Business, Legal & Accounting Glossary
Fair trade relates to a social movement that empowers producers in developing countries to earn their due by exporting goods to developed nations. Some export items that form a part of fair trade include sugar, handicrafts, coffee, tea, cotton, honey, and cocoa. Fairtrade promotes sustainability and ensures a living wage for producers and a minimum price for farmers’ commodities. Fairtrade practices discourage forced labour and child labour.
Fair trade policies have been successful in ensuring economic security to marginalized workers. In 2007, total sales under fair trade amounted to about $3.62 billion. Estimates indicate that by June 2008, more than 7.5 million marginalized producers have benefited from fair trade. Some famous organizations that support fair trade include Oxfam, Catholic Relief Services, Caritas International, and Amnesty International.
Fair trade principles focus on market access for marginalized producers and workers and the sustainability of trade. Fairtrade also ensures that producers are enlightened on various topics related to market trends. It also acts as a bridge between producers and consumers.
Products that satisfy certain environmental, developmental and labour standards, receive fair trade certification. The fairtrade certification system is managed by FLO International and FLO-CERT. Some products that are covered under the fair trade certification system are rice, honey, coffee, cocoa, and wine.
The International Fair Trade Association was established in 1989. About 300 organizations hailing from 60 nations form an inseparable part of this fair trade body. FTO Mark, launched in 2004 by the International Fair Trade Association, is used to identify registered fair trade organizations.
FLO International, a 23 member non-profit organization, includes producers, traders and external professionals. FLO International is headquartered in Bonn, Germany. It helps in developing international fair trade standards, supports producers, and promotes fair trade business.
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This glossary post was last updated: 28th March, 2020 | 6 Views.