When Did The Practice Of Fair-Trade Begin

When did the practice of fair-trade begin 

While you may have heard of “fair trade goods” and “ethical marketing”, you may not understand the impact of the system from start to finish. Fair trade is significant not only because it provides a regulated market for producers, but because it also ensures a livable wage, safe work environment, and opportunity for poor and developing communities.

As a consumer, you don’t necessarily need to understand every exact step fair trade has taken to become what it is today. But when considering the difference between corporate goods and fair trade products, having a bit of background could help you better understand why your choice matters. In fact, some shoppers may not even realize how wide of a range fair trade has! While bananas, coffee, and tea are most commonly the first products that may pop into your head when you hear ‘free trade goods’, you may be surprised to know there are thousands of products free trade covers. If you didn’t know that free trade started with Puerto Rican needlework in the 1940s, what else could you be overlooking?

A Brief History On Fair Trade

Fair trade developed in the late 1940s as organizations began working with developing countries and poor communities to buy their goods. One of the first established fair trade goods was needlework from South American women in low-income communities. In the 1950s, groups like Oxfam, Ten Thousand Villages, and more created formal fair trade shops to sell crafts and other items made by these communities.

The purpose and focus of building up the Fair Trade movement were to raise awareness of global communities that needed support. By purchasing their goods, buyers gave these workers, refugees, and craftsmen better opportunities. "Third World Shops" and Fair Trade shops opened up worldwide in the 1960s and 1970s, establishing a market for these handmade goods.

In the early 1970s, the first fairly traded coffee from Guatemala was imported through the Netherlands’ Fair Trade Original. Since then, coffee has grown as a Fair Trade export, benefiting thousands of coffee farmers. According to the World Fair Trade Organization, anywhere from 25 to 50% of the turnover of Northern Fair Trade Organizations comes from coffee.

The Fair Trade System

There are many different organizations that use fair trade and ethical marketing in their processes. Through Fair Trade regulations, companies are required to pay prices that never fall lower than the market value. The goal behind the system, according to the Fairtrade Federation, is for “better prices, decent working conditions, local sustainability, and fair terms of trade for farmers and workers in the developing world.”

Fair trade is designed to focus on lasting partnerships and livable wages as opposed to profit and increased output. Safe working conditions, anti-discrimination practices, and benefits for families are a few key principles that are also necessary to keep the producers protected.

Handmade or Locally Grown Goods

Handmade goods have been the primary merchandise sold since the beginning of the Fair Trade movement. While cane sugar, coffee, and other exports are equally important to familial income, these handmade crafts often give the women in a community employment opportunities where they’re usually limited. In other regions of the world, it gives small artists and independent suppliers an opportunity to sell their work through a fair and organized system.

According to the Fairtrade Federation, over 4,500 products are Fairtrade certified in the UK. While coffee, tea, and bananas are often the most commonly referenced fair trade goods on the market, you may be surprised to note just how many products can be approved and certified. This includes ice cream, wine, flowers, soccer balls, lipstick, and more! They also report that about one in every three bananas bought in the UK is Fairtrade.

Fair Trade Today

Fair Trade has become a global movement that has impacted not only the world's financial and industrial industries but also political debates and decisions. According to the World Fair Trade Organization, “over a million small-scale producers and workers are organized in as many as 3,000 grassroots organizations … in over 70 countries in the South.” With success in supermarkets, Fair Trade shops, and online retailers, these suppliers have helped bring awareness to the responsibilities of businesses and establishments on social and environmental levels. Fair trade additionally contributes to education, housing development, equality within developing countries.

With this brief understanding of the history and significance of fair trade, will your decisions be influenced? As you're shopping at your local supermarkets or grocery stores, take an extra moment to look for products that come from fair trade organizations. Even when shopping online, adding in the search term "fair trade" the next time you look for home decor, art, or even beauty supplies will lead you to new opportunities. With a simple shift in your routines as a consumer, you could have a huge impact on the lives within developing countries.