FAQs > 5. What is the difference between Fairtrade and fairly-traded?
Fairtrade
Fairtrade is an ethical standards label which provides a guarantee, via audits carried out by an independent certification body, that developing world producers have been paid a fair price, and had decent working conditions, for products carrying the Fairtrade mark.
In the UK the Fairtrade Foundation (www.fairtrade.org.uk) licenses companies to use the Fairtrade mark on products that meet the Fairtrade standards. In the little purple dot directory businesses selling products bearing the Fairtrade mark should be categorised under ethical standards labels as Fairtrade.
Fairly-traded
Fairly-traded refers to products that don’t have Fairtrade certification but which state they have been traded in an ethical manner. Businesses registered with, and listed on, the ethical networks World Fair Trade Organization – WFTO (www.wfto.com) or The British Association For Fair Trade Shops – BAFTS (www.bafts.org.uk) are dedicated to trading fairly and creating trading partnerships, based on dialogue, transparency and respect, which seek greater equity in international trade. Both networks verify that businesses registered with them follow ethical business practices in their trading partnerships with producers.
Many of these businesses have been trading fairly for many years before Fairtrade certification was established. The process of agreeing international Fairtrade standards can take time, and for many of the products these organisations sell, there may not yet be standards available to certify their products.
Businesses selling fairly-traded products who are members of the WFTO or BAFTS should be tagged under additional ethics information as fairly-traded and either WFTO member or BAFTS member in the directory.
Other ‘fair trade’ claims
There are also other companies making their own ‘fair trade’ or ‘fairly-traded’ claims without having the independent scrutiny of the Fairtrade certification mark, or being part of a recognised network such as WFTO and BAFTS. You should ask what these claims are based upon and satisfy yourself that the company is working to fair trade principles in its dealings with suppliers.
For instance the company should be able to demonstrate that it has a transparent supply chain, meaning that it can trace the journey of the product back to its original source, and be able to ensure that producers have been paid a fair price for their work.