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Fair trade is an internationally recognized relationship between trading groups which is founded on the principles of mutual discourse, transparency and respect. It strives to advance sustainable development by promoting more favorable trading conditions for the producers in less developed countries who are often exploited by their trading partners (such as international corporations). It advocates the rights of producers and workers, seeking to increase awareness and enact producer-beneficial changes in conventional international trade practices.

Fair trade ideologies include:

Encourage sustainable development by alleviating poverty and creating opportunities for marginalized producers who are disadvantaged by conventional trading practices.

Promote equitable and respectful relationships with producers by practicing transparent management and holding trading partners accountable for their actions.

Develop producers’ autonomy and increase their capacity to improve their marketing skills and access new markets.

Promote the establishment of fair prices that have been established through dialogue. A fair price is one that covers production costs and also enables sustainable and socially just production. Payment should also include the meeting of certain primary needs of the producers, such as education and health care.

Ensure that men and women workers are treated as equals. All individuals who participate in the production process are equally valued and compensated for their efforts regardless of gender.

Provide a safe and health work environment for producers. Children are not negatively impacted if they participate, and their right to well-being, education and play are respected.

Promote the development and practice of environmentally sound production methods. Producers are taught to apply responsible methods of production, which includes prohibiting the use of genetically modified organisms, and favoring organic farming methods.

Fairtrade Labelling Organizations (FLO)

Fairtrade (or Fair Trade Certified in the US) is a labeling designation that helps consumers identify goods which meet certain standards. Standards are set by FLO International and certifications are granted by a committee called FLO-CERT.

In order to carry one of the Fair Trade labels, a product must be approved by FLO-CERT, which ensures that the crops have been grown in accordance with the standards set by FLO International. These labels thereby indicate that the seller of the product has adhered to the above principles of the fair trade philosophy. The Fairtrade certification applies to many products including bananas, honey, coffee, oranges, cocoa, cotton dried and fresh fruits and vegetables, juices, nuts, rice, spices, sugar, tea and wine.