Fair trade policy

Fair trade is an organized social movement and market-based approach that aims to help producers in developing countries and promote sustainability. The movement advocates the payment of a "fair price" as well as social and environmental standards in areas related to the production of a wide variety of goods. It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate and flowers.


Fair trade's strategic intent is to work with marginalized producers and workers in order to help them move towards economic self-sufficiency and stability. It also aims to allow them to become greater stakeholders in their own organizations as well as play a wider role, and achieve greater equity, in international trade. Fair trade proponents include a number of international development aid, social, religious and environmental organizations such as SERRV International, Oxfam, Amnesty International, Catholic Relief Services, and Caritas International.


Fair trade advocates typically espouse a number of guidelines. The movement intends to provide market access to otherwise marginalized producers, connecting them to customers and allowing access with fewer middlemen. It aims to provide higher wages than typically paid to producers in typical trading relationships, with the hope of allowing them to achieve greater financial stability, improve their general well-being and allow future investments. The movement stresses information sharing and planning logistically, as well as helping producers develop knowledge, skills and resources to improve their lives.


Fair trade advocates also seek to raise awareness of the movements philosophies among first world consumers. Fair trade products are traded and marketed either by an "integrated supply chain" whereby products are imported and/or distributed by fair trade organizations (commonly referred to as alternative trading organizations) or by "product certification" whereby products complying with fair trade specifications are certified indicating that they have been produced, traded, processed and packaged in accordance with the standards.