October is Fair Trade Month—a time to recognize the farmers, workers and communities behind the products we enjoy every day. Although I’ve seen the symbol on products, I knew very little about how fair trade works, so I decided to do some research. Read on to find out what I learned.

What is fair trade?

Vancouver’s Simon Fraser University (SFU) defines fair trade as “goods produced abroad that are traded according to more ethical and sustainable standards than typical standards in conventional trade.”

SFU’s website provides examples of reputable organizations and symbols you can trusted to uphold rigorous standards. Here are the two primary global organizations:  

• Fair Trade International is the most recognized global brand. You’ve likely seen their logo on grocery products. This global organization is made up of 1,896 producers representing over 2 million farmers in 67 countries including Canada, the United Kingdom, and the United States. Their rigorous certification process is independently audited to ensure high adherence to standards.
• World Fair Trade Organization is a global network of small and medium sized artisans, traders, wholesalers and retailers. The WFTO is active throughout 84 countries, impacting more than 1 million livelihoods. Guaranteed members fully adhere to a set of 10 fair trade principles.

Sadly, like greenwashing and pinkwashing, “fairwashing” is something to watch out for. SFU calls out Fair for Life and Fair Trade USA (not to be confused with Fair Trade America—a member of Fair Trade International) as two examples of organizations that claim to promote fair trade without adhering to stringent principles and standards.  

Fair trade principles

The principles of fair trade fall into three main categories: working conditions, environmental protection and sustainable livelihoods and communities.

Working conditions

Traditionally, companies exploited workers in developing countries and forced them to work in deplorable, unsafe conditions. Certified organizations commit to not using child labour or forced labour and to meeting defined health and safety standards for workers. Further, they commit to gender equality and women’s empowerment.

Environmental protection

Members of reputable fair trade organizations demonstrate respect for the environment in all aspects of their businesses—from reducing greenhouse gas emissions, to managing waste responsibly, and minimizing pollution. They also commit to responsible farming practices by eliminating pesticides and respecting wildlife and natural ecosystems. 

Sustainable livelihoods and communities

Fair trade organizations have a positive impact on the communities in which they operate. This starts with eliminating poverty and hunger by paying a local living wage. It also extends to funding development projects that increase access to education and other vital community services. Members of Fair Trade International, for example, fund community projects through a premium fund built into the pricing of their products.

And reputable organizations empower workers and farmers by giving them an equal say in how the organizations are run.

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Why fair trade matters

One of the greatest injustices of our time is the centralization of economic power in rich countries at the expense of poor countries. Governments and large corporations from rich countries have a history of exploiting workers in developing countries in the name of profit. And people living in developing countries feel the worst effects of our environmental crisis, yet they have done very little to contribute to it.

Fair trade is an important step to levelling the playing field and lifting developing nations out of poverty. As a consumer, every time you buy one of the more than 37,000 fair trade products on the market, you can feel confident that the product meets high ethical, environmental, and economic standards. And you’re contributing to a fair and just world.

Do you have a favourite fair trade product or brand? Drop me a comment below to tell me about it.