Fair Trade International: What Is it and How Does it Work?

Editorial TeamEditorial Team
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October 31st, 2021
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6:17 PM

Offering an ethical alternative to conventional trade, Fair Trade works to assure consumers that the product they buy meets special social, economic, and environmental standards.

What is Fair Trade International?

Fairtrade International is responsible for setting sustainability standards to support producers in developing countries. The non-profit, multi-stakeholder organization is made up of member organizations worldwide. Responsible for FairTrade’s strategic direction, this part of the organization sets standards and connects disadvantaged producers and consumers.

Its purpose is to promote fair trading practices and empower producers from developing countries to combat poverty and strengthen their position in the global economy.

Working collaboratively with those who share this vision, Fairtrade believes that trust is a key component in its work. Transparency is of the utmost importance and the organization’s stakeholders are a vital element of the way they are held accountable for their work.

How Does it Work?

Fairtrade International develops and reviews the International Fairtrade Standards with which producers, exporters, and importers must comply, while FLO Liaison Officers help producers to become certified and develop market opportunities. Fairtrade certified producer groups are able to join associations known as producer networks that represent producers in Latin America and the Caribbean, Africa, and Asia.

There are a total of 19 labeling initiatives operating in 24 countries in Europe, North America, Japan, Australia, and New Zealand. Labeling Initiatives are national organizations that promote Fairtrade within the country and license companies to use the Fairtrade Mark on products.

Their compliance is inspected and carried out by FLO-CERT, an independent auditor owned by FLO which inspects producers and traders for compliance with Fairtrade standards. Among ethical labels, FLO-CERT is the only certification system that complies with ISO 65 requirements.

The Benefits of Fairtrade

By re-inventing the way we trade, Fairtrade changes lives by transferring wealth back to farmers from developing countries. Fairtrade is currency recognized all over the world as the most trusted label for sustainable trade for providing farmers with a decent income for their work.

More than a certification scheme, Fairtrade is one of the most diverse movements for global change. The organization currently works work over 1.7 million farmers and farmers, with a grassroots supporter base of up to 2000 Fair Trade Towns in 28 countries.

Fairtrade provides a decent standard of living for producers by setting minimum prices for all major commodities. Plus, the Fairtrade Premium plan provides additional funds for farmers and workers to invest however they see fit. Fairtrade farmers have received over €791 million in premium funds.

Striving to end poverty, Fairtrade is the only sustainability standard that is equally owned and managed by producers, with workers being protected by strong and transparent standards. The organization also helps women to set up their own businesses and trains them to take control of their own lives by becoming entrepreneurs.

Helping to fulfill the Sustainable Development Goals, Fairtrade’s main priority is to end poverty in all its forms. If your brand is serious about sustainability, Fairtrade is an independent and practical business partner. Giving consumers hundreds of labels to choose from, the Fairtrade seal provides the confidence to make responsible purchases.