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| # Fairtrade | This topic is part of [[gt:economy|Economy & finance]]. |
| | ====== Fairtrade ====== |
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| ## What is Fairtrade? | ===== What is Fairtrade? ===== |
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| The Fairtrade movement is about getting a better deal for farmers and workers in the Global South, who produce many of the basic commodities we take for granted, like tea, coffee, sugar etc. ([even gold](https://www.fairtrade.org.uk/buying-fairtrade/gold/)). International trade has traditionally penalised the poorest and weakest producers, so Fairtrade aims to help break the cycle of exploitation by implementing fairer terms of trade and obliging companies to pay producers at or above the market rate. | The Fairtrade movement is about getting a better deal for farmers and workers in the Global South, who produce many of the basic commodities we take for granted, like tea, coffee, sugar etc. ([even gold](https://www.fairtrade.org.uk/buying-fairtrade/gold/)). International trade has traditionally penalised the poorest and weakest producers, so Fairtrade aims to help break the cycle of exploitation by implementing fairer terms of trade and obliging companies to pay producers at or above the market rate. |
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| <caption> | <caption> |
| Fairtrade Certification Mark. | _Fairtrade Certification Mark._ |
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| </caption> | </caption> |
| </WRAP> | </WRAP> |
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| ### History | ==== History ==== |
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| The first Fairtrade label appeared in the late 1980s in the Netherlands. More labelling initiatives began to appear across Europe and North America, culminating in the establishment of the Fairtrade Labelling Organization (now [Fairtrade International](https://www.fairtrade.net/)) in 1997 to unite the different initiatives and harmonise standards. Fairtrade International is an international non-profit composed of the UK’s [Fairtrade Foundation](http://www.fairtrade.org.uk/) and similar partner organisations around the world. The Foundation itself was established in the early 1990s by NGOs like Oxfam and the Women’s Institute to promote Fair trade in the UK. The producers that Fairtrade was set up to benefit have themselves taken on a greater role in the activities of the board and governance since 2002, and today have an equal say in running the global movement and 50% ownership of Fairtrade International. | The first Fairtrade label appeared in the late 1980s in the Netherlands. More labelling initiatives began to appear across Europe and North America, culminating in the establishment of the Fairtrade Labelling Organization (now [Fairtrade International](https://www.fairtrade.net/)) in 1997 to unite the different initiatives and harmonise standards. Fairtrade International is an international non-profit composed of the UK’s [Fairtrade Foundation](http://www.fairtrade.org.uk/) and similar partner organisations around the world. The Foundation itself was established in the early 1990s by NGOs like Oxfam and the Women’s Institute to promote Fair trade in the UK. The producers that Fairtrade was set up to benefit have themselves taken on a greater role in the activities of the board and governance since 2002, and today have an equal say in running the global movement and 50% ownership of Fairtrade International. |
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| <caption> | <caption> |
| Fairtrade coffee grower in Tanzania. | _Fairtrade coffee grower in Tanzania._ |
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| </caption> | </caption> |
| The Fairtrade certification mark first appeared in 2002, and works like [this](https://en.wikipedia.org/wiki/International_Fairtrade_Certification_Mark). Since then, many more countries have come on board. The basic labelling scheme remained largely unchanged till 2014, when the Fairtrade Sourcing Program was introduced for cocoa, sugar and cotton. This represented a major change in that it allows participating companies to source one or more specific commodities for use in a range of products, rather than all the ingredients in a specific product having to qualify as Fair trade in order to be awarded the mark. | The Fairtrade certification mark first appeared in 2002, and works like [this](https://en.wikipedia.org/wiki/International_Fairtrade_Certification_Mark). Since then, many more countries have come on board. The basic labelling scheme remained largely unchanged till 2014, when the Fairtrade Sourcing Program was introduced for cocoa, sugar and cotton. This represented a major change in that it allows participating companies to source one or more specific commodities for use in a range of products, rather than all the ingredients in a specific product having to qualify as Fair trade in order to be awarded the mark. |
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| ### How it works | ==== How it works ==== |
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| Fairtrade International runs the certification scheme and writes the Fairtrade standards which must be adhered to by producers to qualify for Fairtrade certification. The standards have a number of developmental pillars and vary depending on the commodity and group in question (e.g. the standard for gold is different to that for sugar). Standards are written in collaboration with producers with the aim of helping them work their way out of poverty. Producers are regularly independently audited to ensure they're sticking to the rules. | Fairtrade International runs the certification scheme and writes the Fairtrade standards which must be adhered to by producers to qualify for Fairtrade certification. The standards have a number of developmental pillars and vary depending on the commodity and group in question (e.g. the standard for gold is different to that for sugar). Standards are written in collaboration with producers with the aim of helping them work their way out of poverty. Producers are regularly independently audited to ensure they're sticking to the rules. |
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| <caption> | <caption> |
| Fairtrade coffee shops can be found in many towns and cities. | _Fairtrade coffee shops can be found in many towns and cities._ |
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| </caption> | </caption> |
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| ## What are the benefits of Fairtrade? | ===== What are the benefits of Fairtrade? ===== |
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| ### Personal / self-provisioning | ==== Personal / self-provisioning ==== |
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| Fairtrade is about changing the conditions of global trade, rather than self-provisioning – but it brings personal benefits to both producers in the Global South and consumers in the North. | Fairtrade is about changing the conditions of global trade, rather than self-provisioning – but it brings personal benefits to both producers in the Global South and consumers in the North. |
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| <caption> | <caption> |
| Fairtrade certified bananas from the Windward Islands. | _Fairtrade certified bananas from the Windward Islands._ |
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| </caption> | </caption> |
| </WRAP> | </WRAP> |
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| ### Environmental | ==== Environmental ==== |
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| Fairtrade standards stipulate environmentally-sound agricultural practices - responsible, sustainable use of natural resources like water, maintenance of soil fertility, minimal use of agrochemicals, good waste management, no genetically-modified organisms (GMO) etc. Fairtrade doesn’t necessarily mean organic, but the two often go hand in hand, and organic production is encouraged and rewarded by higher Fair trade minimum prices. | Fairtrade standards stipulate environmentally-sound agricultural practices - responsible, sustainable use of natural resources like water, maintenance of soil fertility, minimal use of agrochemicals, good waste management, no genetically-modified organisms (GMO) etc. Fairtrade doesn’t necessarily mean organic, but the two often go hand in hand, and organic production is encouraged and rewarded by higher Fair trade minimum prices. |
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| <caption> | <caption> |
| Fairtrade certification isn’t just for foods – it’s also for craft goods like these necklaces. | _Fairtrade certification isn’t just for foods – it’s also for craft goods like these necklaces._ |
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| </caption> | </caption> |
| </WRAP> | </WRAP> |
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| ### Community / decentralising power away from corporations | ==== Community / decentralising power away from corporations ==== |
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| Fairtrade provides a bit of extra money in the form of the Fairtrade Social Premium which goes into a communal fund to help locals develop projects and initiatives in their community. The main benefit though, is that it reduces (or at least attempts to reduce) the extraction of wealth from communities, which therefore reduces wealth concentration in the corporate sector, and its infiltration into the political system. This means that Fairtrade can help promote real democracy. | Fairtrade provides a bit of extra money in the form of the Fairtrade Social Premium which goes into a communal fund to help locals develop projects and initiatives in their community. The main benefit though, is that it reduces (or at least attempts to reduce) the extraction of wealth from communities, which therefore reduces wealth concentration in the corporate sector, and its infiltration into the political system. This means that Fairtrade can help promote real democracy. |
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| ### Criticism | ==== Criticism ==== |
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| There are two types of criticism of the Fairtrade movement. | There are two types of criticism of the Fairtrade movement. |
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| ## What can I do? | ===== What can I do? ===== |
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| Look for products carrying the Fairtrade mark in shops, cafés and restaurants, catering suppliers and wholesalers. Check the Fairtrade website to find out [where to buy](http://www.fairtrade.org.uk/Buying-Fairtrade), including from shops that are part of [BAFTS](http://www.bafts.org.uk/) (British Association of Fairtrade Shops) as they often have products that aren’t available in mainstream stores. If you can’t find the product you’re looking for, ask store managers to stock it; part of the success of Fairtrade is down to consumer-led demand. | Look for products carrying the Fairtrade mark in shops, cafés and restaurants, catering suppliers and wholesalers. Check the Fairtrade website to find out [where to buy](http://www.fairtrade.org.uk/Buying-Fairtrade), including from shops that are part of [BAFTS](http://www.bafts.org.uk/) (British Association of Fairtrade Shops) as they often have products that aren’t available in mainstream stores. If you can’t find the product you’re looking for, ask store managers to stock it; part of the success of Fairtrade is down to consumer-led demand. |
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| <caption> | <caption> |
| Fairtrade social premiums go towards funding benefits for local communities, such as schools. | _Fairtrade social premiums go towards funding benefits for local communities, such as schools._ |
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| </caption> | </caption> |
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| <caption> | <caption> |
| Just Things Fairtrade shop in Somerset. | _Just Things Fairtrade shop in Somerset._ |
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| </caption> | </caption> |
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| ## Further resources | ===== Forum ===== |
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| | This topic belongs to the section [[gt:economy|Economy & finance]]. You can ask questions or add information on the corresponding [Forum section](https://forum.growingthecommons.org/t/economy). |
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| | ===== Further resources ===== |
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| - [A response to criticisms of Fairtrade](http://lowimpactorg.onyx-sites.io/posts/fair-trade-criticism/) ([and another one](http://lowimpactorg.onyx-sites.io/wp-content/uploads/Evaluation_of_Fair_Trade_as_CSR_policy_-_final_draft_for_ORCA.pdf)) | - [A response to criticisms of Fairtrade](http://lowimpactorg.onyx-sites.io/posts/fair-trade-criticism/) ([and another one](http://lowimpactorg.onyx-sites.io/wp-content/uploads/Evaluation_of_Fair_Trade_as_CSR_policy_-_final_draft_for_ORCA.pdf)) |
| - [Fairtrade campaign action guide](http://lowimpactorg.onyx-sites.io/wp-content/uploads/Fairtrade-Campaign-Action-Guide.pdf) | - [Fairtrade campaign action guide](http://lowimpactorg.onyx-sites.io/wp-content/uploads/Fairtrade-Campaign-Action-Guide.pdf) |
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| ## Specialist(s) | |
| | ===== Related topics ===== |
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| | - [Co-operatives](coop:co-operatives) |
| | - [Commons economy](coec:commons_economy) |
| | - [Low-impact shopping](lish:shopping) |
| | - [Collaborative finance](cofi:collaborative_finance) |
| | - [Small is beautiful](smal:small) |
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| | ===== Specialist curators of this topic ===== |
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