What is Fair Trade?

You may have heard us talk about, or even seen the Fair Trade label, floating around. But what does it really mean if a product is Fair Trade? Or a company is Fair Trade certified? Why is it important? At Color it Green, it aligns perfectly with our mission and values. When we seek out new brands and products to share with you, the Fair Trade Certified label is always an easy ‘yes’ for us!

Fair trade is a global movement made up of a diverse network of producers, companies, consumers, advocates, and organizations putting people and planet first. Fair Trade USA™ believes that everyone wants to do what’s right — for their families, fellow global citizens, and the planet. That’s why they’re committed to making the right choices the most obvious ones. Based on the simple idea that the products bought and sold every day are connected to the livelihoods of others, fair trade is a way to make a conscious choice for a better world. A choice for Fair Trade Certified™ goods is a choice to support responsible companies, empower farmers, workers, and fishers, and protect the environment. In other words, it’s a world-changing way of doing business!

Founded in 1998, Fair Trade USA is the leading 501(c) (3) nonprofit, third party certifier of fair trade products in North America. Fair Trade USA believes that all farmers and workers should have the opportunity to participate in the fair trade system, including workers employed by larger farms and farmers that are not part of organized cooperatives. In addition, Fair Trade USA works with farmers and workers in North America, including the U.S. As a result of their unique model, Fair Trade USA has expanded to certify more than 30 product categories, including dairy, quinoa, fresh produce, apparel, home goods, and seafood. Because of the increasing complexity of supply chains and the need for precise verification metrics and data, Fair Trade USA continues to innovate. They are leading the movement into the future by investing in technological innovation to elevate the transparency and traceability of certified supply chains.

Establishing goods or a business as Fair Trade Certified is how they achieve their mission. It’s an award-winning, rigorous, and globally recognized sustainable sourcing certification programthat improves livelihoods, protects the environment, and builds resilient, transparent supply chains. When you see a product with the Fair Trade Certified label, you can be sure it meets rigorous social, environmental, and economic standards.

That means:

  • Safe working conditions
  • Environmental protection
  • Sustainable livelihoods

In regards to social standards, Fair Trade does not allow exploitative child labor or any discriminatory employment practices. Their standards cover things like working conditions (such as having employment contracts), the ability for workers to organize and democratic voting as part of their membership. Their environmental standards aim to minimize producers’ impact on the planet, while still meeting them where they are both in terms of their geographical realities and their business growth. Their standards ban the use of dangerous pesticides and GMO seeds, protect natural resources and encourage eco-friendly cultivation. Fair Trade sets economic standards for manufacturers to more equitably distribute the benefits of trade. These include things like paying the ‘Fair Trade Minimum Price’ as well as the ‘Premium’, requiring traceability of the product through record-keeping as well as transparency in trade relations and providing pre-finance if requested by producers.

So why is it important to shop Fair Trade products? Shopping Fair Trade products is good for businesses, shoppers and the planet. Not only does the Fair Trade certificate add credibility to a brand, but it also strengthens supply chains and adds transparency. It also provides peace of mind in knowing that a business did their due diligence in finding an ethical and sustainable supply chain. Greenwashing is a real challenge and sifting through all of the false claims can be difficult and unnecessary. The green and blue Fair Trade label on products lets you know that specific products have been vetted to a high environmental, social and economic standards. Across the board, it’s a win-win for both the consumer and business!