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what is Fairtrade?

It sounds veeeery similar to Fair Trade but there are slight differences between them...

We use the term Fair Trade to refer to a broad, global movement which strives for social justice among North and South countries. It does so by establishing commercial bonds based on mutual respect, transparency and long-term commitment. There is a beautiful and inspiring definition which includes all of this. Occasionally, Fair Trade may be referred to as Alternative Commerce.

On the other hand, Fairtrade is a huge part of it. This term is about a certification label granted by the Fairtrade Labelling Organization International, (aka FLO) through its national initiative licensees.

After this distinction, it goes without saying that not all Fair Trade products are FLO labelled ones. In fact, to gain the certification, the product has to meet the quality standards set for it by labelling organizations as well as the social targets set for the producing organization; both of them are regularly assessed for compliance.

This certification label is behind the big bang of Fair Trade sales volume, but it is not free from some controversy: some Alternative Trade Organizations (ATOs) see it all too inclusive to mainstream retailers.

As of October 2007 FLO has published quality and price standards for 17 products. Even towns can be assessed to gain a certification! (tough not for their sale, of course).

some goods. Photo by Timo

As said, the touchy issue is that FLO label items have been such an economic success that now, most of Fair Trade sales volume corresponds to it. This is a worrying tendency for the future because the actors in one and another type of markets are quite different.

FLO certified items can be sold anywhere, from large retailers to vending machines, while unlabelled Fair Trade goods are only found in World Shops. The former is a huge, more commercial market while the latter is more linked to values and mission-driven ATOs. The fact is that mainstream retailers can be as far as they want from Fair Trade principles and still sell certified items, which may dilute the initial spirit of the movement or, at least, create the illusion of playing at the same level as World Shops.

In May 2007 large producer organizations have become part of FLO governance; this could trigger some kind of review of the use of the certification label.

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