Saturday, February 6, 2016

Fair Trade: The What, How, & Why of Equal Exchange




Fair Trade is a popular term that is bantered about quite a bit in various circles.  You may have heard of the term previously, or perhaps this is the first time you are hearing the term.  Either way, many people do not quite understand what fair trade means and represents, as well as the benefits for both producers and consumers that this economic system creates.  This blog post is dedicated to presenting to you, the reader, what fair trade is, its importance to all parties involved, and how you can participate in the fair trade movement.

Fair trade, also referred to as equal exchange, is an economic system that seeks to foster equity in exchange between producers and consumers by ensuring producers are compensated fairly and properly for the work in the production of their goods.  This system is unlike the negative reciprocity that is common in capitalist societies where there is an expectation that one party receives a better deal than the other, who is disadvantaged in some way in the process.  Fair trade rejects this notion by encouraging fair and equitable exchange between producers and consumers. 


The concept of fair trade began in the 1940s and 1950s when small groups started a movement toward equitable exchange among small scale and indigenous producers around the globe.  These groups eventually came together to form the World Fair Trade Organization (WFTO), an organization that sought to spread the message of fair trade, as well as standardize the requirements of fair trade or equal exchange.  This work has created fair trade guidelines as they exist today, which focus on paying producers fair wages for not only their products but for the work that goes into their construction.  This is, however, only one aspect of the effects of fair trade.  Fair trade also focuses on the abolition of child labor as producers who participate in fair trade must not utilize in child labor.  Fair trade also deals in equitable and nondiscriminatory work place practices, encouraging producers to allow workers to join labor unions, work in safe and healthy environments, and not be discriminated against due to gender, sexual orientation, ability, religion, nationality, race, ethnicity, etc.  Finally, fair trade organizations work with producers in utilizing environmentally sustainable practices, which assists not just in the improvement of the global climate but also allows producers to produce longer as the local resources are not depleted at a rapid rate.  In addition, fair trade organizations also pay Community Development Premiums, which are separate fees that goes into a communal fund that is utilized to educate workers and their children, foster social equality within the local communities, and invest in community development and environmental sustainability.

Fair trade organizations have been diligent in making fair trade products available to consumers in various different venues.  In the past, fair trade products were typically available only in small stores, making them inaccessible to large portions of the population, but today fair trade products are available in many different places, ranging from small independent stores to large mainstream retailers.  Many larger corporations are also subscribing to fair trade and purchasing from fair trade organizations.  You can spot fair trade products by the label on the product, which will typically identify it as a fairly traded product (Figure 1).  You can also find out where to purchase fair trade products by visiting many of the websites noted in the references section as they often identify which retailers and corporations serve fair trade products, most of which are priced comparably to non-fair trade goods.

Figure 1: Examples of Fair Trade Labels (not comprehensive)

So if you wish to make a positive impact in your community and/or globally look into fair trade.  There are several different fair trade products, ranging from food goods to clothing brands, meaning there are multiple different ways one can subscribe to fair trade.  By purchasing fair trade you are assisting in making the world a more fair and equitable place, which ultimately benefits everyone.   

References Cited

Buy Fair.  Be Fair.  http://befair.org/

Equal Exchange.  http://equalexchange.coop

Fair Trade International.  www.fairtrade.net


Ten Thousand Villages.  http://www.tenthousandvillages.com/fair-trade/   

World Fair Trade Organization.  http://wfto.com

28 comments:

Christine Jackson said...

I think that fair trade used to be when people traded and it was not for the same economic amount. Until the World Fair Trade Organization was created to insure that everyone whom was trading is trading equally among others. I believe it makes sense that the trade was in small stores and everyone was able to get to that store based on location. Now in the 21st century people from all over the world are able to obtain objects such as clothes, cars or even furniture. Also fair trade is great way of having equality because people are not limited to a certain things based on race or of the sort.

Margaret "Charlie" Goggin said...

I am very glad you posted this on the blog! We often purchase fair trade items as gifts for friends and family. It feels good to know someone far away is being properly compensated for their labors and talents while reducing the exploitation of children.

I am a yarn nut, and there are many amazing varieties of fair trade yarns to choose from even if this makes narrowing my list down to jut a few varieties difficult! They are often pricey, but when I am making gifts for others I feel like I am also giving to some woman in another country and culture by purchasing the product of her labor.

These organizations are a step toward greater equality and improved standards of living for people around the globe. I hope this movement continues to grow and spread for the future of less privileged people everywhere.

Margaret "Charlie" Goggin

Skywacker said...

After reading this post, I now know that I did not really understand what Fair Trade actually meant. I liked a lot of what I learned but especially that Fair Trade means, no child labor, fair, equitable and non-discriminatory work places including the ability to form a labor union, and that they have to give back to the community. There are certain labels that I look for when shopping like Made in USA and NON-GMO Project Verified and now I can add Fair Trade to the list.

Sky Dwinell

Champagne James said...

Before reading your blog I did not understand the real meaning of Fair Trade. In my mind I thought it just meant I am going to give you what you gave me or something along that line. But now after reading this I learned that Fair Trade is something WAY different.Now I know that Fair Trade does not mean anything like that it means, giving back to the community, no child labor which is a every good thing. I also learned that it means non-discriminatory work places. I now believe that Fair Trade in a general it means be a good person, you know right from wrong, make others feel good to!

Champagne James

Anonymous said...

I never knew what Fair Trade was. I was thinking in the general nonfiction such as if you buy me lunch one day I will return the favor next time. I found this blog very interesting. The concepts of Fair Trade is something I find very positive for the community. Such as no child labor, healthy working conditions, and no discrimination. I will keep in mind the different stores that I can go to that use Fair Trade. Hopefully this becomes a much bigger systems to bring positiveness into the community.

Leslie Milton
Anthropology 101
Course 3001

Unknown said...

Like most of the above commenters, I also did not know the meaning or extent of the term "Fair Trade". When I think of fair trade I think of a farmers market type setting with a lot of negotiating and trading. After reading this blog I also agree with Leslie that fair trade will bring positivity to the community.

Kevin Izykowski said...

I never heard the concept of "Free Trade" until I read this post. I suppose this is where Non-discriminatory practices and child-labor laws came from. I believe that workers should be working in healthy conditions (Which led to the creation of OSHA, which regulates safety hazards in the workplace). I also believe that artists and musicians should be properly compensated for their work. For example, if a musician wants to put their music on spotify, then that service should properly compensate that musician.

Dr. Christine Elisabeth Boston said...

Kevin, the labor guidelines you speak of actually are due to the implementation of labor unions, who instituted the 8 hour work day, fair wages, safe workplaces, no child labor, etc.

C. Medrano said...

I believe that it's our duty to social responsibility to make ethical purchases. The film "Blood Diamond" is always on my mind when thnking about the impact that diamond mining has.

Before this post,I was under the impression that cocoa was the only product regulated by this scheme. I think it's great that the Fairtrade program exists for an extensive variety of products. I'm glad to learn about the economic, social, and environmental development that is seeks to impulse. It would be brilliant to see a program like this in effect for the NAFTA region.

Unknown said...

Ah man that film was awesome/sad. I think that's the only film I like DiCaprio in. But hey most businesses only follow one law; the survival of the fittest. In the diamond trade there the dealers like to turn a blind eye on how they get the diamond. And if it's someone in the black market they won't even care how you get the item you've given them.

Katienaomi Camacho said...

Fair trade never heard of it! Let alone new what stores they were sold in, after this post I have been given an understanding what it is and it honestly awesome because I have bought these products and visited whole foods often with out knowing I was doing something good for earth, that makes me all happy!

Unknown said...

there is a lot to the concept of fair trade. I agree that people should be paid an appropriate amount for the labor or product that is provided. a great deal of this is addressed in the US with the Fair labor standards act and OSHA for the safety aspect. Unfortunately, we as a culture want a lot of high quality goods for a low price. this is why companies go to foreign countries for the production of the product. being a farmers kid, I got to see first hand how the demand for cheap good can effect a family. In my opinion the best way to have fair trade - is to buy locally from local producers where ever you can. don't complain when the price per pound is higher than Walmart. we have to get past this hypocrisy of wanting something awesome for nearly nothing.

Anonymous said...

I've heard of fair trade and I knew what it meant, but I never knew that made it an organization. I think fair trade is an good thing when it comes to trading anything but there's a lot of people who would rather get good thing than give.
Aaliyah Caldwell

Zachary Dickherber said...

I have heard of fair trade from YouTube, TV and I’ve also read about it but never really giving it a lot of thought whenever I heard about it my mind just wondered off while they described it or just skipped a page but I do like the concept of fair trade.

kelechi Anunobi said...

Is fair Trade the same thing as Trade fair, because i know that it has to do with producers and consumers.it is away of introducing new product to the public, which also deals in equitable and exchange of small scale and indigenous producers around the globe.

Unknown said...

I had never heard of Fair trade before this but it makes sense and would be great if we could get it to work.

Unknown said...

I have never heard of the fair trade so this post opened up my eyes to a new area of American society. The fair trade being an organization was a big surprise to me an really explained a lot of how the system works.

D.Traywick said...

I've always liked the concept of fair trade and feel as thought it is still a meaningful exchange to this day.

Anonymous said...

Tiffany Heavens
- I always thought that fair trade was just a saying I did not know that it was an actual thing. This post has enlighten me on this subject and I would be interested in knowing more about.

Unknown said...

Fair trade is a good way to build the community up. This is my first time hearing about it but for now on i will be using fair trade.

Olivia Rios said...

I like how fair trade makes sure that there's no discrimination based on race, gender, etc. That means more equal opportunities for everyone which is always a good thing. I also think that no child labor is safer because children don't belong in the workplace. Many people used to get hurt while working because of the unsafe conditions, fair trade has really helped in so many ways that I've learned from reading this article.

Anonymous said...

I learned about fair trade in my history class last semester. I agree witht he fair trade, because it gives everybody equal rights. I dont agree with children being placed into the work force. I'm glad that has changed throughout the years.

-Daisha Benton

Unknown said...

I never thought that a fair trade was an actual thing. Great fact to know.

Apre'shana Page said...

I like the fact that fair trade focuses on the abolition of child labor. Child labor was a huge issue and still is in certain parts of the world. It isn't fair for a child to have to give up their childhood to take on adult responsibilities.

-Apreshana Page

Tonii Saffore said...

My name is Tonii Saffore. I think fair trade was a really great idea, for the past and also leading up to the future of equal exchange. I also think it was good that they decided to eliminate child labor. I don't think a product is important enough to put a child in such danger and suffering. I would definitely support fair trade products, mainly because of its contribution to the fairness in the community.

Unknown said...

Fair trade sounds like a fantastic way of living. I think it is great that it eliminates discrimination of all forms and contributes a great amount to the community. This was a very informative read and I am so happy I got to learn about it.

Kahla Perry

Anonymous said...

Before reading this article I thought Fair Trade just meant equal exchange. After reading this article I now know that it could mean so much more. It could mean equal exchange,child abolition,payment of producers &etc.. I'm glad i gained more information on this subject.
-Jasmine Busby

Anonymous said...

I really support fair trade because it would not only benefit you, but it could benefit someone else as well. I also like the goals of fair trade and the rules that people were forced to abide by.

Mya Bursey