Fair trade

Fair trade is an approach to commerce that seeks better trading terms and social, economic, and environmental standards for producers and workers, especially in lower-income countries.

Fairtrade certification: A system that verifies products and supply chains against specified fair-trade standards. Independent certification turns fair-trade criteria into claims that buyers can check.
Alternative trading organization: An organization that trades goods under social or ethical principles beyond conventional commercial criteria. These organizations provided early channels for direct, solidarity-based trade with producers.
Edna Ruth Byler: An American Mennonite activist who began selling handicrafts made by Puerto Rican women in 1946. Her work is an early example of direct sales intended to support marginalized producers.
Free trade: A trade policy that reduces government barriers such as tariffs and quotas between economies. Fair trade focuses on terms and standards for participants, not simply removing trade barriers.
Fair trade coffee: Coffee produced and traded under fair-trade standards or certification schemes. Coffee became the first major product sold under the Max Havelaar certification model.
Fairtrade Minimum Price: A minimum purchase price intended to protect certified producers when market prices fall. It is one way fair-trade contracts seek to limit producers’ exposure to price crashes.
S.O.S. Wereldhandel: A Dutch fair-trade organization founded in 1959 to import goods from disadvantaged producers. Its early importing work helped establish organized fair trade in Europe.
Frans van der Hoff: A Dutch priest and development advocate who helped establish the Max Havelaar coffee initiative. He worked with Mexican coffee producers to connect producer organization with consumer labeling.
Direct trade: A sourcing approach in which buyers purchase from producers or suppliers with fewer intermediaries. Direct relationships can resemble fair trade but do not necessarily require enforceable social standards.
Fair trade chocolate: Chocolate made with cocoa sourced under fair-trade standards or certification schemes. Cocoa supply chains bring fair-trade debates about farmer income and labor conditions into sharp focus.

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