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Fair Trade Federation |
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International Fair Trade Mark |
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World Fair Trade Organization Mark |
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Fair Trade Federation members are required to commit to the following nine principles in all of their transactions.
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- Create opportunities for economically and socially marginalized producers
- Develop transparent and accountable relationships
- Build capacity
- Promote fair trade
- Pay promptly and fairly
- Support safe and empowering working conditions
- Ensure the rights of children
- Cultivate environmental stewardship
- Respect cultural identity
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What is Fair Trade Clothing?
In theory, fair trade is a market based approach and social movement with the objective to help marginalized farmers and cottage industry producers in developing countries to get fair & reasonable prices for their crops and products such as hemp clothes, hemp hand bags and organic cotton t-shirts made by local artisans. Ironically, no universally accepted definition of fair trade exists, however, fair trade is perceived as a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade.
The movement works with farmers and co-op producers to ensure they are getting fair prices and in some cases better than average prices in the domestic market as well as overseas markets. This movement also advocates for higher social and environmental standards. It’s efforts are especially focused on exports from developing countries in Africa, Asia and Latin America to developed countries in USA, EU and others, in the market segment of coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, hand crafted hemp clothing, organic cotton t-shirts, recycled cotton or organic reusable bags and handicrafts made from indigenous raw materials.
History of the commercialized fair trade dates back to 1940s by religious groups and non-governmental organizations (NGOs). Ten Thousand Villages, an NGO and SERRV International were the first, in 1940s to develop fair trade supply chains in developing countries. The products, almost exclusively handicrafts ranging from jute goods to cross-stitch work, were mostly sold in churches or at the fairs. By 1968, newsprint publication, the Whole Earth Catalog, was connecting thousands of specialized merchants, artisans, and scientists directly with consumers who were interested in supporting independent producers, with the goal of bypassing corporate retail and department stores. The Whole Earth Catalog sought to balance the international free market by allowing direct purchasing of goods produced primarily in America and Canada, but also in Latin America and South America.
In recent years, products certified by Fair-trade certification have reached to a whopping US$4.98 billion. While this represents only a small fraction of world trade, some fair trade products account for 20-50% of all sales in their product categories in individual countries. Fair-trade branding has extended beyond food and fiber products in recent years. The response to fair trade however, has been mixed. Fair trade's increasing popularity has drawn criticism from the professional and political groups with some economists calling it a marketing ploy that impedes growth and in some cases manipulates the small farmers in developing countries. Fair-trade is also criticized for not adequately challenging the current trading system and as a result many small farmers and artisans in under-developed countries are not benefiting from the efforts of the Fair-Trade movement.
The Fair-Trade Labeling Organizations International (FLO) was created in 1997. This is an association of international producer networks that promote and market the “Fair -Trade Certification Mark” in their countries. The FLO labeling system is the most recognized standard setting and certification body for labeled Fair- Trade. It inspects and certifies producer organizations in more than 50 countries in Africa, Asia, and Latin America. However, only producing co-ops of farm and cottage industry products from certain developing countries are eligible for certification.
First fair-trade certification initiative was created in the Netherlands in 1988. The independent certification allowed the goods to be sold into the mainstream, reaching a larger consumer segment and boosting fair trade sales significantly. The labeling initiative also allowed customers and distributors alike to keep track of the origin of the goods and to confirm that the products were really benefiting the producers at the end of the supply chain. The first fair trade agricultural products were tea and coffee, followed by dried fruits, cocoa, sugar, rice and spices.
The Fair Trade Federation (FTF), created in 1994, is an association of Canadian and American fair trade wholesalers, importers, and retailers. The organization links its members to fair trade producer groups and provides resources and networking opportunities to its members
In 2002, FLO launched for the first time an International Fairtrade Certification Mark. The goals of the launch were to improve the visibility of the Mark on supermarket shelves, facilitate cross border trade, and simplify procedures for both producers and importers. At present, the certification mark is used in over 50 countries and on many different products, based on FLO’s certification for coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, herbs and spices, wine as well as sporting goods.
Fair Trade certified labeling in the United States is a certification system designed to allow consumers to identify goods which meet agreed standards. Overseen by a standard-setting body (FLO International) and a certification body (FLO-CERT), the system involves independent auditing of producers and traders to ensure the agreed upon standards are met. For a product to carry either the International Fair-trade Certification Mark or the Fair Trade Certified Mark, it must come from FLO-CERT inspected and certified producer organizations. The crops must be grown and harvested in accordance with the international Fair trade standards set by FLO International. The supply chain must also have been monitored by FLO-CERT, to ensure the integrity of labeled product.Fair-trade certification stands to guarantee not only fair prices, but also the principles of ethical purchasing. These principles include banning child and slave labor, guaranteeing a safe workplace and the right to unionize, adherence to the United Nations charter of human rights. It also stands for a fair price, a trade system that facilitates social development, and protection and conservation of the environment and greater transparency throughout the supply chain.
World Fair Trade Organization (WFTO) launched a new Mark in 2004 to identify fair trade organizations (as opposed to products in the case of FLO International and Fair-trade). Called the FTO Mark, it allows consumers to recognize registered Fair Trade Organizations worldwide and guarantees that standards are being implemented regarding working conditions, wages, child labor, and the environment. The FTO Mark gives definable recognition to all fair-trade organizations , amongst consumers, business partners, governments, and donors. The new Certification Mark is currently used worldwide (with the exception the United States). The Fair Trade Certified Mark is still used to identify Fair-trade goods in United States.
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