What is Fair Trade?

Shawn Miller

May 15, 2025

What is Fair Trade?
Fair trade is a certification system that strives to meet standards for producing and supplying ingredients or products. It safeguards the rights of workers and farmers, including fairer pay and better working conditions. When you shop for fair trade goods, you can expect high-quality products produced ethically.

But what are these standards that make fair trade so valuable? This article will give you a deep insight into fair trade standards and their usability.

The Fair Trade Definition
Fair trade comprises a fair supply chain for sourcing crafts, foods, and drinks. It also ensures that small-scale producers, artisans, and farmers are treated with dignity and equality. The international trading partnership is based on transparency, respect, and dialogue to seek greater equity. This way, trading conditions can become sustainable. The fair trade movement was initiated in response to unfair trading practices and their negative results.

Fortunately, more consumers are now aware of the unfair practices involved in mass-produced goods, discounted products, and open markets. Thus, the fair trade movement has been progressing exponentially since day one.

What Are Common Fair Trade Standards?
Fair trade products must be produced by workers, co-operatives, or farmers meeting Fairtrade certification standards. There are currently over 11 international certifiers operating with their standards. Most of these requirements are similar with slight variations. Have a look at 10 common standards:

Creating More Opportunities
The producers of fair trade goods can become financially stable and independent. Additionally, economically disadvantaged and marginal producers can also benefit from more work opportunities. This way, poverty in developing countries may be reduced.

Decision-Making and Transparency
Fair trade producers should be involved in the decision-making process, and their views and suggestions must be considered. Also, the supply chain must be transparent to the consumers.

Fair-Trading Processes
The trading process should be just where fair trade producers’ environmental, economic, and social well-being is considered.

Fair-Price Payment
Producers must be paid a fixed fair price through mutual agreements. These prices and wages may vary for different locations.

No Child or Forced Labor
Sticking to the United Nations Convention on rights for children, underage children are strictly prohibited from working.

No Discrimination
Gender equality should be promoted, and women must be empowered economically. In addition, there should be no discrimination between workers and farmers. Businesses should also respect union rights and provide freedom to form associations.

Safe Working Conditions
According to the International Labor Organization conventions, workers and farmers should have a healthy and safe work environment.

Build Capacity
Fair trade seeks to build the skills of workers and producers to empower them. This way, they can prosper and improve their living standards.

Fair Trade Promotions
Fair trade with underprivileged communities helps them become more aware of their rights. Thus, fair trade seeks to promote greater justice.

Maximize Sustainability
Production and supply chain processes should be environmentally sustainable. This can be achieved using sustainable raw materials and energy to reduce pollution and waste.

How Can You Benefit Artisans and Farmers With Fair Trade Products?
Ever wondered who wove the tote bag you carry, or the gorgeous sweater you love to wear? These are highly-skilled artisans who prefer sustainability when crafting beautiful products. When you buy fair trade products, you can play your part in benefiting the artisans and producers in these ways:

Support Environmental Sustainability
Organic cotton produced under fair trade practices is sustainable for the environment. That’s because it includes minimal or no use of toxic chemical additives, agrochemicals, and harmful pesticides. When you purchase fair trade cotton products, you encourage fair trade farmers to produce more sustainable cotton through their environment-friendly techniques and natural additives.

Fair Prices
Workers and farmers producing our clothes and food items need to support their community and families. Additionally, they need funds to grow and expand their business and assets. Although they work hard all day long, drenched in sweat, to craft the best products for us, they receive an unjustified price for their skills.

You can ensure that these producers receive a fair wage by preferring buying these fair trade products from them. The good thing is that this price won’t be undercut by the extended supply chain of processors, retailers, brokers, exporters, and importers.

Empower Local Workers and Communities
By purchasing fair trade products like clothing items and bags, you can help organizations, communities, and workers involved in producing the goods to get a fair wage. This can be a significant step against practices that do not offer producers minimum wages for basic food, medical care, shelter, and education.

Therefore, when you select fair trade products, you directly empower workers and farmers to support their community and homes.

Invest in Building Communities
Fair trade producers receive a premium whenever you buy their products. This premium is dedicated to investments in building local communities. In contrast, several cotton producers can not afford basic living requirements, such as bathrooms and houses. They survive on traditional plantation techniques that involve child labor.

However, with fair pricing, you can ensure that producers can reinvest their revenue. You can also help these workers with access to healthcare, women’s training programs, leadership training, housing, and education.

Promote Partnership and Eliminate Exploitation
Fair trade practices do not necessitate a middleman, so they challenge bigger businesses. It is a way to involve communities in decision-making processes. This way, they can ensure they are not exploited and receive sufficient income against their resources and skills. Fair trade companies value the expertise residing in local communities and rely on it to produce exquisite products. They ensure that these goods are delivered and sourced sustainably.

Fair-trading involves long-lasting partnerships to invest in communities instead of traditional supply chain practices that mostly compromise sustainability.

Final Thoughts
Fair trade movement is a strategy to promote sustainable trading. The conventional production and supply chain methods left producers and workers with minimum to no funds. Hence, they were forced to overwork and survive without basic living requirements.

However, fair trade products and businesses ensure that farmers are no longer exploited and they receive enough returns to reinvest in their land. Fair trade also promotes using organic raw materials and energy to protect the planet for future generations.

Shawn Miller

Publisher

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