Foundation (2008) Responding to Unfair Trade
  38. ^ The Fairtrade Foundation (2008) Responding to Unfair Trade
  39. ^ Hayes, M. G. (2006) On the efficiency of Fair Trade, Review of Social Economy, 64 (4), 447-68
  40. ^ a b c d e L.Becchetti F.C. Rosati, 2006, Globalisation and the death of distance in social preferences ad inequity aversion: empirical evidence from a pilot study on fair trade consumers, CEIS Working Paper, n.216 and World Economy (forth.)
  41. ^ Hayes, M. G. and Moore, G. A. (2005)The Economics of Fair Trade:a guide in plain English

See also

ATOs AgroFair · Alter Eco · Artisans du Monde · Cafédirect · Claro Fair Trade · Cooperative Coffees · Ctm altromercato · Divine Chocolate · Equal Exchange · Equita · El Puente · EZA Fairer Handel · Fair Trade Original · Gepa The Fair Trade Company · Ideas · Intermon Oxfam · La Siembra · Oxfam-Magasins du monde · Oxfam Trading · Oxfam-Wereldwinkels · SERRV International · Solidar'Monde · Traidcraft · Twin Trading · Ten Thousand Villages · Veja Sneakers
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Trade justice is a campaign by non-governmental organisations, such as consumer groups, trade unions, faith groups, aid agencies and environmental groups. ... The Trade Justice Movement is a British coalition, founded in 2000, of more than 80 organisations campaigning for Trade Justice - fundamental change of the unjust rules and institutions governing international trade so that it is made to work for all, particularly poor people, and the environment. ... For other uses, see Sweatshop (disambiguation). ... Worldshops, world shops or Fair Trade Shops are retail outlets that practice the principles of fair trade. ... For other uses of fair trade, see fair trade. ... The International Fair Trade Association (IFAT) consists of a global network of Fair Trade Organizations (FTOs). ... The Network of European Worldshops (NEWS!) was established in 1994 and coordinates the cooperation between Worldshops in Europe. ... The European Fair Trade Association is a Dutch association established in 1990. ... FINE was created in 1998 and is an informal association of the four main Fair Trade networks: F Fairtrade Labelling Organizations International (FLO) I International Fair Trade Association (IFAT) N Network of European Worldshops (NEWS!) and E European Fair Trade Association (EFTA) // The aim of FINE is to enable these... The Fair Trade Federation is an association of Canadian and American fair trade wholesalers, importers and retailers. ... FLO International is a non-profit, multi-stakeholder association involving 20 member organizations (or Labelling Initiatives), producer groups, traders and external experts. ... FLO-CERT GmbH is the largest inspection and certification body for labelled Fairtrade. ... The International Fairtrade Certification Mark is an independent certification mark used in over 16 countries. ... US Fair Trade Certified Mark Canadian Fair Trade Certified Mark The Fair Trade Certified Mark is a certification mark used in Canada and in the United States. ... The Asociación del Sello de Productos de Comercio Justo (ASPCJ) is the Spanish member of Fairtrade Labelling Organizations International (FLO), which unites 20 national Fairtrade initiatives across Europe, Japan, North America, Australia and New Zealand. ... The Fair Trade Association of Australia and New Zealand (FTAANZ) is the Australian and Kiwi member of Fairtrade Labelling Organizations International (FLO), which unites 20 national Fairtrade initiatives across Europe, Japan, North America, Australia and New Zealand. ... Fairtrade Mark Ireland is the Irish member of FLO International, which unites 20 national Fairtrade initiatives across Europe, Japan, North America, Australia and New Zealand. ... The Fairtrade Foundation is a charity which promotes the sale of Fairtrade-labelled products in the United Kingdom. ... Association Max Havelaar France is the French member of Fairtrade Labelling Organizations International (FLO), which unites 20 national Fairtrade initiatives across Europe, Japan, North America, Australia and New Zealand. ... Stichting Max Havelaar (or the Max Havelaar Foundation in English) is the Dutch member of Fairtrade Labelling Organizations International (FLO), which unites 20 national Fairtrade initiatives across Europe, Japan, North America, Australia and New Zealand. ... The Max Havelaar Foundation is a non-profit certification and public education organization promoting Fairtrade products in Switzerland to improve the livelihood of developing world farmers and workers. ... Transfair Canada is a national non-profit certification and public education organization promoting Fair Trade Certified products in Canada to improve the livelihood of developing world farmers and workers. ... Transfair USA, a 501(c)(3) non-profit organization, is one of twenty members of Fairtrade Labelling Organizations International (FLO), and the only third-party certifier of Fair Trade products in the United States. ... Fairtrade Town is a status awarded by the Fairtrade Foundation in the United Kingdom and Channel Islands, describing an area which is committed to the promotion of Fairtrade-labelled goods. ... International Fairtrade Certification Mark Fairtrade Town is a status awarded by a FLO member Fairtrade labelling initiative (i. ... Fairtrade fortnight is an annual event in the U.K. in which fair and ethical trading values are celebrated. ... Make Trade Fair is a campaign organized by Oxfam International to promote fair trade among governments, institutions, and multinational corporations. ... Each year, on the second Saturday of May, World Fair Trade Day is celebrated. ... Black Gold is a 2006 documentary film about the international coffee trade and its ramifications for the farmers who grow coffee. ... One Cup (Short Documentary) 28 Mins, 2006. ... An alternative trading organization (ATO) is a non-governmental organization (NGO) explicitly committed to realigning exploitative global trading structures, particularly those involving partners in developing countries. ... Alter Eco is a French alternative trading organization, created in 1998, specialized in the import and the distribution of Fairtrade products. ... Cafédirect is a UK-based alternative trading organization. ... Ctm altromercato is Italys largest alternative trading organization. ... Divine Chocolate Limited, formerly the Day Chocolate Company, is a manufacturer of Fairtrade chocolate products in the United Kingdom. ... Equal Exchange is a for-profit Fairtrade company located in West Bridgewater, Massachusetts that distributes organic, gourmet coffee, tea, sugar, cocoa, and chocolate bars produced by farmer cooperatives in Latin America, Africa and Asia. ... The GEPA is Europes largest alternative trading organization. ... SERRV International is a 501(c)3 nonprofit, alternative trading organization operating in the United States and in Africa, Asia and Latin America. ... Traidcraft is a UK-based alternative trading organisation, established in 1979, dedicated to fighting poverty through trade. The organisation has two components: a trading company called Traidcraft plc, which offers a range of fairly traded products in the UK; and a development charity (Traidcraft Exchange) that specialises in making trade... Twin Trading is a leading alternative trading company in the United Kingdom. ... Ten Thousand Villages is a program of the Mennonite Central Committee (MCC) started in 1946 that pioneered the concept of fair trade by buying crafts directly from artisans in the developing world and paying a living wage. ... Launched in March 2005 in Paris and Tokyo, Veja is a brand of ecological and fair trade sneakers. ...

  Results from FactBites:
 
..:: About Fair Trade :: Fair Trade and Socially Conscious Gifts Online ::.. (508 words)
Fair Trade means an equitable and fair partnership between marketers in North America and producers in Asia, Africa, Latin America, and other parts of the world.
Fair Trade helps exploited producers escape from this cycle and gives them a way to maintain their traditional lifestyles with dignity.
The Fair Trade Federation is an association of businesses that follow fair trade principles across the board, so its presence on a product DOES mean that a company supports the highest level of commitment to fair trade -100%.
Fair Trade Certified | Transfair USA | Fair Trade Overview (307 words)
Fair Trade Certification empowers farmers and farm workers to lift themselves out of poverty by investing in their farms and communities, protecting the environment, and developing the business skills necessary to compete in the global marketplace.
Fair Trade Certification is currently available in the U.S. for coffee, tea and herbs, cocoa and chocolate, fresh fruit, sugar, rice, and vanilla.
Fair Trade helps farming families across Latin America, Africa and Asia to improve the quality of life in their communities.
  More results at FactBites »

 
 

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