Fair Trade Federation Frequently Asked Questions What is fair trade?
Fair trade is a system that not only aims to pay fair wages, but also to support participatory workplaces; ensure environmental sustainability; supply financial and technical assistance; respect cultural identity, offer public accountability, and educate consumers about the choices that they can make in their regular shopping habits. Fair trade businesses foster long-term and direct relationships with producers in the developing world, because they know these connections are a highly effective way to help producers help themselves. Fair trade is not about charity; it uses a fair system of exchange to empower producers and to create sustainable development.
What does that really mean?
First and foremost, fair trade is about offering great products to the public. Consumers can choose fairly traded clothing, coffee, food, furniture, home décor, house wares, jewelry, tea, toys, personal accessories, and many other products.
Second, fair trade is about keeping prices affordable for consumers while returning a higher amount of the producers. This relationship is made by possible because fair trade retailers and wholesalers typically work directly with artisans and farmers. This cuts out the “middle men” who increase the price at each level and enables retail products to remain competitively priced in respect to their conventional counterparts, while fairly compensating producers.
Finally, because fair trade approaches development as a holistic process, it makes a tremendous impact on producer communities. Children’s school fees are paid, nutritional needs are met, and health care costs are covered – all by the producers themselves. The poor, especially women, are empowered and the local environmental impact is mitigated.
What kinds of goods are available fair trade?
Consumers can choose fairly traded clothing, coffee, food, furniture, home décor, house wares, jewelry, tea, toys, personal accessories, and many other products.
Do fair trade goods cost more than comparable non-fair trade goods?
Generally, fairly traded items don't cost more than other goods, because fair trade businesses work directly with producers, cutting out anywhere from 3 - 10 middlemen who raise the price along the way in conventional trading. The cost to consumers typically remains the same while a higher percentage of the price is returned to the artisans and farmers who made the product.
How much money (percent of sale price) do the artisans make?
Although the percentage varies depending on the product and vendors involved, about 15-30% of the retail price goes to the producer. The rest of the retail price covers the basic expenses of the importer and/or the retailer, such as rent, wages, and other costs of doing business.
Why is being 100% fair trade important?
Practicing fair trade is more than a marketing gimmick or casual gesture. Members of the Fair Trade Federation are fully committed to providing viable opportunities to their producers and to alleviating global poverty through fair trade.
For more information on Fair Trade, visit the Fair Trade Federation website.