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
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