Fair trade is a term that has become increasingly popular in recent years, with more and more consumers seeking out products that are ethically sourced and produced. But where did this movement start, and how did it come to be so influential? Fair trade has its roots in the post-World War II era, when a group of activists began advocating for better working conditions and fair wages for farmers and producers in developing countries. Over time, this movement grew and evolved, with organizations like Fairtrade International and the World Fair Trade Organization working to promote fair trade practices and educate consumers about the impact of their purchasing decisions. Today, fair trade has become a global movement that is changing the way we shop, with more and more people recognizing the importance of supporting ethical and sustainable businesses. In this article, we'll take a closer look at the origins of fair trade and explore how it has grown into the movement that it is today.
The Origins of Fair Trade
The fair trade movement can be traced back to the 1940s, when a group of activists began advocating for better working conditions and fair wages for farmers and producers in developing countries. These activists were concerned about the exploitative practices of large corporations, which often paid farmers and producers very low wages, even as they profited from their labor. In response to these concerns, the activists formed cooperatives and began selling their products directly to consumers, bypassing the middlemen who often took a large cut of the profits. One of the earliest pioneers in this space is considered to be Edna Ruth Byler who bought fine embroidery from the women of La Plata, Puerto Rico and started selling those in the USA. She discussed the story behind each piece with the end consumer and how the makers back in Puerto Rico were living a better life due to the purchase they made. SERRV was another player in this area. Established as a non-profit in 1949, it started by helping displaced European refugees trade their handcrafts for income after the Second World War.Over time, this social movement grew and evolved, with more and more cooperatives forming and more consumers becoming interested in purchasing ethically sourced products. In the 1960s and 1970s, fair trade organizations began to emerge, with the goal of promoting fair trade practices and educating consumers about the impact of their purchasing decisions. These organizations worked to establish standards for fair trade, such as fair wages, safe working conditions, and sustainable farming practices.
Fair Trade's Impact on Global Trade
Fair trade has had a significant impact on global trade, particularly in developing countries. By providing fair wages and safe working conditions, fair trade organizations have helped to improve the lives of millions of farmers and producers around the world. These organizations have also helped to promote sustainable farming practices, which can help to protect the environment and ensure that resources are used in a responsible manner.
In addition to these benefits, fair trade has also helped to raise awareness about the importance of ethical and sustainable business practices. By providing consumers with information about the impact of their purchasing decisions, fair trade organizations have helped to create a demand for products that are produced in an ethical and sustainable manner. This, in turn, has encouraged more businesses to adopt fair trade practices and to prioritize sustainability in their operations.
The Principles of Fair Trade
The fair trade movement is built on a set of principles that guide the practices of fair trade organizations. These principles include fair wages, safe working conditions, sustainable farming practices, and respect for human rights. Fair trade organizations work to ensure that farmers and producers are paid fair prices for their products, and that they have access to the resources they need to grow their businesses. They also work to promote sustainable farming practices, such as organic farming and reforestation, which can help to protect the environment and ensure the long-term viability of farming communities. Read more about the 10 principles of Fair Trade on Aksa's blog post.
The Fair Trade Labeling System
The fairtrade labeling system is a way for consumers to identify food products that have been produced in an ethical and sustainable manner. Products that meet fair trade standards are labeled with a fair trade logo, which indicates that the product has been produced in accordance with fair trade principles. This logo is recognized around the world, and is an important tool for consumers who are looking to make ethical purchasing decisions.
Fair Trade and fairtrade are different in the sense that Fair Trade refers to the sustainable fair business model and fairtrade is a certificate governed by Fairtrade International. Under Fair Trade, products may be labelled or unlabelled. However, the business or artisan producer would have been certified or endorsed by a governing authority. In Australia, this lies with Fair Trade Association of Australia and New Zealand. Aksa Home Decor is an endorsed Fair Trader.
Source: GlobeScan report
Pic: Different Fair Trade Labels, Certification, or Endorsement
How Fair Trade Benefits Producers and Workers
Fair trade has had a significant impact on the lives of millions of farmers, artisans and producers around the world. By providing fair wages, safe working conditions, and access to resources, fair trade organizations have helped to improve the standard of living for people in developing countries. Fair trade has also helped to promote gender equality, by providing women with access to education and job opportunities.
Pic: Aksa Home Decor's artisan working on a sewing machine to make Chindi rug
In addition to these benefits, fair trade has also helped to promote sustainable farming practices, which can help to protect the environment and ensure the long-term viability of farming communities. By promoting sustainable practices, fair trade organizations are helping to ensure that future generations will have access to the resources they need to live healthy and productive lives.
Fair Trade Products and Where to Find Them
Fair trade products can be found in a variety of stores, including specialty stores, grocery stores, and online retailers. Some popular fair trade products include coffee, tea, chocolate, and clothing. When shopping for fair trade food items, it's important to look for the fair trade logo, which indicates that the product has been produced in accordance with fair trade principles.
In addition to these products, many fair trade organizations also sell handicrafts and artisanal products, which can be a great way to support small businesses and local artisans. These products can be found at fair trade markets and online retailers, and are often unique and one-of-a-kind. Read more on our blog post Ethical Shopping Down Under: A Guide to Finding Fair Trade Products in Australia to find some great options.
The Future of Fair Trade
The fair trade movement is continuing to grow and evolve, with more and more businesses and consumers recognizing the importance of ethical and sustainable business practices. As the movement continues to gain momentum, it is likely that we will see more businesses adopting fair trade practices, and more consumers making ethical purchasing decisions.
One area of particular growth is in the fashion industry, where consumers are increasingly interested in purchasing clothing that has been produced in an ethical and sustainable manner. Fair trade organizations are working to promote sustainable fashion practices, such as using organic cotton and recycled materials, and to educate consumers about the impact of their purchasing decisions.
“Around the world, consumers are increasingly acting on their values and displaying an openness to paying a little more for products that are ethically and sustainably produced, especially when it comes to tackling poverty and unjust labour conditions,” - Dr. Nyagoy Nyong’o, Fairtrade International’s Global CEO.
Fair Trade Controversies and Criticisms
Despite its many benefits, fair trade has also faced criticism from some quarters. Some critics argue that fair trade products are expensive, and that they are not accessible to consumers with lower incomes. Others have argued that fair trade organizations are too focused on promoting exports, and that they do not do enough to support local economies.
While these criticisms are valid, it's important to remember that fair trade is a complex issue, and that there are no easy solutions. Fair trade organizations are working to address these criticisms, and to find ways to make fair trade products more accessible to consumers of all income levels.
For example, there are fair trade shops in Australia who sell Aboriginal handicrafts along with products from other developing countries.
While products sold at Aksa Home Decor are handcrafted in India, we do support local causes like Greening Australia, and other local businesses as part of our operating model. We also try to collaborate with woman-led businesses, for example, for our professional photography needs.
Did you know this about Fair Trade?
- It was referred to as alternative trade in its early days
Conclusion: The Importance of Supporting Fair Trade
Fair trade is an important movement that is changing the way we shop and do business. By promoting ethical and sustainable practices, fair trade organizations are helping to improve the lives of millions of people around the world, and to protect the environment for future generations. As consumers, we have the power to make a difference by supporting fair trade products and businesses. By making ethical purchasing decisions, we can help to create a more just and sustainable world for all.