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Fairtrade changes the way trade works through better prices, decent working conditions and a fairer deal for farmers and workers in developing countries.
Table of contents

Fair trade during that period was often seen as a political gesture against neo-imperialism: radical student movements began targeting multinational corporations and concerns that traditional business models were fundamentally flawed started to emerge. The slogan at the time, "Trade not Aid", gained international recognition in when it was adopted by the United Nations Conference on Trade and Development UNCTAD to put the emphasis on the establishment of fair trade relations with the developing world. By , the oversized 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 US and Canada, but also in Central and South America.

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In , the first worldshop opened its doors in the Netherlands. The initiative aimed at bringing the principles of fair trade to the retail sector by selling almost exclusively goods produced under fair trade terms in "underdeveloped regions". The first shop was run by volunteers and was so successful that dozens of similar shops soon went into business in the Benelux countries, Germany, and other Western European countries. Throughout the s and s, important segments of the fair trade movement worked to find markets for products from countries that were excluded from the mainstream trading channels for political reasons.

Thousands of volunteers sold coffee from Angola and Nicaragua in worldshops, in the back of churches, from their homes, and from stands in public places, using the products as a vehicle to deliver their message: give disadvantaged producers in developing countries a fair chance on the world's market. In the early s, Alternative Trading Organizations faced major challenges: the novelty of some fair trade products began to wear off, demand reached a plateau, and some handicrafts began to look "tired and old fashioned" in the marketplace.

The decline of segments of the handicrafts market forced fair trade supporters to rethink their business model and their goals. Moreover, several fair trade supporters during this period were worried by the contemporary effect on small farmers of structural reforms in the agricultural sector as well as the fall in commodity prices. Many of them came to believe it was the movement's responsibility to address the issue and remedies usable in the ongoing crisis in the industry.

In the subsequent years, fair trade agricultural commodities played an important role in the growth of many ATOs: successful on the market, they offered a much-needed, renewable source of income for producers and provided Alternative Trading Organizations a complement to the handicrafts market. The first fair trade agricultural products were tea and coffee, quickly followed by: dried fruits, cocoa, sugar, fruit juices, rice, spices and nuts. Sales of fair trade products only really took off with the arrival of the first Fairtrade certification initiatives.

Although buoyed by ever growing sales, fair trade had been generally contained to relatively small worldshops scattered across Europe and to a lesser extent, North America. Some felt that these shops were too disconnected from the rhythm and the lifestyle of contemporary developed societies. The inconvenience of going to them to buy only a product or two was too high even for the most dedicated customers. The only way to increase sale opportunities was to start offering fair trade products where consumers normally shop, in large distribution channels.

The independent certification allowed the goods to be sold outside the worldshops and into the mainstream, reaching a larger consumer segment and boosting fair trade sales significantly.

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The labeling initiative also allowed customers and distributors alike to track the origin of the goods to confirm that the products were really benefiting the producers at the end of the supply chain. The concept caught on: in the ensuing years, similar non-profit Fairtrade labelling organizations were set up in other European countries and North America. FLO is an umbrella organization whose mission is to set the Fairtrade standards, support, inspect and certify disadvantaged producers, and harmonize the Fairtrade message across the movement. 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 dozens of different products, based on FLO's certification for coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, honey, fruit juices, nuts, fresh fruit, quinoa, herbs and spices, wine, footballs , etc. With the rise of ethical labeling, consumers are able to take moral responsibility for their economic decisions and actions. This supports the notion of fair trade practices as "moral economies. These labeling practices place the burden of getting certification on the producers in the Global South, furthering inequality between the Global North and the Global South.

The process of securing certification is excessively burdensome and expensive. Northern consumers are able to just make a simple choice without these burdens and expenses. Consumers of fair trade products usually make the intentional choice to purchase fair trade goods based on attitude, moral norms, perceived behavioral control, and social norms. It is useful to include of measure of moral norms to improve the predictive power of intentions to buy fair trade over the basic predictors, like attitude and perceived behavioral control.

University students have significantly increased their consumption of fair trade products over the last several decades. Women college students have a more favorable attitude than men toward buying fair trade products and they feel more morally obligated to do so. Women are also reported to have stronger intentions to buy fair trade products. Producers organize and strive for fair trade certification for several reasons, either through religious ties, wants for social justice, wants for autonomy, political liberalization, or simply because they want to be paid more for their labor efforts and products.

Farmers are more likely to identify with organic farming than fair trade farming practices because organic farming is a very visible way that these farmers are different than their neighbors and it actually influences the way they farm. They place a significant importance on natural growing methods. Note: Customary spelling of Fairtrade is one word when referring to the FLO product labeling system, see Fairtrade certification.

Fairtrade labelling usually simply Fairtrade or Fair Trade Certified in the United States is a certification system designed to allow consumers to identify goods which meet agreed standards. The crops must be grown and harvested in accordance with the international Fair trade standards set by FLO International. Fairtrade certification purports to guarantee not only fair prices, but also the principles of ethical purchasing. These principles include adherence to ILO agreements such as those banning child and slave labour , guaranteeing a safe workplace and the right to unionise, adherence to the United Nations charter of human rights , a fair price that covers the cost of production and facilitates social development, and protection and conservation of the environment.

The Fairtrade certification system also attempts to promote long-term business relationships between buyers and sellers, crop prefinancing, and greater transparency throughout the supply chain and more. The Fairtrade certification system covers a growing range of products, including bananas, honey, coffee, oranges, Cocoa bean, cocoa, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea, and wine.

Companies offering products that meet the Fairtrade standards may apply for licences to use one of the Fairtrade Certification Marks for those products. The new Certification Mark is currently used worldwide with the exception of the United States.

Why Fair Trade is So Important

There is widespread confusion because the fair trade industry standards provided by Fairtrade International The Fairtrade Labelling Organization use the word "producer" in many different senses, often in the same specification document. Sometimes it refers to farmers, sometimes to the primary cooperatives they belong to, to the secondary cooperatives that the primary cooperatives belong to, or to the tertiary cooperatives that the secondary cooperatives may belong to [67] but "Producer [also] means any entity that has been certified under the Fairtrade International Generic Fairtrade Standard for Small Producer Organizations, Generic Fairtrade Standard for Hired Labour Situations, or Generic Fairtrade Standard for Contract Production.

In an effort to complement the Fairtrade product certification system and allow most notably handcraft producers to also sell their products outside worldshops, the World Fair Trade Organization WFTO launched in a new Mark to identify fair trade organizations as opposed to products in the case of FLO International and Fairtrade. Called the FTO Mark, [76] it allows consumers to recognize registered Fair Trade Organizations worldwide and seeks to guarantee that standards are being implemented regarding working conditions, wages, child labour, and the environment.

The FTO Mark offers Fair Trade Organizations including handcrafts producers definable standards which inform consumers, business partners, governments, and donors of the applicable trading standard.

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An alternative trading organization ATO is usually a non-governmental organization NGO or mission-driven business aligned with the Fair Trade movement, aiming "to contribute to the alleviation of poverty in developing regions of the world by establishing a system of trade that allows marginalized producers in developing regions to gain access to developed markets".

Alternative trading organizations are often, but not always, based in political and religious groups, though their secular purpose precludes sectarian identification and evangelical activity.

Philosophically, the grassroots political-action agenda of these organizations associates them with progressive political causes active since the s: foremost, a belief in collective action and commitment to moral principles based on social, economic and trade justice. According to EFTA, the defining characteristic of alternative trading organizations is that of equal partnership and respect — partnership between the developing region producers and importers, shops, labelling organizations, and consumers. Alternative trade "humanizes" the trade process — making the producer-consumer chain as short as possible so that consumers become aware of the culture, identity, and conditions in which producers live.

All actors are committed to the principle of alternative trade, the need for advocacy in their working relations and the importance of awareness-raising and advocacy work. The concept of a Fair Trade school or Fair Trade university emerged from the United Kingdom , where the Fairtrade Foundation now maintains a list of colleges and schools that comply with the needed requirements to be labeled such a university.

They must have a written and implemented a school-wide Fair Trade Policy.

Annex 7. Fair-trade schemes

The school or university must be dedicated to selling and using Fair Trade products. They have to learn and educate about Fair Trade issues. Finally, the Fairtrade Foundation requires that schools promote Fair Trade not only within the school, but throughout the wider community.

A Fair Trade University is one that develops all aspects of Fair Trade practices in their coursework. This push received positive reactions from faculty and students. To begin the process, the University as a whole agreed that it would need support from four institutional groups—faculty, staff, support staff, and students—to maximize support and educational efforts.

The University of Wisconsin- Oshkosh also offers many courses in many different disciplines that implement fair trade learning.

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They offer a business course with a trip to Peru to visit coffee farmers, an environmental science class that discusses fair trade as a way for cleaner food systems, an English course that focuses on the Earth Charter and the application of fair trade principles, and several upper-level anthropology courses make fair trade the center of the class. The University of California at San Diego understood the efforts of the Fairtrade Foundation in the UK, but they recognized they wanted to be more detailed about how their declaration as a Fair Trade University would make an actual change in the way on-campus franchises do business with the university.


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They also required constant assessment and improvement. The main premise of being a Fair Trade University for the University of California at San Diego is the promise between the university and the students about the continual effort by the university to increase the accessibility of Fair Trade Certified food and drinks and to encourage sustainability in other ways, such as buying from local, organic farmers and decreasing waste. Fair Trade Universities have been successful because they are a "feel good" movement.

The movement also has an established history, making it a true movement rather just a fad.