DEFINITION OF FAIR TRADE

Definition of fair trade "Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South. Fair Trade organizations have a clear commitment to Fair Trade as the principal core of their mission. They, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade." They can be recognized by the WFTO logo.

What fair trade does…. Fair Trade is more than just trading: It proves that greater justice in world trade is possible. It highlights the need for change in the rules and practice of conventional trade and shows how a successful business can also put people first. It is a tangible contribution to the fight against poverty, climate change and economic crisis.

Fair trade model The World Fair Trade Organization (WFTO) constantly strives for innovative ways to make Fair Trade work for all producers, especially the economically marginalized producers in the South. The diversity of producers engaged in various products and production processes demands a robust Fair Trade system that gives them greater market recognition and credibility through an international guarantee system and brand.  Importers and wholesalers and retailers, too, benefit from our model. Our Guarantee System is a dynamic tool designed for all types of trading organizations. Businesses gain added-value to their brands and organization while helping realize the goals of Fair Trade.   Simply put, our Fair Trade model is open for organizations whose core activity is Fair Trade, focusing on improving the practices of organizations in the supply chain to follow the 10 Principles of Fair Trade. It is our firm belief that upholding the Principles of Fair Trade is a shared responsibility of all key actors, not solely the producer. The relationships between producers and their buyers, and between sellers and consumers are an important focus of our system. To ensure our members are on the right track, WFTO maintains a high Fair Trade standard implemented through the Guarantee System. WFTO members are obligated to comply with the criteria of our Standard and follow a Code of Practice in order to ensure our Principles are consistently in place in their daily operations. We insist on continuous improvement over time to encourage members to achieve the best Fair Trade practices. 

The Standard The WFTO Fair Trade Standard is the heart of the Guarantee System, focusing on the management and operation of Fair Trade Organizations in relation to their Fair Trade practices.   The WFTO Standard comprises a set of compliance criteria based on the 10 Fair Trade Principles and International Labour Organization (ILO) conventions. Many of these criteria are mandatory requirements to join WFTO. There are also other non- mandatory requirements, where WFTO members must show continuous improvement over time. A member is expected to apply the WFTO Standard and implement the requirements in a diligent and transparent manner, and constantly refine their Fair Trade practices. The aim of continuous improvement is to encourage the highest level of achievement for WFTO member organizations over time, with measurable advances in the way their organization operates. Compliance with this Standard will be assessed by various means, including the Self Assessment Report, the Peer Visit and the Monitoring Audit. These are described in the WFTO Guarantee System Handbook. The Standard is subject to periodic review and changes by WFTO’s Standard and Guarantee System Committee.