Fair Trade Coffee

Fair Trade is an organized social movement and market-based approach that aims to help producers in developing countries and promote sustainability. The movement advocates the payment of a higher price to producers as well as social and environmental standards. It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate and flowers.

Fair Trade's strategic intent is to work with marginalized producers and workers in order to help them move towards economic self-sufficiency and stability. It also aims to allow them to become greater stakeholders in their own organizations, as well as play a wider role in international trade. Fair Trade proponents include a number of international development aid, social, religious and environmental organizations such as Christian Aid, SERRV International, Oxfam, Amnesty International, Catholic Relief Services, and Caritas International.

In 2008, Fair Trade certified sales amounted to approximately US$4.08 billion (?2.9 billion) worldwide, a 22% year-to-year increase.Fair Trade Labelling Organizations International (2009). tt_news=105&tx_ttnewsbackPid=361&cHash=1082e96b5e Global Fair Trade sales increase by 22%. URL accessed on June 10, 2009. While this represents a tiny fraction of world trade in physical merchandise,[http://www.wto.org/english/res_e/statis_e/its2006_e/its06_general_overview_e.pdf] p. 3, The World Trade Organization publishes annual figures on the world trade of goods and services. fair trade products generally account for 1-20% of all sales in their product categories in Europe and North America. In June 2008, Fairtrade Labelling Organizations International estimated that over 7.5 million producers and their families were benefiting from fair trade funded infrastructure, technical assistance and community development projects.Fairtrade Labelling Organizations International (2008). FLO International: Annual Report 2007. URL accessed on June 16, 2008.

The response to fair trade has been mixed. Fair trade's increasing popularity has drawn criticism from both ends of the political spectrum. The Adam Smith Institute sees "fair trade" as a type of subsidy or marketing ploy that impedes growth. Segments of the left, such as French author Christian Jacquiau, criticize fair trade for not adequately challenging the current trading system.