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Fair trade, by this definition, is a trading partnership based on dialogue, transparency and respect, that seeks greater equity in international trade. Fair trade organizations, backed by consumers, support producers, raise awareness and campaign for changes in the rules and practice of conventional international trade. [3]
Fair trade is a social movement to help producers in developing countries achieve better trading conditions. Fairtrade or fair trade may also refer to: World Fair Trade Organisation, a global community of verified Fair Trade Enterprises; Fair trade law, a law in the United States permitting manufacturers to specify a minimum retail price
The Fair Trade Federation does not certify individual products, but instead evaluates an entire business. The FTO Mark, launched in 2004 by World Fair Trade Organization, and identifies registered fair trade organizations. UTZ Certified is a coffee certification program that has sometimes been dubbed "Fairtrade lite". [17]
Members of the fair trade movement advocate the payment of higher prices to exporters, as well as improved social and environmental standards. The movement focuses in particular on commodities, or products which are typically exported from developing countries to developed countries , but also consumed in domestic markets, most notably ...
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The fair-trade system is inefficient at transferring coffee consumers’ goodwill to producers. Direct trade is probably more efficient and sustainable than fair trade. Artificially stimulating more coffee production keeps coffee growers poor, because overproduction makes the prices fall on the world markets.
Fairtrade International was established in 1997. It set private standards relating to labour, cooperative organisation, and the governance of the Fairtrade benefits. The organisation was divided in January 2004 into two independent organisations: [5]
The Fair Trade Association of Australia and New Zealand (The Fair Trade Association) is a member-based organization that supports two systems of fair trade. The first is the Australia and New Zealand member of FLO International, which unites Fairtrade producer and labeling initiatives across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.