Fair Trade Defined: 

As a concept becomes well-known its meaning often becomes unclear.  Let us take a moment and get a clearer picture of what fair trade is.

Fair Trade is a concept that was historically used in the domestic labor union movement, i.e. for products that were produced in accordance with certain labor standards concerned with worker safety, minimum wages, etc. There are certain federal laws enforcing these standards.

More recently the concept has been adapted on an international level to denote products produced in a manner that avoids sweatshop conditions, worker safety and environmental concerns, often working with small business owners as well as member-owned cooperative enterprises.

History of the Movement

After World War II several organizations, primarily charities or religious groups concerned with justice for the poor, began to market products, not as fundraisers, but as a way to help disadvantaged persons around the world earn a living. In Europe this effort took a strongly political tone, with products being sold to protest or promote certain foreign policies of Western governments or international trade agreements made by United Nations agencies. In the late 1960's and early 1970's conferences of groups interested in alternative marketing were held in Europe and North America. By the 1980's these efforts included producers who encouraged the group to be more inclusive and the movement changed it name to alternative trading, in recognition that the producer partners had an equal, if not controlling interest, in the movement. The consensus was not necessarily to oppose either capitalism or communism but to address the lack of concern by either system for the long-term effects on the environment or on the human-face behind the product.

As the meetings progressed more formal associations developed consensus on a list of basic principles, which if met, would create a more democratic marketplace, treating both producers and consumers justly. Because the movement sees itself as a positive force in the new global economy, it was decided that there was no need to be an "alternative", and thus the term now used is fair trade. As an idea suitable for everyone, fair trade is a concept, owned by no one, and shared by a majority of the world's people. The definitions of fair trade are still evolving, with refinements made at each major meeting of fair trade practitioners. Several federations are active the North American Fair Trade Federation, European Fair Trade Association (EFTA) and the International Fair Trade Association. New members must agree to adhere to basic fair trade principles, and can include both producers and marketing groups.
 

Fair Trade Labels are service marks owned by a coalition of independent nonprofit groups in now 20 countries which seek to help consumers identify genuine fair trade products. The concept started in Holland and now includes coffee, tea and chocolate here in the U.S. There are slightly different standards for each type of product. To use the fair trade label a producer and a marketing organization must subject themselves to an investigation concerning its business practices and policies from the Fair Trade committee and provide regular reports. This system is funded by a royalty fee of 1% of the purchase price of the product paid by the marketing groups. In the future, other products such as handicrafts, clothing, etc. will be researched and added to the official fair trade label register.

Fair Trade Organizations are groups which market products based on fair trade criteria, and are generally members of the various Fair Trade associations. There are, however, great differences between fair trade organizations. Some groups have religious affiliations. Other are nonprofit, others have political agendas or promote certain specific causes (Cocoons not Cocaine is a fair trade group marketing silk from Colombia.) Some market only to their members, with educations material attached, others only thru stores or on the web. Some are large, and advertise heavily. Some are owned by the producers themselves. There are currently 85 groups using the fair trade label for coffee, between 1000 and 1500 retail shops and numerous websites. Most are independent, not legally affiliated. Government regulators so far have not identified fair trade organizations as a special group requiring special rules. (And then there are primarily commercial organizations which sell a small percentage of items in the shop labeled as fair trade.) Just as it is important for consumers to evaluate products on fair trade criteria, it is also important that consumers learn about the specific marketing organization before purchasing a product.

Organic or natural foods, environmentally friendly (or even bird friendly/shade grown or sweatshop free products are all separate concepts which also relate to many fairly traded products. Each have their own trade associations, set of criteria and independent certification programs.

For example a certain coffee may be certified as fairly traded by Transfair USA, certified organic by the Organic Crop Improvement Association, approved as shade grown by the National Audubon Society, listed as sweatshop labor free by Co-op America, and use the twin-pines, cooperative symbol as a member of the National Cooperative Business Association. In addition, it might be marketed by the nonprofit Cooperative Trading/Friends of the Third World organization using its registered trademark, indicating that it was also imported, packaged and marketed thru Friends employment training program, providing jobs for local needy folks, and sold along with educational information explaining that the small farmers growing the coffee are members of a base level cooperative, a co-op federation and a coalition of peasant farmers covering all of Central America. Nine socially concerned labels in all for this single product.

Our modern world, with products coming into our homes from every corner of the world, certainly provides a challenge. But more than ever, the information available today thru computerization, presents an opportunity for every individual to make excellent choices when purchasing almost anything. And the fair trade movement offers the best opportunity for making that choice the most socially responsible one.

MORE / other FAIR TRADE Shoping Ideas in ANN ARBOR...
 

Here is the cut SHORTER version of the article: What is FAIR TRADE? Fair Trade is a concept that was historically used in the domestic labor union movement, i.e. for products that were produced in accordance with certain labor standards concerned with worker safety, minimum wages, etc. There are certain federal laws enforcing these standards. More recently the concept has been adapted on an international level to denote products produced in a manner that avoids sweatshop conditions, worker safety and environmental concerns, often working with small business owners as well as member-owned cooperative enterprises. After World War II several organizations, primarily charities or religious groups concerned with justice for the poor, began to market products, not as fundraisers, but as a way to help disadvantaged persons around the world earn a living.   This attempts to address the long-term effects on the environment and on the human-face behind products.   Organic or natural foods, environmentally friendly products are all separate concepts, which also relate to many fairly traded products. Our modern world, with products coming into our homes from every corner of the world, certainly provides a challenge for consumers to evaluate products on fair trade criteria.   But, the information available today thru computerization, presents an opportunity for every individual to make excellent choices when purchasing almost anything.  And the fair trade movement offers the best opportunity for making that choice the most socially responsible one. This article was edited by Grace Potts from:  www.friendsofthethirdworld.org/fairtrade.html Come Sample Fair Traded Coffee on Sunday, December 9 in the PAC after 8:45 & 1030AM Masses. Some people try to take a different path, to simplify their lives just a little bit, and to recall the real meaning of Christmas.  Our use of the word "SIMPLICITY" means doing things that are more "IN LINE" with WHO & what we are about. ("SIMPLICITY" does NOT mean that we will do nothing.) Over the next few weeks, we will be promoting different ways to think about Christmas; different ways of seeking peace during this season of peace. MORE / other FAIR TRADE Shoping Ideas in ANN ARBOR...