About Fair Trade

What is fair trade?

The fair trade movement is a global network of producers, traders, marketers, advocates and consumers focused on building equitable trading relationships between consumers and the world's most economically disadvantaged artisans and farmers.

What is a fair wage?

Producers receive a fair wage when they are paid fairly for their products. This means that workers are paid at least that country's minimum wage. Since the minimum wage is often not enough for basic survival, whenever feasible, workers are paid a living wage, which enables them to cover basic needs, including food, shelter, education and health care for their families. Paying fair wages does not necessarily mean that products cost the consumer more. Since fair trade organizations bypass exploitative middlepeople and work directly with producers, they are able to cut costs and return a greater percentage of the retail price to the producers.

What does "fair" really mean?

The word "fair" can mean a lot of different things to different people. In alternative trade organizations, "fair trade" means that trading partnerships are based on reciprocal benefits and mutual respect; that prices paid to producers reflect the work they do; that workers have the right to organize; that national health, safety, and wage laws are enforced; and that products are environmentally sustainable and conserve natural resources.

Products sold by fair trade organizations are often items like crafts. How can fair trade provide stability to producers if it's based on non-essential items?

Craft items often play an important cultural role in the society in which they're produced. Clothing, utensils, bowls, baskets, and ritual items are windows into the heart of a culture. As we embrace becoming citizens of the world, our appreciation for cultures other than our own is magnified.

Since the value of fair trade goods is so small compared with that of profit-oriented trade, isn't fair trade insignificant in its impact?

For a Peruvian weaving cooperative making only a few hundred dollars a year, a $1,000 craft sale to a fair trade organization is a significant increase in income. In some parts of the world, fair trade earnings are turned over to the community to improve quality of life. The money may fund a potable water system or provide health education or bring an adult literacy program to the community.

Do fair trade goods cost more than comparable non-fair trade goods?

Generally, fairly traded items do not cost more than other goods because the large percentage taken by middle people is removed from the equation. The cost remains the same as traditionally traded goods; however, the distribution of the cost of the product is different. In some cases, like coffee, the producers receive a significant price more per pound, and the price is higher than grocery store coffee, but comparable to gourmet coffees.