October marks National Fair Trade Month in the United States: a month dedicated to raising awareness of the importance of fair trade, and the promotion of buying and using socially and commercially responsible products.

If you’re reading this , you’ve probably already heard of fair trade. Yet, despite the term’s ubiquity, its full meaning still eludes most of us, with the numerous fair trade entities — from certification bodies to national organizations and international networks — adding to the confusion.

Fair trade came about when it became clear that globalization and free trade facilitated the Global North’s exploitation of producers in the Global South, as corporations from the former capitalized on existing power imbalances to cut costs by outsourcing land, labor and other resources from the latter. With a global supply chain, it became impossible for anyone to know who or what processes had been involved in the production and distribution of the goods they were buying.

The fair trade movement attempts to address these inequities by setting standards for partnerships between businesses and producers to ensure transparency and guarantee the respectable livelihoods of those producers. Examples of such standards include minimum price guarantees for ingredients, no forced or child labour, organic production processes, and premiums being paid for local community development.

These are the basic principles of the fair trade movement

  • Long-Term Direct Trading Relationships… between end user and producer… between end user and producer
  • Payment of Fair Prices… which covers the cost of production, pays workers fairly, and leaves enough profit to reinvest
  • No Child, Forced or Otherwise Exploited Labor… by addressing the root causes of labor exploitation… by addressing the root causes of labor exploitation
  • Workplace Non-Discrimination, Gender Equity, and Freedom of Association… which grants the rights of workers to organize and bargain collectively… which grants the rights of workers to organize and bargain collectively
  • Democratic & Transparent Organizations… that empower small-scale producers and workers with a voice
  • Safe Working Conditions & Reasonable Work Hours… which protect workers rights
  • Investment in Community Development Projects… through fair trade premiums, for example\
  • Environmental Sustainability… such as organic farming methods or other additional work that values environmental stewardship
  • Traceability and Transparency… to both producers and consumers