Fair Trade or Fairtrade?

Confused by the differences in fairtrade and fair trade?

Fair trade is a term often used to indicate ethical trading. This means that companies are involved in trying to ensure that the basic labour rights of the employees of their third world suppliers are respected. Ethical trading is based around ensuring that no exploitation takes place. This includes:-

Ensuring no use of forced labour;

• Allowing the freedom of association and the right to collective bargaining;
• Providing safe and hygienic working conditions;
• Ensuring no child labour is used;
• Ensuring living wages are paid;
• Ensuring that workers don’t have to work excessive hours;
• Ensuring there is no discrimination;
• Ensuring that regular employment to be provided;
• Ensuring that no harsh or inhumane treatment of workers takes place.

Some companies do try to use the words fair trade when describing their business and business ethics. It is always therefore wise to look at any ethical membership they claim to hold and to check out their ethical (or other) policies. Of course, these aren’t always going to prove whether the company is trading ethically or not but they should give you some indication. For more information about ethical trading visit the Ethical Trading Initiative website.

Fairtrade is the term that is used to describe products that hold the FAIRTRADE mark which is awarded by the Fairtrade Foundation. This mark is a guarantee that the producers have been given a better deal for their work. It addresses the injustice of low prices by guaranteeing that producers receive fair terms of trade and fair prices – however unfair the conventional market is.