Fair Trade vs. fair trade: What’s the Difference and Why It Matters

Fair Trade vs. fair trade: What’s the Difference and Why It Matters

 

In the world of ethical shopping, the terms "Fair Trade" and "fair trade" are often used interchangeably, but they carry distinct meanings. Understanding the difference is key for consumers who care about where their products come from and how they’re made. Let's break it down.

"Fair Trade" (with capital letters)

Fair Trade (capitalised) refers to the certification system governed by organisations like Fairtrade International or Fair Trade USA. When you see a Fair Trade logo (image shown below) on a product, it means that the item has met rigorous standards in terms of fair wages, safe working conditions, and environmental sustainability. The certification ensures that farmers and workers receive a premium to invest in their communities and that the supply chain follows ethical practices from start to finish.

"fair trade" (lowercase)
The term "fair trade," on the other hand, is broader. It encompasses a philosophy or movement that supports ethical, transparent, and sustainable practices in global trade. While it advocates for equitable pay and working conditions, not every product labeled "fair trade" is necessarily certified by a governing body like Fairtrade International. It could simply mean that the company has adopted responsible sourcing practices, even if those practices haven't undergone formal certification.

Why It Matters
While both Fair Trade certification and fair trade practices support the same ethical goals, certification provides consumers with the assurance that the products meet set international standards. On the other hand, companies who engage in fair trade but don’t carry the certification may still be highly ethical, but they might lack the formal accreditation due to costs or specific business structures.

For those committed to shopping ethically, both options are worth considering.

By supporting brands that value fairness and sustainability—whether they’re certified or not—you’re contributing to a more equitable and ethical global marketplace.

Many of our makers don't fall under the Fair Trade umbrella due to it being an expensive exercise to become Fair Trade certified in addition to yearly fees. Our artisans in disadvantaged areas of the world follow the World Fair Trade Organizations 10 Fair Trade Principles that can also be read here. 

At Empower Fair Trade, we don't think it does overly matter, as long as the business prioritises people, the planet and incorporate the above principles!

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