The fair trade movement exists because terms of trade are often unfair. This puts producers all over the world in disadvantaged positions.
How it Works
Fair trade is an alternative approach to conventional trade, based on partnerships between producers and consumers. When farmers sell their products through fair trade, they receive a minimum price, improved terms, and a social premium that brings them the opportunity to improve their lives and plan for their future.
Fair trade offers consumers a powerful way to reduce poverty through our everyday purchases. Fair trade also helps us better understand where our products come from.
There are distinct sets of standards that ensure basic labour rights are respected for farmers organized in co-operatives, hired workers, and independent artisans.
In the fair trade system businesses pay a minimum price and an additional premium, which is used to help fund education, healthcare, infrastructure, and business-improvement projects in the producers’ communities. The producers form committees to decide how to spend the premium.
Fair trade in the bigger picture
Fair trade supports the UN’s Sustainable Development Goals, addresses climate change through improved agricultural techniques and encourages business practices that reduce poverty for producers in the global south.