• What is fair trade?
  

• Principles of fair trade
  

• Environmental impacts
  

• How to promote fair trade
  

• Where to buy fair trade products
  

• References
  

What is fair trade?

Fair trade is “a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade” (FLO International).  In other words, fair trade attempts to pay producers a fair price for their goods, adding an element of justice to conventional economic practices. 

According to the International Fair Trade Association (IFAT), fair trade began as a formal practice in the 1940s in the United States, when Ten Thousand Villages began a relationship with Puerto Rican needlework producers.  The first Ten Thousand Villages shop was opened in the late 1950s; at this time, in Europe, other organizations including Oxfam were establishing fair trade partnerships which supported small scale producers. 

During the 1960s and 70s, many fair trade organizations were started in the Global South, as well as in the North.  The organizations in the South focused on supporting small-scale producers, while the organizations in the North acted not only as vendors, but also to raise awareness of the inequalities in global trade.  Fair trade has been particularly important for women, as many fair trade shops specialize in the sale of handcrafts, which provide employment for women who otherwise might not have many opportunities (IFAT). 

In the 1980s, the idea of a “fair trade label” was introduced in the Netherlands, to identify fairly traded coffee.  The idea quickly became popular, and in 1997, Fairtrade Labeling International (FLO) was started.  FLO sets the standards for fair trade labels, and also is responsible for the certification of these standards (IFAT).  In Canada, the certifying body is TransFair Canada. 

In recent years, the idea of fair trade has become more mainstream, and some fair trade products are now available in many larger supermarkets.  Even President’s Choice recently came out with an organic fair trade coffee, certified by TransFair Canada. 

Transfair Canada Logo (image: www.transfair.ca)