What is Fair Trade?

Fair Trade is an alternative way of doing business - one that builds equitable, long-term partnerships between consumers in North America and producers in developing regions. Fair Trade businesses commit to:

• Paying a fair wage in the local context.

• Offering employees opportunities for advancement.

• Providing equal opportunities for all people, particularly the most disadvantaged.

• Engaging in environmentally sustainable practices.

• Being open to public accountability.

• Building long-term trade relationships.

• Providing healthy and safe working conditions within the local context.

• Providing financial and technical assistance to producers whenever possible.

• These Fair Trade criteria were established by the Fair Trade Federation.

“Fair Trade” is about more than just paying a fair wage. It 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.

These Fair Trade criteria were established by the Fair Trade Federation.

How do I know that a product is Fair Trade?

It is important to know that the goal of Fair Trade is to empower low-income artisans and farmers to better their lives. This mission drives Fair Trade. Some Fair Trade products, like coffee and chocolate, are Fair Trade Certified™ and carry a label or "seal."

Fair traders of handcrafts work directly with artisans to guarantee Fair Trade standards. Fair Trade Organizations (FTOs, also known as Alternative Trade Organizations, ATOs) work with low-income artisans to market their products and build their businesses. FTOs, many of whom are members of organizations like the Fair Trade Federation (FTF) or the International Fair Trade Association (IFAT), adhere to Fair Trade criteria including workers’ pay, environmental practices, and good working conditions. When you purchase home furnishings, clothing, or crafts from FTOs, particularly those reviewed by national and international associations like FTF and IFAT, you can be certain that Fair Trade principles were respected. Consumers also know they have purchased a unique item representing not only the talent of the artisan–often a woman from a developing country–but also the culture and traditions of the source country.