Fairtrade - Global Fair Trade

Arises within the scope of fair trade and is mainly characterized by the guarantee it provides that raw material producers, including those in developing countries, maintain fair trade and adequate working conditions.
Founded: 2002
Sector: General

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Objective

The “FAIRTRADE” label is a guarantee to the consumer that raw material producers, particularly in developing countries, have benefited from fair and adequate conditions, contributing to the sustainable development of these communities.

Thus, promoting sustainable development and reducing poverty are the main objectives of this certification, which is based on a more balanced partnership between producers and consumers. These goals are pursued through the practice of fair pricing and the use of balanced environmental and social standards throughout the production chains.

This concept translates into responsible trade, which can only be achieved if, in addition to economic reasons, social and ecological responsibility is also considered.

Fair Trade is a system aimed at promoting sustainable development and reducing poverty through the establishment of fair prices, as well as balanced social and environmental standards throughout production chains. Practicing responsible trade means going beyond the economic scope and including social and ecological aspects (FAIRTRADE_Foundation, 2015).

Required Criteria
The FAIRTRADE certification mark was established in 2002 by Fairtrade International (FLO) and adheres to international fair trade criteria, which include requirements for protecting workers’ rights and the environment, payment of the “Fairtrade Minimum Price,” and an additional “Fairtrade Premium” to invest in business or community projects (FAIRTRADE, 2015).

The Fair Trade Criteria are defined by FLO, considering internationally recognized standards and conventions, mainly those of the International Labour Organization (ILO). These criteria (FAIRTRADE_Criteria, 2011) translate into a set of requirements that producers and traders must meet to obtain Fairtrade product certification, including:

Generic FAIRTRADE Standards – establish the requirements that producers and traders must comply with, regardless of the product produced or traded, to obtain Fair Trade certification.
Specific FAIRTRADE Product Standards – requirements that apply to a specific product category.

According to the “Fair Trade Glossary of June 28, 2011”: the “Fairtrade Minimum Price” (applicable to most products) is the minimum price buyers must pay to producers for a product to become certified according to Fair Trade criteria. This price covers the average production costs for producers and allows them access to product markets. It also acts as a formal safety system to protect producers from being forced to sell their products at excessively low market prices when the market price falls below the Fairtrade Minimum Price.

The “Fairtrade Premium” is an additional amount paid to producers, beyond the payment for their products.

Who Can Use the Certification?
The FAIRTRADE mark can only be used by entities that obtain FAIRTRADE certification (FLOCERT, 2015) and after approval by Fairtrade International, a National Fairtrade Organization, or a Fairtrade Marketing Organization. FLOCERT is the certification body that, by verifying compliance with FAIRTRADE standards, ensures that:

The standards applied to raw materials and products bearing the FAIRTRADE label are met.
Producers receive the Fairtrade Minimum Price and the Fairtrade Premium.

Validity
The FAIRTRADE certificate is valid for three years. The Fairtrade textile standard aims to define requirements for operators at different levels of the textile supply chain processing certified cotton, with the intention of: