What is fair trade and why is it important?

So what is fair trade anyway? You probably hear the term a lot these days, but aren't exactly clear about the different labels and who governs them.

It is important to know that fair trade is NOT charity. It is a holistic approach to commerce aimed at setting up a sustainable marketplace, so that trade can empower the poor in developing nations.

Ever heard the old adage: Give a man a fish and feed him for a day. Teach a man to fish and feed him for a lifetime? It follows the same principles, creating sustainability and giving producers a sense of pride and their dignity back.

HERE ARE SOME SURPRISING FACTS...

International trade has increased sixfold since 1990, but the real price of most commodities like coffee, tea, cocoa, sugar and bananas has fallen by 30% over the last 20 years.

Tens of millions of farmers in developing countries are now trading at a loss as standard of living decrease rapidly.

If you have your doubts about fair trade becoming mainstream, take a look at the organic food movement. For years it plodded along, organic foods and goods only available at specialty stores. Recently, due to a high demand and many food scares, organic has taken off exponentially and is now quite mainstream with huge chains like Whole Foods Market having 279 stores in the United States, Canada and the U.K., and over 40 in the works.

Here is an explanation of what is fair trade, what it does, the principles it is based on and the many different types of fair trade labels, and groups that set the standards and laws for fair trade products.

What is fair trade is a simple question with a very complex answer. There are numerous ways in which fair trade impacts communities, including economics, women's empowerment, the environment, preserving cultural heritage, providing safe working conditions and protecting children. Unlike the conventional approach, fair trade is based on a partnership between producers and consumers. There are different types of Fair Trade labels.

So what is fair trade and why are there so many different labels? Let's see if we can sort it out.

There are FOUR international organizations out there who set the standards for all fair trade labeling groups.

These are the World Fair Trade Organization, the Fair Trade Labeling Organization International, the Network or European Worldshops and the European Fair Trade Association.

Then there are numerous smaller organizations who oversee standards for either producers, artisans, importers and sellers. I will cover some of the more common ones we see every day.

This is the organization that oversees and sets standards for most all of the other fair trade labels.

In the United States, bananas, cocoa, coffee, flowers, fruits and vegetables, honey, juices, mangoes, nuts, olive oil, pineapple, rice, seed cotton, sportsballs, spices and herbs, sugar, tea, vanilla, wine and other agricultural items.

In Canada, bananas, cocoa products (such as chocolate, syrups, baked goods, frozen desserts and drinks), coffee, cotton, flowers, honey, quinoa, rice, shea butter, sugar, tea, spices, sports balls, and wine.

---The Fair Trade Federation is a trade association that was founded in 1994 whose members are made up of American and Canadian wholesalers, retailers and importers. Members of the Fair Trade Federation are linked to fair trade producer groups that build sustainable partnerships to work together and alleviate poverty.

I hope I helped answer your question "What is Fair Trade?" and gave you a deeper understanding of the many organizations and labeling systems out there today.