Fair Trade labels are showing up on products everywhere from grocery stores to Starbucks.  But what exactly is Fair Trade?  How does it benefit the suppliers and how can you tell if a product you are buying is actually Fair Trade Certified or just a load of “Tradewash”?  This article will give you the bare bones version with links at the end  if you are interested in learning more.

What is Fair Trade?

Fair Trade is the label for a movement that includes the following goals:

1. To help marginalized workers get a higher price for their products so that they can become economically stable.
2. To set standards of production for those products.
3. To help those workers become more involved with the international sales of their products.

So basically, Fair Trade cuts out the middle man.  It allows Fair Trade workers to get their products to the market more efficiently and therefore get a higher price paid directly to them.

According to Fairtrade Labelling Organizations International, as of 2008, “more than 1 million producers and workers in 58 developing countries now benefit from global Fairtrade sales”.  The FLO also estimates in their 2008-09 report that with the number of dependents per worker, the total number of people be affected by Fair Trade has reached approximately 5 million.

Visual Learner?  Watch the video:

How Can I Tell if Something I Buy is Actually Fair Trade Certified?

In order for a product to receive the Fair Trade label, it has to meet several qualifications, including:

1. Any crops must be grown and harvested according to standards set by FLO International.
2. Products must come from a FLO-CERT certified organization.

When you buy a Fair Trade certified product, you know that:

1. No child or slave labor has been used
2. There has been an effort in conservation and the protection of the environment
3. Workers involved have been given the right to form Unions.
4. The workers have also been paid an additional sum which is to be invested in development (like education)
5. Workers have been paid a price for their product to cover “sustainable production”

To see a full list of the certification standards, visit the Standards page of the FLO.

When looking at a product, these are the labels that you should look for:

Okay, I’m interested.  Where can I go to learn more?

Fairtrade Labelling Organizations International (FLO)

World Fair Trade Organization (WFTO)

FLO-CERT

The Wikipedia Article (very well written and documented!)