Fair Trade Certification

Fair trade certification (usually simply Fairtrade or Fair Trade CertifiedT in the US) is a product certification system formulated to allow people to identify products that meet internationally agreed environmental, labour and developmental standards.

Overseen by a standard-setting body, Fairtrade Labelling Organisations (FLO) International and a certification body, FLO-CERT, the system requires independent auditing of producers to ensure compliance with the agreed standards. Companies offering products that conform to the Fair trade standards can apply for licences to use the Fairtrade Certification Mark for those products.

The FLO International Fairtrade certification system covers a wide range of products, including bananas, cocoa, oranges, honey, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, spices, rice, sugar, tea and wine.

Like most developmental efforts, "fair trade" has encountered its share of controversies and has taken flak from both ends of the political spectrum. Some economists and conservative think tanks perceive "fair trade" as a type of subsidy that impedes growth. Segments of the left criticize fair trade for not effectively challenging the current trading system.

In 2006, Fairtrade-certified sales totalled approximately ?1.6 billion worldwide, a 41 % year-to-year increase. Sales are expected to grow significantly in the coming years: according to the 2005 Just-Food Global Market Review, Fairtrade sales should amount to US$ 9 billion in 2012 and US$ 20-25 billion by 2020.

As per December 2006, 569 producer organisations in 58 developing countries were FLO-CERT Fairtrade-certified.