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An investigation into the limits of Fair Trade as a development tool and the risk of clean-washing, HEI Working Papers, vol. 6, Geneva: Economics Section, Graduate Institute of International Studies, October. Mohan, S. (2010), Fair Trade Without the Froth – a dispassionate economic analysis of 'Fair Trade', London: Institute of Economic Affairs.
Fair trade, by this definition, is a trading partnership based on dialogue, transparency and respect, that seeks greater equity in international trade. Fair trade organizations, backed by consumers, support producers, raise awareness and campaign for changes in the rules and practice of conventional international trade. [3]
Fairtrade International was established in 1997. It set private standards relating to labour, cooperative organisation, and the governance of the Fairtrade benefits. The organisation was divided in January 2004 into two independent organisations: [5]
Fair trade principles have deep roots in European societies long before the first structured alternative trading organizations (ATOs) emerged following World War II. Many of the fundamental concepts behind fair trade actually show a great resemblance with pre-capitalist ideas about the organization of the economy and society.
The Fair Trade Federation does not certify individual products, but instead evaluates an entire business. The FTO Mark, launched in 2004 by World Fair Trade Organization, and identifies registered fair trade organizations. UTZ Certified is a coffee certification program that has sometimes been dubbed "Fairtrade lite". [17]
Fair trade sales in the U.S. averaged an annual growth of 50% throughout the decade. [3] Following the proliferation of Fairtrade Towns in the UK, Media, Pennsylvania became the first fair trade town in the U.S. in 2006. [3] Today there are 45 U.S. Fair Trade Towns in total. Below is a list of these towns as of November 2019. [2]
The Fair Trade Association of Australia and New Zealand (The Fair Trade Association) is a member-based organization that supports two systems of fair trade. The first is the Australia and New Zealand member of FLO International, which unites Fairtrade producer and labeling initiatives across Europe, Asia, Latin America, North America, Africa, Australia and New Zealand.
Fairtrade Town is a status awarded by a recognized Fairtrade certification body (i.e. The Fairtrade Foundation in the UK, TransFair Canada in Canada etc.) describing an area which is committed to the promotion of Fairtrade certified goods.