We have all seen the labels on products in the supermarket, or have read about a certain hotel or other business that uses fair trade products. But what exactly is “Fair Trade”?

We have all seen the labels on products in the supermarket, or have read about a certain hotel or other business that uses fair trade products. But what exactly is “Fair Trade”?

Fair Trade centers around both sustainable development and self-sufficient producers, recognizing hard-working farmers and workers in developing countries as well as the value of the product, establishing both environmental and labor standards. These standards are constantly reviewed and updated in accordance with changing conditions, while maintain a guaranteed minimum price for producers. Products are more expensive than conventional versions, but the price includes a premium to be invested in development projects.

While environmental, social, and economic initiatives are important, so are long-term and stable trading partnerships. Fair Trade prohibits materials that hinder quality, including various chemicals used as insecticides, herbicides, and so on. Although Fair Trade has been around for about 50 years, it has only gained a  foothold over the past 20. From the initial product, coffee, Fair Trade now includes a variety of items such as tea, rice, cocoa and chocolate, sugar, furniture, jewelry, housewares and more.

Small-scale farmers require fair prices, while other workers may need decent wages and adequate working conditions. As a result, there are various standards, depending on the type of product.

The Fair Trade Labelling Organizations International (FLO), a global network trying to change international trading conventions across Europe, North America, Japan, Australia, and New ZealandI, while there is also the Fair Trade Federation (FTF), which operates under a similar mandate but different logo. In each case, the same values are in place, offering equitable wages and compensation, as well as ensuring sustainable practices and allowing cultural techniques to be valued, preserved, and shared.