Fair Trade

Fair Trade

Context

The principal international fair trade organizations have agreed the following definition: Fair trade is an approach to business and to development based on dialogue, transparency, and respect that seeks to create greater equity in the international trading system. Fair trade businesses partner with farmers and craftspeople in developing countries who are socially and economically marginalized to find markets and customers for their goods.

Fair Trade is a strategy for poverty alleviation and sustainable development through trading partnerships. Members collaborate with marginalized communities to nurture equitable social and economic opportunities by growing market access. Members place the interests of producers and their communities as the primary concern of their enterprise.

Fair Trade involves relationships that are open, fair, consistent, respectful, and value an equitable distribution of power. Members are transparent with customers and producers about their supply chains by sharing information about the entire trading chain through honest and proactive communication. They create mechanisms to actively involve producers and customers in the trading chain. If problems arise, members work cooperatively with fair trade partners and other organizations to implement solutions.

Fair Trade encourages an understanding by all participants of their role in world trade. Members actively raise awareness about Fair Trade and the possibility of greater justice in the global economic system. They encourage customers and producers to ask questions about conventional and alternative supply chains and to make informed choices. Members demonstrate that trade can be a positive force for improving living standards, health, education, the distribution of power, and the environment in the communities with which they work.