What is fairtrade?

In 2007, Fair trade certified sales amounted to approximately €2.3 billion (US $3.62 billion) worldwide, a 47% year-to-year increase. While this represents a fraction of world trade in physical merchandise,

Fair trade is a word that we hear very often, but do you know what is the meaning of word "fair-trade"?

A joint venture of trading that is established through a proper channel of discussion and communication, honesty and respect is known as fair-trade. Fair trade works to provide a supportable and sustainable developing environment for both workers and producers. It secures rights of the marginalized producers and workers as well as offer better trading circumstances to them.

Fair trade organizations:

Fair trade organizations are sponsored and supported by consumers. These organizations are actively participating to change the practice of conventional international trade and to obtain their goal they are actively supporting producers and are raising awareness for the changes in the rules and practices of conventional international law. There are many campaigns backed by these organizations that support changes in conventional international law.

Fair trade products:

Fair trade products are produced and being traded on the basis of the rules and regulations that the organizations set. The rules are verified by various trustworthy, self-governing assurance systems. According to a survey conducted in 2007, fair-trade certified sales was up to approximately 3.26$ billion worldwide. This amount is increasing with an exceptional 47% per annum. Apart from this physical merchandise, fair-trade products comprise of 1% - 20% of all sales of product in Europe and North America.


Another estimation of June 2008 indicates that over 7.5 million marginalized producers and their families are benefiting from fair-trade backed infrastructure, technical assistance and community development projects.

Trade Channels of fair-trade products:

There are two complementary channels that are involved in trade and marketing of the fair-trade products. Although all of the fair-trade producers and workers are committed to fair-trade principles, both of the following channels largely participate in overall trading of the products.

1- Integrated supply chain:

It is known as the integrated supply chain route. The products are imported and are distributed by organizations whose chore target is fair-trade and its principles. It is based on the notion to reduce poverty and to increase exposure of marginalized producers and workers of fair-trade. It is also referred as alternative trading organizations. The marketing campaigns of this channel are based on awareness raising campaigns.

2- Product certification:

In this channel, products are certified. This certificate is an indication that the product is traded, produced, processed and packaged keeping in mind requirements and standards of international trade.

Fair trade as an organized social movement:

The chore cause behind all of the motives of fair trade is to reduce poverty and promotion of sustainable market globally. This campaign is carried out through a very organized social movement that runs keeping in mind two very basic rules:

1- Fair price for all of the goods and services.

2- Social and environmental values in the areas associated to the production of a wide variety of goods.

There is no discrimination between developed and developing countries when it comes of social movement of the fair-trade. The products that comes under inspection include cocoa, handicrafts, coffee, tea, sugar, bananas, cotton, honey, wine, fresh fruits and flowers.

Fair trade strategy:

Target of the fair-trade strategy is to purposefully work along marginalized producers and workers. This strategy is specially designed to help the producers, workers to move to a secure, sustain, and expanding market. The strategy makes sure that there is no discrimination in the international trade thereby giving these marginalized producers a chance to become stallholders in their own organizations. Thus, fair trade provides the workers and producers to take a more effective and active market in the international trade and international market.

Fair-trade as a controversial practice:

There are many proponents of fair-trade including various religious, development aid, social and environmental organizations (Oxfam, Amnesty international, and Caritas international). However, it has also stirred controversy and criticism. The criticism comes from both ends of the political gamut. Fair trade is criticized on the basis that it lacks adequate challenges for current trading system.

Siiren cordially thank you on giving your precious time to read this piece of information on fair-trade. We hope that if not all, majority of your basic questions regarding fair-trade, producers, workers and fair-trade products, are solved.

There are a number of online fair-trade centers; the actual count of local and online fair-trade gifts is just uncountable. Like all other reputable fair-trade companies, Siiren makes sure that you are making difference to someone's life with your every purchase.

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