What is Fair Trade: From the Postwar Period to a Global Movement
- Jessica Oyarbide
- May 15, 2024
- 3 min read
Have you ever wondered who made the clothes you wear? Who grew and harvested the food you eat? Under what conditions was the yerba mate or coffee you drink every day produced? Fair Trade is a movement that emerged from the recognition of the enormous injustices that exist in traditional commerce and proposed a commercial and productive alternative centered on respect, equity, and justice.
Every second Saturday in May, Fair Trade Day is celebrated to promote an alternative form of trade that puts people and the planet first. It's a month in which awareness and global outreach campaigns are launched to spread the word about this global movement.
While there is no single official, agreed-upon history of how and where Fair Trade originated, most sources agree that Fair Trade emerged after World War II as an effort to help communities undergoing reconstruction. Various religious organizations began promoting the manufacturing of products to provide economic opportunities for artisans and war refugees and raise awareness about their living conditions. Over time, these initiatives led to the creation of "world stores," where ethically produced products were sold.
Years later, OXFAM, one of the pioneering organizations of the Fair Trade movement, launched a "buy, don't aid" initiative, which sought to raise awareness among wealthier countries about their donation practices to less-developed countries and asked them to purchase ethical products instead of philanthropic donations. The various campaigns that sought to promote fairer trade led to the creation of organizations such as Ten Thousand Villages, which began importing handicrafts from producers in Latin American and Asian countries.
In the 1990s, the concept of fair trade gained momentum with the creation of certification programs, allowing certified products to be sold in mainstream stores. Fairtrade International was founded to establish uniform standards and brands. At the same time, the International Federation of Fair Trade (IFAT) developed a monitoring system to ensure the movement's credibility. Today, fair trade is embedded in consumer culture, with more than one million small producers and workers organized in over 68 countries. The movement continues to grow and participate in political debates and international forums to promote fairer global trade.
According to the World Fair Trade Organization (WFTO), "Fair trade is defined as a commercial partnership based on dialogue, transparency, and respect, seeking greater equity in commercial activity. It contributes to sustainable development by offering better trading conditions to marginalized producers and workers. In addition to its economic impact, fair trade combats poverty, climate change, and economic crises."
To be considered fair trade practitioners, organizations must adhere to ten principles, which provide an alternative trade model that puts people and the planet first.
These principles are:
Creating opportunities for economically disadvantaged producers: Fair trade seeks to provide opportunities for marginalized producers, helping them overcome poverty and promote sustainable development.
Transparency and Accountability: Fair trade organizations must be transparent in their operations and business practices, as well as accountable to their stakeholders.
Fair business practices: This involves an equitable and respectful relationship between all parties, including fair contracts and ethical business practices.
Payment of a fair price: Prices paid to producers must be fair and sustainable, allowing them to cover production costs and ensure a decent quality of life.
No to child labor and forced labor: The use of child labor or forced labor in any part of the production chain is strictly prohibited.
Commitment to non-discrimination, gender equality, and freedom of association: promotes equal opportunities and gender equality, working to eliminate discrimination in all its forms.
Good working conditions: Ensures safe and healthy working conditions for all workers, respecting their rights and well-being.
Capacity building: Promotes capacity building for producers and workers by providing them with educational and training opportunities.
Promoting Fair Trade: Raising awareness and advocating for fairer trading practices.
Climate action and environmental protection: seeks to minimize environmental impact through sustainable practices, promoting responsible resource management and waste reduction.
While there are organizations responsible for Fair Trade certification, any business or company can adhere to and advocate for its principles, promoting a more fair, sustainable, and responsible mode of production and consumption.
Although there are various organizations that certify Fair Trade, the main organizations promoting and certifying Fair Trade worldwide are WFTO (World Fair Trade Organization), Fairtrade International, Fair Trade Federation, Fair Trade USA, and Fair For Life.
If you need advice on Fair Trade certification or need more information, EKHOS supports the verification process for Social Enterprises under the People and Planet First label and has links to various certifying organizations worldwide. For inquiries, please write to jessica@ekhos.org , or visit our social media channels at https://www.instagram.com/ekhosorg or our website at https://ekhos.org/ .
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