Fair Trade is a growing, international movement which ensures that producers in poor countries get a fair deal. This means a fair price for their goods (one that covers the cost of production and guarantees a living income), long-term contracts which provide real security; and for many, support to gain the knowledge and skills that they need to develop their businesses and increase sales. (Oxfam: Make Trade Fair)
The fair trade movement originated in Europe over 40 years ago with a mission to create sustainable incomes for poor and disadvantaged producers by:
improving working conditions through education, campaigning and creating access to outside markets.
Today the majority of these producers are workers in Latin America, Africa, Asia and the Caribbean. Unfortunately free trade agreements, such as NAFTA, APEC and WTO, have created industrial opportunities in these developing regions but ignored actions to protect workers or the environment. For example, in India millions have been employed as piece-work garment workers for below minimum wage; this is accepted since the market for their traditional crafts has been all but eliminated.
Additionally, the market for fair trade has enjoyed great success in Europe, where fair trade goods are available in over 2,700 world stores and 43,000 supermarkets. There are four multi-national fair trade organizations that work together to help spread and advocate the fair trade movement: IFAT, EFTA, NEWS! and FLO International. In 2001, the European Fair Trade Association surveyed 18 countries and found that they work with over 100 importing organizations with the four largest having annual turnover of over €10 million a year ($12.3 million), while the total net retail value is estimated to be over €92 million a year (European Fair Trade Association).
This trend is making its way over to the US slowly but surely. American consumers are increasingly concerned about the origin and the environmental and social footprint of their purchases. This “Fair Trade” movement is growing similar to the Organic industry, which began as a fringe movement but is now a global industry worth $23B (2002, Organic Monitor). In 2000, fair trade sales in North America totaled $100 million. This figure almost doubled to $180m within two years, with the majority of revenues from agricultural products: coffee, tea chocolate and fruit. The fair trade handicrafts market generated revenues of $13.8m in 2002. It would not be surprising if this trend, which has come to the US slowly and steadily, grows exponentially in the future as a result of education and awareness.
World of Good Fair Trade Sourcing Criteria
As the standards in the fair trade industry are still evolving the criteria below are a work in process. We see ourselves as one of the entities that will help define these standards within our industry in partnership with other organizations and under the guidance of the Fair Trade Federation. If you have any input on these please contact us with your feedback.
- Ensure a fair wage in the local context to the artisan that crafted the product. (World of Good is currently constructing a reference table for this wage and a methodology for implementation with our supply partners.)
- Purchase from cooperatives, non-profit organizations or directly from the artisans whenever possible. If using an intermediary, ensure that a fair portion goes back to the artisan.
- Provide employment without discrimination and strive to create employment opportunities for women and the most disadvantaged communities.
- Ensure that all artisans have access to a safe and clean work environment, whether it is a workshop, a community meeting space or their own homes.
- Guarantee that no child labor is used for production, unless the entire family is involved in the craft and the children are still attending school.
- Engage in long-term trading relationships to promote sustainable economies. Increase economic stability by paying 50% upfront to underwrite materials and production costs.
- Follow environmentally sustainable production practices whenever possible: select local raw materials, harvest them sustainably and use renewable energy. Avoid processes that require artificial chemicals.
- Provide technical assistance, market information and product development support to the artisans.
- Maintain business practices that are open to public scrutiny and make every effort to be as transparent as possible.
- Reinvest a portion of World of Good’s profits to support and strengthen the social and economic conditions in the producer communities.
Please contact us if you have access to products that meet these criteria or if you have any questions about the guidelines - We would love to hear from you.
Fair Trade Resources
Fair Trade Federation (FTF)
FTF is an association of fair trade wholesalers, retailers, and producers whose members are committed to providing fair wages and good employment opportunities to economically disadvantaged artisans and farmers worldwide.
Transfair USA
TransFair USA, a 501(c)(3) nonprofit organization, is the only independent, third-party certifier of Fair Trade practices in the United States. Through regular visits to Fair Trade farmer cooperatives conducted by Fairtrade Labeling Organizations International (FLO), and partnerships with US companies, TransFair verifies that the farmers who produced Fair Trade Certified™ products were paid a fair price. In addition to coffee, TransFair has introduced Fair Trade Certified tea and cocoa to the US market.
Oxfam - Make Trade Fair Campaign
Oxfam International launched a major Make Trade Fair campaign in the spring of 2001. The goals of this campaign are to expose and change the severe inequities that exist in the international trading system
Fairtrade Labeling Organizations International (FLO International)
Based in Germany, FLO International determines what products will be labeled as fair trade. This is done using strict criteria to ensure Fair Trade standards, assess that a Fair Trade label will socially and economically benefit the producer, guarantee a living wage to the producers, and enforce the proper use of Fair Trade labels.
The International Fair Trade Association (IFAT)
The IFAT is a network of Fair Trade Organizations (FTOs) from all over the world. This includes over 220 FTOs in 59 countries. Whether the FTO is a co-operative, export company, wholesaler or retailer, all of IFAT’s members share the mission: “to improve the livelihoods and well being of disadvantaged producers by linking and promoting Fair Trade Organizations, and speaking out for greater justice in world trade.”
United Students for Fair Trade (USFT)
USFT is a collaboration of American and Canadian students raising awareness of fair trade. These students work with commodities and retail companies, NGOs and producers to inspire consumers to buy fair trade. USFT is involved in over 100 Fair Trade initiatives ranging from small markets to supermarkets and small colleges to medical schools.
