What is the
difference between Fairtrade and Fair Trade?
The
term Fairtrade
is used to describe the certification and labeling system governed by FLO
designed to allow consumers to identify goods produced under agreed labor and
environmental standards.
The
term Fair
Trade is used to refer to the Fair Trade movement as a whole and can be
used to describe both labeled and unlabelled goods and the work of Alternative
Trade Organizations (ATOs), Fair Trade federations and networks such as IFAT,
NEWS, and EFTA etc. The term Fair Trade is a broader term often used to
describe one or many of the above, but can also occasionally be used to refer
to trade justice issues. In such cases, it can be as broad as to describe
general fairness in trade, such as tariffs, subsidies, worker rights and other
issues.
Fair
Trade certification is a market-based model of international trade that
benefits over one million farmers and farm workers in 58 developing countries
across Africa, Asia and Latin America.
Fair Trade
is sometimes used interchangeably with Ethical Trading, however, they are very distinct from
one another.
Ethical
Trading means companies are involved in a process of ensuring that the basic
labor rights of the employees of their third world suppliers are respected.
The FAIRTRADE Mark, applies to products
rather than companies.
The FAIRTRADE
Mark; Core Standards and practice behind the Five Guarantees;
- · Guarantees farmers a fair and stable price for
their products.
- · Extra income for farmers and estate workers to
improve their lives.
- · A greater respect for the environment.
- · Small farmers a stronger position in world markets.
- · Closer link between consumers and producers.
Roots of Fair Trade
can
be traced back to projects initiated by churches in North America and Europe in
the late 1940s. Their goal was to provide relief to refugees and other poverty
stricken communities by selling their handicrafts to Northern markets. Alternative
Trade Organizations (ATOs) offered higher returns to producers in the
developing world through direct trade and fair prices. In the US, ATOs such as
Ten Thousand Villages and Equal
Exchange, are worker owned co-operatives, formed to import Fair Trade crafts and coffee
to the US market.
In 1988, world coffee prices began a sharp descent,
triggering the birth of the first Fair Trade certification initiative.. The Netherland's Max Havelaar label
offered mainstream coffee industry players the opportunity to adopt a standardized
system of Fair Trade criteria.
Fairtrade Labelling Organizations International
(FLO) is the 'umbrella organization' that establishes Fair Trade
standards, globally for the industry using a multi-stakeholder process
involving
producers, workers, mission-based companies, conventional traders and
third party certification labeling
Initiatives like TransFair USA.
Which
products are Fair Trade Certified™ in the U.S.?
TransFair
USA began certifying coffee in 1998 and has since expanded to include tea and
herbs, cocoa and chocolate, fresh fruit, sugar, rice, and spices. TransFair is
currently investigating the potential to certify additional products. Fair
Trade Certified flowers, cotton, honey, sports balls, wine and beer are
available in the European market. TransFair does not certify handicrafts.
TransFair
does not certify COTTON.
Q. Are Fairtrade products organic?
A. Fair Trade
standards require sustainable farming techniques and offer price premiums for organic
production, However, Fair Trade certification does not guarantee that a product was
organically grown.
Fair Trade farmers are more likely to use sustainable, traditional growing
methods rather than apply agrochemicals,
and producer groups frequently use Fair Trade revenues to train members in
environmentally sustainable farming practices and to finance the cost of
organic certification. “FLO
encourages producers to work towards organic certification” (FLO, 2003).
Resources:
Redressing a Global
Inbalance: The Case for
FairTrade Certified Cotton
Source: Fairtrade
Foundation Briefing Paper
Fair Trade Garment Standards Feasibility Study
Source: TransFair
FLO
Fair Trade Foundation
TransFair
Oxfam
Currently The
United Nations “Least Developed” Countries are the only countries eligible for
Fairtrade certification.
Watch Fair Trade
the MOVIE here.
In Honor of Memorial Day 2008