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Fair Trade

   Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South.

   Fair Trade Organizations have a clear commitment to Fair Trade as the principal core of their mission. They, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade. They can be recognised by the WFTO logo.

   Fair Trade is more than just trading: it proves that greater justice in world trade is possible. It highlights the need for change in the rules and practice of conventional trade and shows how a successful business can also put people first.

   Fair Trade has become a concept that is Europe wide recognised and acknowledged by consumers. For example in the Netherlands, the name recognition of "Worldshop" is 85%. Many retail chains would love to have this extended acknowledgment by their real and potential consumers. The fast growth of Fair Trade in the UK and Italy show an appreciation of consumers for Fair Trade products.

   Politicians are also charmed by the concept of Fair Trade. Legislation initiatives from the French, Belgium and Italian government may not be the outcome of the Fair Trade movement desires; it is a sign of interest in the principles behind Fair Trade. The huge number of local, regional and national governments drinking Fair Trade coffee and tea is another sign of this appreciation.

   The majority of revenue generated by Fair Trade sales in Europe is attributed to food sales, which encompasses Fair Trade shops, supermarkets and other outlets. Less than 10% of the figure is attributed to handicrafts, whose main outlets are the nearly 3000 Fair Trade shops that exist in Europe. The sale of Fair Trade labelled food is growing fast. However, the sale of Fair Trade handicrafts is growing very slowly. Most of the WFTO members are handicraft producers. Thus this is what Fair Trade aims to achieve: supporting as many producers as possible to make a decent living. New markets in the USA and in the South give a small answer to this growing demand from producers. Europe, traditionally the biggest Fair Trade market, has huge potentials.

   A study by EFTA showed a gift market in Europe of around 6 billion Euros and currently Fair Trade is only taking a drop of this. A challenge for WFTO Europe is to dig into this huge potential and grab a larger market share. It is essential to keep in mind that WFTO Global is mainly composed of handicraft Fair Trade Organizations from the South. This success also leads to more competition from ethical initiatives and/or organizations claiming to be Fair Trade. Politicians like the concept of Fair Trade and they give their support not only by mouth, but also in subsidies to develop social initiatives. The challenge for the Fair Trade movement is to maintain the standards high and development-driven, accompanied by practices that deliver measurable added value to Fair Trade Organizations in the South.