What is 'fair trade'?

Fair trade is sometimes called ethical trade. It is the idea that people in developing countries should get a fair price for the products they sell, instead of being exploited as cheap labour or through the destruction of their environment.

How does fair trade help farmers in developing countries?

Farmers growing products such as tea, coffee and chocolate must pay for fertilisers, pesticides etc. which are generally imported from developed countries. However the price they get for their crops has not increased as much as the price they pay for these imports. The market price for their products sometimes drops below the cost of producing them. As a result many farmers are working harder but getting less money than before.

Fair trade tries to help by buying products directly from the farmer at a better price than the farmer would otherwise get. This has helped many small farmers trade their way out of poverty and improve their standards of living.

How long has fair trade been operating?

Fair trade has grown more widespread during the 1990's. In July 1992 the Fairtrade Foundation was set up by a number of organisations - CAFOD (Catholic Fund for Overseas Development), Christian Aid, New Consumer, Oxfam, Traidcraft Exchange and the World Development Movement. The Fairtrade Foundation awards its Fairtrade Mark to products which offer producers and workers a fair deal. The UK Government launched its own Ethical Trading Initiative (ETI) in March 1998.