Fair Trade Glossary
10 principles of Fair Trade
Developed by the World Fair Trade Organization, the 10 principles of Fair Trade must be followed by Fair Trade Organizations in their day-to-day work.
Alternative Trading Organization (ATO)
An alternative trade organization is usually a non-government organization or mission-driven business aligned with the Fair trade movement, aiming “to contribute to the alleviation of poverty in developing regions of the world by establishing a system of trade that allows marginalized producers in developing regions to gain access to developed markets.” Examples include Oxfam and Ten Thousand Villages.
Eco fashion, also called sustainable fashion, is a growing design philosophy with a goal to create a system which can be supported indefinitely in terms of environmentalism and social responsibility.
Ethical consumption, also known as ethical shopping, is a type of consumer activism that is based on the concept of voting for the products on which consumers spend their dollars. It involves “positive buying” in that ethical products are favoured, or “moral boycott”. The term was popularised by the UK magazine the Ethical Consumer in 1989.
Fairtrade is an accreditation, labelling system developed and monitored by Fairtrade International. It allows consumers to identify goods meet agreed standards. Most common Fairtrade products include coffee, tea and cotton. Fairtrade labelling does not apply to handicraft or handicraft producers.
Fairtrade Australia is the Australia and New Zealand member of Fairtrade International.
The Fairtrade Foundation is a charity based in the United Kingdom that licenses the Fairtrade Mark. It is the British member of the Fairtrade International.
Fairtrade International (FLO)
Fairtrade International is one of the two organisations which resulted from the January 2004 split of Fairtrade Labelling Organizations International. Fairtrade International is responsible for the development of fair trade standards and support of producers in gaining and maintaining their fair trade certification and capitalizing on market opportunities.
Fair Trade is a social movement whose stated goal is to help producers in developing countries achieve better trading conditions and to promote sustainability. Members of the movement advocate the payment of higher prices to exporters, as well as higher social and environmental standards. Although no universally accepted definition of 'fair trade' exists, Fairtrade labeling organizations most commonly refer to a definition developed by FINE.
Fair Trade Association of Australia and New Zealand
The Fair Trade Association of Australia and New Zealand (FTAANZ) is a member-based organization that supports two systems of fair trade. The first is the Australia and New Zealand member of FLO International. The second is the World Fair Trade Organization (WFTO), of over 450 world-wide members, to which FTAANZ is one. FTAANZ also endorses fair trade businesses who are primarily artisan craft-based and do not fall within the purview of the Fairtrade Labeling Organization structures. Businesses become endorsed as a "Fair Trader of Australia".
Fair Trade Certification
A fair trade certification is a product certification that recognised fair trade practices. The most commonly used fair trade certification is the International Fairtrade Certification Mark.
Fair Trade Certified Mark
Fair Trade Certified Mark is the North American equivalent of the International Fairtrade Certification Mark.
Fair Trade Federation
The Fair Trade Federation (FTF) is a Washington DC-based nonprofit trade association that provides support to and promotes North American businesses that they identify as being fully committed to the principles of fair trade.
Fair Traders of Australia
Fair Traders of Australia are a group of Australia-based businesses that are endorsed by the Fair Trade Association of Australia and New Zealand.
Fair Trade Minimum Price
The Fairtrade Minimum Price is a guaranteed price to be paid for a few products like coffee when the world prices collapse. It would usually be spent on “social projects” rather than going to the farmers.
Fair Trade Premium
The Fairtrade Premium is an extra payment over the market price which is paid to the exporting organization of a few products like coffee. The residual after extra costs have been met must be spent on “social projects” for social and economic development in the producing communities, rather than being given to farmers as extra payments.
Fair Trade USA
Fair Trade USA is formerly a licensing agency for the Fairtrade International label. It broke from the system and is implementing its own fair trade labelling scheme, which has resulted in controversy due to its inclusion of independent smallholders and estates for all crops.
Fair Trade University
The Fair Trade Association has recognised a number of universities throughout Australia and New Zealand as Fair Trade Universities. Being recognised as a Fair Trade University means making a commitment to supporting Fair Trade through using Fair Trade products and raising awareness.
FINE was created in 1998 and is an informal association of the four main fair trade networks: Fairtrade Labelling Organizations International, International Fair Trade Association (now the World Fair Trade Organization), Network of European Worldshops and European Fair Trade Association. The aim of FINE is to enable these networks and their members to cooperate on the development of the standards and guidelines for fair trade, and on advocacy and campaigning work.
FLO-CERT is the inspection and certification body for labelled Fairtrade. It is one of the two organizations which resulted from the January 2004 split of Fairtrade Labelling Organizations International.
Free produce movement
The free produce movement was a boycott against goods produced by slave labour in the 1790s to the end of slavery in the United State in the 1860s.
The FTO Mark allows consumers to identify fair trade organisations worldwide (as opposed to products in the case of Fairtrade International and Fairtrade) and guarantees that standards are being implemented regarding working conditions, wages, child labour and the environment.
International Fairtrade Certification Mark
The International Fairtrade Certification Mark is an independent certification mark used in over 50 countries. It appears on products as an independent guarantee that a product has been produced according to Fairtrade standards. It does not currently apply to handcrafts or producers.
Non-government organization (NGO)
A non-governmental organization (NGO) is an organization that is neither a part of a government nor a conventional for-profit business. Usually set up by ordinary citizens, NGOs may be funded by governments, foundations or businesses. Some avoid formal funding altogether and are run primarily by volunteers.
Worldshops, world shops or Fair Trade shops are specialised retail outlets offering and promoting Fair Trade products. They are often not-for-profit organisations and run by locally based volunteer networks. A vast major of worldshops are still based in Europe, where the first worldshop was founded by Oxfam in 1959. Worldshop’s aim is to make trade as direct and fair with the trading partners as possible. This often means producers in developing countries and consumers in developed countries. They often cut out any intermediaries in the import chain. Oz Fair Trade can be classified as a worldshop.
World Fair Trade Organization
The World Fair Trade Organization, formerly the International Federation of Alternative Traders ("IFAT"), was created in 1989 and is a global association of 324 organizations in over 70 countries. WFTO's mission is to improve the livelihoods and wellbeing of disadvantaged producers by linking and promoting Fair Trade Organizations, and speaking out for greater justice in world trade. The Fair Trade Organization Mark (WFTO Logo) shows that an organisation follows the WFTO’s 10 Principles of Fair Trade.