What is Fair Trade?

Workers in NepalFair Trade in Europe started as a grass roots movement 40 years ago with the aim of alleviating poverty by building direct and sustainable working relationships with disadvantaged producers in Africa, Asia, Latin America and the Caribbean; enabling them to have fair access to developed markets.

Fair Trade today has the same aims and is growing as a recognised market alternative.

Fair Trade guarantees a fair price to farmers and producers, at least the minimum “living” wage, irrespective of how low the international price falls. Fair trade trading partnerships work with vulnerable and disadvantaged groups in the developing world to offer sustainable development programmes, a chance for a better future, to live and work with dignity not in charity. Fair Trade also offers a social premium to support community development programmes, contributing towards building sustainable communities, the construction of schools, healthcare projects and sanitation schemes.

What are FAIR TRADE principles?

“Fair Trade is a trading partnership based on dialogue, transparency and respect, that seeks greater equity in international trade. It contriutes to sustainable development by offering better trading conditions to and securing rights of, marginalized producers and workers”.

IFAT (International Federation of Alternative Trade).

  • Fair Trade is a partnership between producers and consumers which ensure producers receive good working conditions and fair prices throughout the supply chain.
  • Paying fair prices to the producers which reflect the true cost of production - world market prices often do not cover even the cost of the raw materials
  • Providing credit when needed to allow orders to be fulfilled and to pay premiums to be used to provide further benefits to producer groups.
  • Supporting producer organisations in their social development projects - many provide health and education facilities through the Social Premium
  • Promoting the empowerment of women
  • Advising on product development to increase access to markets
  • Encouraging environmental responsibility & sustainable projects
  • Committing to long- term relationships and tradinding partnerships to provide stability and security  rather than a short-term commercial advantage
  • Campaigning to highlight the unequal system of world trade
  • Transparency of business practice
  • Mutual Respect with all our partners and producers
  • Justice for all involved in the production and supply process, trade and sustainability not aid.

The Fairtrade Mark

You will know the Fairtrade mark at the foot of this page. Designed by the Fairtrade Labelling Organisation (FLO) for certain products- food: bananas, cocoa, coffee, cotton, dried fruit, fresh fruit, fresh vegetables, honey, nuts, oil, seeds and puree quinoa, rice, spices, Sugar, Tea and Wine and some non-food products including cotton, cut flowers, ornamental plants & sports balls.

There are some products which are not eligible for the mark. Hence it is important for suppliers like ECO CHIC Fair Trade to carry products from reputable sources and that is the importance BAFTS (British Association of Fair Trade Shops) and IFAT (International Fair Trade Association) and the SA8000 Certification hold for us as they are the regulators of Fair Trade organisations in the UK and Internationally. IFAT has its own Fair Trade Mark for organisations adhering to Fair Trade principles.

Why buy FAIR TRADE goods?

Fair Trade means to trade goods produced in developing countries for a fair price. When purchasing Fair Trade products, we create job opportunities for rural people in developing countries in Asia, South America, and Africa and by doing so help them to achieve economic independence and to better their lives.

Fair trade is more effective and sustainable than aid or charity. It directly contributes to the development of a sustainable future based on producers’ own skills and resources, rather that creating an ongoing dependency on handouts. No trade system is perfect and Fair Trade does not claim to be the complete answer to poverty. What it does do is offer those marginalised in the developing world the opportunity to produce goods through sustainable programmes and not through charity.

Fair Trade products are created by motivated and rewarded workforces, who are set to gain from the quality and uniqueness of their work. There are no production lines or child exploitation. Each product has been created with time invested in it and hence a better quality product often using traditional skills.
It’s a win-win situation!

In essence when we buy Fair Trade goods we are aiming to support the imbalance of wealth in the world.

Some World Statistics:

  • 1 billion children living in poverty (UNICEF)
  • 1.2 billion People living on less than a dollar a day (UNICEF)

There are so many success stories, here is an inspirational story of how Fair Trade works:

Nicaraguan Fair Trade coffee grower Bertilda Gamez Perez says:

“There are big advantages…We get more money for our crop. We didn’t make enough money to live on before. Now we get a better price and the money comes directly to us. I can buy more food. I can help support my daughter at University…and take care of my son”

Cited in 50 Reasons to Buy Fair Trade, Livintoff & Madeley 2007, an invaluable resource for those interested in Fair Trade.