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Jacob Thorsfeldt

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At a glance, buying a product marked "fair trade" seems like one of the easiest ways to turn the prosaic act of shopping into consumer activism. Fair trade products have proliferated in stores, especially in the past decade, as has the number of producer organizations worldwide that have been certified as meeting fair trade standards. Despite that growth, or perhaps because of it, most consumers would be hard-pressed to explain the differences among the product labels or what fair trade means on the ground. In this FAQ, we look at the basics of fair trade and more.
What is fair trade?
Fair trade is when fair prices are paid to growers, artisans, and other producers in developing countries for their products. It's an alternative to conventional deals, offering better terms on several fronts. The idea is to reduce poverty, provide good working conditions, and encourage eco-friendly practices around the world. Fair trade says no to child labor and yes to improving the producers' communities with funds, or premiums, for social, business, and environmental development. On the consumer end, the fair trade movement needs shoppers' buy-in: Their purchases are a crucial link in the cycle and encourage more companies to get involved.
What products are certified as fair trade?
Mainly they are commodities-raw, primary agricultural products-and among the most common are coffee, tea, cocoa, bananas, and sugar. Also on the list are other fruits, vegetables, herbs, grains, beans, nuts, oils, butter, honey, spices, and wine. You'll also find labels on such items as fresh flowers, textiles and apparel (made with fair trade materials or fair trade labor), packaged foods and beverages containing fair trade ingredients, and sports balls and handicrafts.
How do I know that every product labeled "fair trade" was made ethically?
The labels indicate that the products have undergone certification with regular audits or some level of screening to ensure they meet established standards.
Why are there so many kinds of labels?
Fair trade certification is not centralized under one agency. Numerous independent organizations offer the service, each with its own logo and label (or set of labels for various criteria). On the one hand, shoppers may find it confusing to see so many logos in the shopping aisles. On the other hand, the labels can indicate what aspect of the product is certified: say, all the coffee beans in a package, just the sugar in those cupcakes, a percentage of leaves in those tea bags, or the labor of sewing a shirt. You'll often see the term in other forms-such as "Fair Trade" or "Fairtrade"-as they refer to particular organizations' trademarked certifications. This FAQ uses "fair trade" generically as a term to encompass the movement as a whole.
What's the difference among the labels?
In the United States, the most widely recognized labels come from these five organizations: Fairtrade International, Fair Trade USA, Fair for Life, World Fair Trade Organization, and Fair Trade Federation. The first three are independent certifying agencies; each uses a third-party inspection agency to ensure specific criteria are met. The latter two are membership groups that require members to adhere to the group's fair trade rules.
RELATED: The Human Side of Farming Are some organizations' labels more "fair" than others?
This has been the subject of ongoing debate, and there is no straight answer given multiple sets of criteria. The standards overlap, but all cover the main principles of fair trade. Generally, the key differences include the types of products that are certified, the stage of production when certification happens, and whether just a product or an entire company is certified fair trade.
What do the labels mean?
It's simple enough for single-item products such as coffee, nuts, or a bunch of roses: 100 percent of the packaged contents must be certified to bear a label from any of the three certifying organizations mentioned above.

The matter is more complex for a multi-ingredient product-say, chocolate ice cream, cookies, or an energy bar. In a nutshell, the ingredients don't have to be 100 percent fair trade, with a couple of caveats. First, any ingredient in the product that can be sourced as fair trade must indeed be fair trade. Second, the product must have a minimum percentage of fair trade ingredients. That minimum varies among organizations: Fair Trade USA and Fairtrade International call for at least 20 percent (though they say many products easily go above that), while Fair for Life requires 50 percent or more.
RELATED: Bridging the Organic-Conventional Divide Are fair trade products more expensive?
Not always. Products with a fair trade label can cost less, the same, or more than their conventional counterparts because fair trade isn't the only factor behind retail prices. According to Fairtrade International, a certified product might be cheaper or cost the same because the raw material that's shipped, packaged, and marketed by others in the supply chain ends up representing just a small fraction of the final retail cost.

The bottom line for shoppers is a matter of common sense: Compare like for like when deciding which to buy. Fair trade items typically are priced competitively with other high-quality products. "Regardless, when you choose fair trade, more of that money is getting back to the people who produced it," says Nora Pittenger, director of business development at Fair Trade USA.
Is there enough interest in fair trade to make a difference?
Yes, and it's growing. Fair trade now involves thousands of products, from niche brands such as Numi Organic Tea and chocolate maker Valrhona to more mainstream items from larger manufacturers such as General Mills, Kellogg, PepsiCo, Patagonia, Starbucks, and West Elm.
How much more do producers get under a fair trade deal versus a conventional one?
There isn't one neat answer, considering the range of products and the variance in living wage from one region to the next. However, consider that by definition the fair trade model provides a markup over the market price or the cost of production; there always will be a built-in premium that producers can use for projects of their choice. "We've seen farmers vote to invest in seedlings, scholarships for kids, bring in mobile cancer screenings for women, and build wells for clean water," says Pittenger. "What really matters is that the power is in their hands."
Is there a cost to producers?
Generally speaking, producer cooperatives pay fees related to fair trade certification, as well as for audits to ensure compliance. In the Philippines, for example, whose fair trade exports include sugar, coconut oil, and bananas, producers pay about $9,400 annually for certification audits, according to Edwin Lopez, executive director of Alter Trade Foundation, a nongovernmental organization that assists farmers. "You must have a good market in order to recover the cost," he said. "On the other hand, the producers could benefit from maintaining the fair trade standard, and so it is part of their operating cost."
Does fair trade mean organic?
Not necessarily. Fair trade certification is separate from organic certification, though many products end up having both. That's because fair trade organizations encourage sustainable farming practices that may include organic options. As well, many producers decide to invest their premium funds in organic certification. Fair Trade USA says nearly half of all its certified imports are also organic.
Is it better to buy local or fair trade?
Both have their pros. Buying local, especially from farmers markets, supports your local economy and agriculture. Buying fair trade, meanwhile, is also a way of supporting global social justice and sustainability in the food chain. It isn't so much a question of "or" but a matter of "and"-do both. You'll find that many items on your shopping list can't be grown at scale within 100 or even 1,000 miles of your home, so fair trade is a good option for those things.
So all I need to do is shop?
Not quite. Money talks, but ask questions and speak out as well. Email and social media, in particular, have given shoppers a powerful means to influence the decisions of companies and organizations. Today's conscientious consumer can have a stronger voice than ever. Note that it can be hard to evaluate a label when a company uses its own certification or simply says it buys fairly, so be prepared to research your favorite products.
Where can I find more details about what all the labels mean?
Look for the particulars on the websites of these organizations:

Fair for Life, www.fairforlife.org

Fair Trade USA, www.fairtradeusa.org

Fairtrade America, www.fairtradeamerica.org

Fairtrade International, www.fairtrade.net

World Fair Trade Organization, www.wfto.com

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Who Benefits When You Buy 'Fair Trade' Products? (Promoted)

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At a glance, buying a product marked "fair trade" seems like one of the easiest ways to turn the prosaic act of shopping into consumer activism. Fair trade products have proliferated in stores, especially in the past decade, as has the number of producer organizations worldwide that have been certified as meeting fair trade standards.

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Jenna Palmer

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U.S. Vice President Mike Pence, left, and Japanese Deputy Prime Minister and Finance Minister Taro Aso pose for a photo at the end of their joint press conference at the prime minister's office in Tokyo, on April 18, 2017. (AP Photo/Eugene Hoshiko)

TOKYO (Kyodo) -- Japan agreed with the United States on Tuesday to discuss a bilateral framework for trade and investment rules, as U.S. Vice President Mike Pence raised the prospect of a free trade agreement.

After the first round of a dialogue aimed at strengthening economic cooperation, the two countries said in a joint statement they will seek to achieve concrete results "in the near term," even as the hurdles could be high to resolve thorny issues in future talks.

President Donald Trump has pulled the United States out of the Trans-Pacific Partnership, a multilateral free trade agreement that his predecessor Barack Obama viewed as an integral part of his pivot to Asia policy.

The U.S. withdrawal from the TPP had raised concern among some Japanese officials, who are wary of a bilateral free trade agreement with the United States due to concern that Washington could push Tokyo to boost imports of U.S. cars and agricultural produce.

"The TPP is a thing of the past for the United States of America," said Pence, who chaired the meeting with Deputy Prime Minister Taro Aso.

"There may be a decision made between our nations to take what we have learned in this dialogue and commence formal negotiations for a free trade agreement, but I'll leave that to the future," Pence told a joint press conference.

A Japanese official acknowledged after the meeting that there is a difference in how Japan and the United States approach trade and investment issues. Aso and Pence agreed to hold the next round in the United States by the end of the year.

"Japan and the United States should exercise leadership in establishing high standards for trade and investment, and promote free and fair trade rules in the Asia-Pacific region," Aso said.

"I believe that we have turned an important page to enhance cooperation," he said.

Trump has taken issue with the United States' trade deficits with such countries as China and Japan, while maintaining that the U.S. dollar has strengthened too much against some currencies.

The launch of the dialogue was agreed during summit talks between Prime Minister Shinzo Abe and Trump in February.

Pushing his "America First" agenda, Trump has ordered a country-by-country, product-by-product review to determine the reasons for the U.S. trade deficits, saying he aims to promote "fair" trade.

The United States had a trade deficit of nearly $68.94 billion with Japan in 2016, smaller than the $347.04 billion deficit with China, according to U.S. government data.

Ahead of the talks, Economy, Trade and Industry Minister Hiroshige Seko and U.S. Commerce Secretary Wilbur Ross met in Tokyo, where they "made good progress" on continuing dialogue for economic cooperation, according to the Ross.

When asked about the path toward a Japan-U.S. free trade agreement, Ross said, "It's a little bit early to say just what form things will take, but we are certainly eager to increase our trade relationships with Japan and to do so in a form of an agreement."

Ross added that the commerce ministers will meet again in June in Washington. "Obviously a first high-level talk is not going to have an immediate resolution of anything but I think we have a reasonable path forward."

At the start of his meeting later Tuesday with Foreign Minister Fumio Kishida, Ross said he expects the dialogue to lead to a bilateral accord.

Earlier in March, Ross expressed eagerness to start negotiations with Japan at an early date for on an FTA, saying Washington considers it a "very high priority" to forge such a deal.

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Pence raises prospect of FTA as Japan, U.S. begin economic dialogue - The Mainichi

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TOKYO (Kyodo) -- Japan agreed with the United States on Tuesday to discuss a bilateral framework for trade and investment rules, as U.S. Vice President Mike Pence raised the prospect of a free trade agreement.

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Josie Baldzicki

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When you buy Fair Trade Certified goods you are making a choice that means quality products, improved lives and environmental protection. Every Purchase Matters. www.FairTradeUSA.org

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Jacob Thorsfeldt

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Jenna Palmer

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GUANGZHOU, China Higher costs and rising wages are among the top headaches for exporters at China's largest trade fair, but days after the first U.S.-China summit under the new president one topic of conversation buzzed about the vast halls: Donald Trump.

Trump made reversing the United States' long-standing trade deficit with China a key part of his election campaign. But while most gathered around thousands of booths at the Canton Fair in Guangzhou in southern China did not expect a trade war, a less predictable White House was the recurrent concern - at a time when domestic operating pressures are also increasing.

"Trump is a hot topic for us," said Alex Huang, an export manager with KoLice, a factory making ice cream equipment in Jiangmen city in the Pearl River Delta, southern China's export powerhouse region often dubbed the "world's workshop".

"You can't tell what he'll do tomorrow and it brings instability to business. I think he'll impose a big import tax."

Trump has softened talk on trade and tariffs, and reversed an earlier position that he would designate China as a currency manipulator - keeping its yuan low so that its goods are more competitive in international markets.

But analysts say Washington could get tougher with Beijing.

The White House has said U.S and Chinese officials are still at the early stages of "fleshing out" a pledge by Trump and China's President Xi Jinping to develop a 100-day plan to reduce the U.S. trade deficit with China, which last year reached $347 billion.

A Reuters survey of just over 100 exporters in the first phase of the Canton Fair - focused on electronics, household appliances, machinery and construction materials - found 40 percent expected a trade war with the United States.

The survey covers largely small and medium-sized manufacturers who dominate the fair and does not encompass all segments of the export industry, but the fair is widely seen as a bellwether and many attendees expressed anxiety about relations with the United States.

More than 70 percent expected China to react if Trump imposed an import tariff, a body blow to exports that rose in March at their fastest pace in little more than two years.

Some U.S. buyers said they did not see that happening, however, because they would be hit too.

"I don't think he'll do it," said John Cevik, a buyer with Aflex Packaging in Virginia, who was on the hunt for Chinese packaging equipment and new suppliers.

"I'll just have to raise my prices and the (U.S.) consumer will suffer... America cannot do anything to China like this ... these countries are bound together."

EXPORT CLOUDS

The biannual fair bringing together tens of thousands of international buyers and Chinese manufacturers has long been a barometer for the economy of China, the world's biggest exporter.

A forecast-beating trade performance helped growth accelerate to 6.9 percent in the first three months of 2017, its fastest quarterly pace since 2015.

But China's export dominance is under threat as labor, material and production costs soar. Scores of labor intensive factories have uprooted in recent years to cheaper countries in Southeast Asia and beyond.

Still, with the global economy showing signs of picking up, the cavernous exhibition halls at the Canton Fair, filled with everything from flatscreen TVs to ice cream makers, car fenders and optical cables, seemed to be teeming with a larger numbers of international buyers than in recent times.

"It's much busier than I've seen for a few years," said an auto parts maker, Belinda Ho. "There are more people, but less quality customers who place big orders. Many are just looking."

China's exports have accelerated and 73 percent of those polled said they expected their orders to increase this year.

While many reported they were not highly dependent on the United States, with Southeast Asia, the Middle East, Africa and Europe also important amid global diversification of customers - they do fear broader repercussions should tariffs and protectionism escalate between the two superpowers.

Forty-nine percent of those polled said they expected overall exports to be flat this year, 19 percent expect the export rebound to last between 6-12 months, while 18 percent say exports would slow despite March's frothy trade numbers.

For most, the headaches were rising costs.

China's producer price inflation has been on a tear, as raw material prices soar, cooling in March for the first time in seven months.

Joe Chung, the boss of Atlantis, a manufacturer of ceramic tiles and quartz construction surfaces at a factory in Guangdong province, said production cost increases over the past two years had been significant, especially the rising cost of power, which is now eating into his margins.

"China gets more expensive every year for manufacturers and it is getting tougher," he said.

Others, such as auto parts maker Belinda Ho, agreed - production costs were the single greatest concern, followed by new orders and wages: "It's harder and harder for factories in China."

(Reporting by James Pomfret, Venus Wu and Katy Wong; Editing by Clara Ferreira Marques and Alex Richardson)

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Trump talk tempers exporters' optimism at top China trade fair

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GUANGZHOU, China Higher costs and rising wages are among the top headaches for exporters at China's largest trade fair, but days after the first U.S.-China summit under the new president one topic of conversation buzzed about the vast halls: Donald Trump. Trump made reversing the United States' long-standing trade deficit with China a key part of his election campaign.

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Josie Baldzicki

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Jenna Palmer

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Josie Baldzicki

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Fair trade helps make the right choices the easiest ones. Look for the Fair Trade Certified™ seal when you shop. Find fair trade products here.

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Jacob Thorsfeldt

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Josie Baldzicki

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Created using PowToon -- Free sign up at http://www.powtoon.com/ . Make your own animated videos and animated presentations for free. PowToon is a free tool that allows you to develop cool animated clips and animated presentations for your website, office meeting, sales pitch, nonprofit fundraiser, product launch, video resume, or anything else you could use an animated explainer video.

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Jacob Thorsfeldt

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It's Fairtrade Fortnight, and while this may seem like just another one of those 'awareness' days pumping through our social media streams at a bizarrely high rate (Waffle day, Nutella day... seriously, how does a garbage food like Nutella get its own day?), it's actually one of the most important events of the entire year.

Marathon training week 13: The final push

Like it or not, we as a society consume at an accelerating rate, fashion, food, homewares... speaking to some people you'd think the money was burning a hole straight through their pocket, and where that money goes and who it influences is essential thinking we all need to get on board with.

Fairtrade is gradually empowering communities to organise into cooperatives and improve their negotiating position within the supply chain. It's completely transforming ways of living at multiple levels of the supply chain, giving people new self-worth and ownership over their livelihoods.

How does it work?

Today we want to remove all of those confusing buzzwords and nuanced definitions and introduce you to two amazing people who have had their lives completely transformed by joining their local Fairtrade co-operative.

Meet Edson

Edson Moatchedwe is a 45-year-old tea farmer and dedicated father of seven in Malawi.

Edson is the Chairman of Sukambizi Association Trust (SAT), where he helps educate and empower his local community about more sustainable farming techniques. We're not just talking sustainable for the planet, but sustainable for them, their families and the community as a whole.

It's not even just the local community, Edson will often borrow a motorbike belonging to a fellow SAT member so he can reach more farmers to train them in better agricultural practices - kind of like a Fairtrade James Bond, if you will. The motorbike was purchased using Fairtrade Premium, making it a communal tool for locals to help better their lives.

Fairtrade Premium has also allowed local farmers to buy an ambulance, which Edson reveals saved his children's lives when they had malaria.There's also a new school on the way (thanks again to Fairtrade Premium investments), which Edson feels will cut down on the number of pupils that leave because it's closer to the community.

Edson's children currently travel at least an hour to get to school - the new one will take around 10 minutes to reach, he says.

'I feel great, because the children's future is tied to education'.

Another business decision the SAT co-operative made was to invest the Premium in a bridge to link a nearby village, opening it up to vehicles for the first time, making transporting the tea crop more efficient and trading easier.

None of this could have happened without the Fairtrade process.

Meet Tsala

Tsala Mwale is a 28-year-old single mother of one, and a pioneer in her village where she was the first to bring solar power to her home.

This Premium-funded initiative reduces the needs to use paraffin for lighting so Tsala can save money. She explains, 'We are now able to buy things like soap, sugar and other necessities we could not afford.'

Like so many mothers, Tsala struggles to balance the need to work with family life, so her mother looks after Tsala's six-year-old child in her home village, while Tsala lives on the Satemwa Tea Estate during the week to do her job in the tea processing factory.

It's a two-hour walk between the estate and the village.

'My heart is always set on seeing my child, that is all that matters to me', Tsala says.

The biggest challenge Tsala faces is food running out before the month ends. The Premium Committee - a body of elected workers' representatives who decide on how to invest the Fairtrade Premium - has used it to supply maize at low cost to workers during the lean months of December, January and February.

Tsala's sister has benefitted from her sibling being a member of the co-operative, too. The family couldn't afford for her to go to school and so she had to leave - she has returned, with a bursary paid for by the Fairtrade Premium.

The village borehole (also a Premium project) gives the community clean drinking water.

Tsala's working environment has improved, too. 'We now get three uniforms and safety boots, things we never used to have'. That's because being part of Fairtrade means the estate must meet the Fairtrade Standards, which include providing safety equipment for workers.

How can I buy FairTrade?

MORE: These are the ethical products Lush is releasing for Fairtrade Fortnight 2017

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Fairtrade is changing lives and this is how

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It's Fairtrade Fortnight, and while this may seem like just another one of those 'awareness' days pumping through our social media streams at a bizarrely high rate (Waffle day, Nutella day... seriously, how does a garbage food like Nutella get its own day?), it's actually one of the most important events of the entire year.

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Jenna Palmer