Fair Trade

Definition

Fair Trade — Producers in developing countries are paid a fair minimum price plus a community premium.

Fair Trade certification guarantees that producers — typically smallholder farmers and cooperatives in developing countries — receive a minimum price that covers sustainable production costs, plus a Fair Trade Premium that the community democratically invests in projects like schools, clinics, or infrastructure.

The standard also prohibits forced and child labor, requires safe working conditions, and restricts the most hazardous agrochemicals.

Several certifiers operate under the Fair Trade umbrella with different scopes: Fairtrade International (the FAIRTRADE Mark), Fair Trade USA, and Fair for Life. Common categories include coffee, cocoa, tea, sugar, cotton, and bananas.

See Fair Trade products

Browse top-ranked Fair Trade-certified products across categories.

Beauty & Personal CareFood & NutritionHome & CleaningKitchen & DiningFurniture & DecorFashion & Apparel

Related terms

Vegan
Contains no animal-derived ingredients and no animal byproducts.
Cruelty-Free
Neither the finished product nor its ingredients were tested on animals.
B Corp
A for-profit company independently verified to meet high social and environmental standards.
USDA Organic
U.S. federal certification for food and farming free from synthetic pesticides, GMOs, and irradiation.

Using Fair Trade without overreading the claim

Producers in developing countries are paid a fair minimum price plus a community premium.

This entry refers to a named scheme or initiative. Its published criteria and scope matter more than the general impression created by the badge.

Separate the question the term addresses from questions it does not answer. Material sourcing, labour conditions, chemical safety and disposal need different evidence. Catalogue labels are a starting point for checking that evidence, not a substitute for it.

Fair Trade: verification guide

CheckActionLimitation
SchemeRead the named scheme's current criteriaStandards cover different environmental or social questions
RegisterLook up the licence or member in the scheme's directoryA logo image alone does not establish current status
ScopeMatch the company, site or exact product coveredCompany certification is not necessarily product certification

Before relying on Fair Trade

  • SchemeRead the named scheme's current criteria
  • RegisterLook up the licence or member in the scheme's directory
  • ScopeMatch the company, site or exact product covered

Frequently asked

What does Fair Trade mean?+

Producers in developing countries are paid a fair minimum price plus a community premium.

How can I check a Fair Trade claim?+

Read the named scheme's current criteria. Look up the licence or member in the scheme's directory. Match the company, site or exact product covered.