{"id":4620,"date":"2020-02-06T19:19:15","date_gmt":"2020-02-06T18:19:15","guid":{"rendered":"https:\/\/www.fairsquared.com\/fair-squared\/faq\/fairer-handel\/"},"modified":"2026-08-27T00:01:11","modified_gmt":"2026-08-26T22:01:11","slug":"fair-trade","status":"publish","type":"page","link":"https:\/\/www.fairsquared.com\/en\/fair-squared\/faq\/fair-trade\/","title":{"rendered":"Fair Trade"},"content":{"rendered":"\n

FAQ on Fair Trade<\/strong><\/h1>\n\n\n\n

\u201cFair\u201d \u2013 a much-used word \u2013 what\u2019s behind it?<\/strong><\/h2>\n\n\n\n

A number of terms have become established around Fair Trade:<\/p>\n\n\n\n

\u201cfair trade\u201d (lowercase): fair conduct in the exchange of goods \u2013 workers\u2019 rights, tariffs, subsidies and, above all, fair dealings with business partners and producers.<\/p>\n\n\n\n

\u201cFair Trade\u201d (capitalized): the entire fair trade movement \u2013 including organizations and companies with other fair trade seals, or with no certification at all \u2013 as long as they meet the essential criteria, such as changing conventional world trade and supporting producers.<\/p>\n\n\n\n

\u201cFairtrade\u201d (one word): the activities of Fairtrade International (FLO), the national Fairtrade organizations and the Fairtrade producer networks \u2013 a system that certifies products and traders according to FLO standards.
<\/p>\n\n\n\n

What does Fairtrade mean?<\/strong><\/h2>\n\n\n\n

At its center are smallholder farmers and workers in the Global South, whose position on the world market is deliberately strengthened. Only products that meet international Fairtrade standards may carry the seal. Key components:<\/p>\n\n\n\n

    \n
  • A guaranteed minimum wage, along with support for improving living and working conditions.<\/li>\n\n\n\n
  • Guaranteed fair prices that cover at least production costs and a living income.<\/li>\n\n\n\n
  • A ban on health-damaging practices, forced labor, discrimination and exploitative child labor.<\/li>\n\n\n\n
  • A Fairtrade premium for social projects such as well construction, education or medical care.<\/li>\n\n\n\n
  • Long-term trading relationships that make it easier for producers to plan for the future.<\/li>\n\n\n\n
  • Support for converting to organic farming, a premium for organic goods, and environmental standards that restrict or prohibit pesticides, chemicals and genetically modified seeds.<\/li>\n\n\n\n
  • Greater equality in international trade through dialogue, transparency and mutual respect.<\/li>\n<\/ul>\n\n\n\n

    The goal is responsible consumption that reduces poverty in the Global South. Around 2 million farmers and workers in around 70 countries currently benefit from Fairtrade (Source: Fairtrade International, Annual and Impact Report 2025\/26, fairtrade.net).e producers and the consumers. People who buy Fairtrade-products contribute directly through their purchase to a sustainable improvement of small-scale farmers and their families. At the time being, 1.3 million small-scale farmers and workers in over 70 countries are profiting from Fair Trade.<\/p>\n\n\n\n

    Why do some products carry the label \u201cfairly traded\u201d without bearing the Fairtrade seal?<\/strong><\/h2>\n\n\n\n

    Some organizations have been committed to fair trade for many years \u2013 often longer than Fairtrade certification has even existed. Some also offer products for which no Fairtrade standards exist at all, such as handicrafts. \u201cFair trade\u201d or \u201cfairly traded\u201d is not a protected term, so it\u2019s always worth asking exactly what such claims are based on. As of September 28, 2026, lawmakers have introduced new rules on this: fair labels must be certified by an independent, qualified third party, and there are extensive transparency requirements.<\/p>\n\n\n\n

    What is the Fairtrade?<\/h2>\n\n\n\n

    Fairtrade International (FLO) is the umbrella organization of the national Fairtrade organizations, founded in Bonn in 1997. The system consists of two branches: Fairtrade International develops the standards, while FLOCERT monitors compliance with them \u2013 ensuring that wherever it says \u201cfair\u201d on the label, there really is \u201cfair\u201d inside.<\/p>\n\n\n\n

    Today, it comprises three producer networks, 25 national Fairtrade organizations (Fairtrade Deutschland e. V. in Germany, the Max Havelaar Foundation in Switzerland, and Fairtrade Austria in Austria), Fairtrade International and FLOCERT. According to the German Forum Fairer Handel, the Fairtrade seal is the best-known and one of the strictest labels in fair trade. Certified products include coffee, bananas, cotton, jewelry, wood, gold and cosmetics, among others.ingredients that have been produced under fair conditions. Ingredients such as coffee, bananas, cotton, cosmetics, jewelry, as well as wood and gold.<\/p>\n\n\n\n

    What exactly does Fairtrade do?<\/h2>\n\n\n\n

    Fairtrade International is a non-governmental organization that develops the standards and supports producer groups. All Fairtrade producers and workers, as well as traders and companies that use the seal, must comply with the standards \u2013 as must other supply chain actors such as importers, exporters and licensees. On the ground, \u201cliaison officers\u201d support producers with training, certification advice and contact with traders.<\/p>\n\n\n\n

    What are the Fairtrade standards?<\/h2>\n\n\n\n

    Economic, environmental and social criteria form the three pillars of the Fairtrade standards \u2013 the rules that all producers and traders must follow. They are developed by Fairtrade International\u2019s Standards Department together with producers, traders and experts. They consist of mandatory core requirements for initial certification, as well as more extensive development indicators that must then be met step by step.<\/p>\n\n\n\n

    What exactly is Fairtrade about FAIR SQUARED products?<\/strong><\/h2>\n\n\n\n

    If an ingredient exists anywhere in the world in a Fairtrade-certified form \u2013 such as valuable apricot kernel oil \u2013 we use it. Some cosmetic ingredients still cannot be produced fairly today and are therefore not included in the Fairtrade percentage declared on each product.<\/p>\n\n\n\n

    For \u201cleave-on\u201d products, which remain on the skin, the Fairtrade share is at least 5%; for \u201crinse-off\u201d products such as soaps, it\u2019s at least 2%. That may not sound especially \u201cfair\u201d at first \u2013 the reason is that water, which makes up as much as 90% of many cosmetics, can never be fairly traded in principle, yet it is still included in the declared wet weight. If you factor it out, the average Fairtrade share of our cosmetics is over 35%. The remaining percentage consists of natural ingredients that are not (yet) available as Fairtrade raw materials.<\/p>\n\n\n\n

    How are Fairtrade producers and traders monitored?<\/strong><\/h2>\n\n\n\n

    After initial certification, annual audits follow, along with a comprehensive re-certification every three years. FLOCERT, Fairtrade International\u2019s independent certification body, carries out on-site inspections in over 115 countries to check whether the social, economic and environmental standards are being met \u2013 including the payment of the minimum price and the premium.<\/p>\n\n\n\n

    Does the money actually reach the producers?<\/strong><\/h2>\n\n\n\n

    FFAIR SQUARED sources all available ingredients from Fairtrade producers, who are regularly monitored by FLO \u2013 including the minimum price and an additional premium for better living conditions. This external oversight is important so that consumers can be sure the money really does get through: unfortunately, there are also \u201cfairwashers\u201d who advertise as \u201cfairly traded\u201d without any verifiable Fairtrade behind it. The official seal is what builds trust here. We visit many of our producer partners in person, and after every trip we are deeply impressed anew by how much Fairtrade can change people\u2019s living conditions.<\/p>\n\n\n\n

    Is fair trade really fair?<\/h2>\n\n\n\n

    Given that there are various labeling initiatives, and that fair trade is influenced by a constantly shifting global political landscape, this is a fair question to ask. The most common points of criticism \u2013 and our responses:<\/p>\n\n\n\n

      \n
    • Certification costs are incurred by producers before a buyer is even in place. \u2192 For financially weaker cooperatives, the Fairtrade system provides a fund that bridges this gap.<\/li>\n\n\n\n
    • The Fairtrade licensing fee (3% for cosmetics) is calculated on the final price, not on the Fairtrade share. \u2192 True \u2013 for cosmetics, this actually benefits the system, since the high water content could never be sourced fairly anyway.<\/li>\n\n\n\n
    • Farmers receive only a fraction of the Fairtrade premium. \u2192 Retailers in Europe demand net margins of up to 40\u201360% for distribution \u2013 but without the many traders involved, Fairtrade farmers wouldn\u2019t be able to sell nearly as much. Living out the fair trade principle at every step remains important here.<\/li>\n\n\n\n
    • Migrant workers sometimes don\u2019t benefit from the Fairtrade minimum wage. \u2192 This is a known gap in the system that is being worked on. To our current knowledge, this does not apply to our partner companies.<\/li>\n<\/ul>\n\n\n\n

      <\/p>\n","protected":false},"excerpt":{"rendered":"

      FAQ on Fair Trade \u201cFair\u201d \u2013 a much-used word \u2013 what\u2019s behind it? A number of terms have become established around Fair Trade: \u201cfair trade\u201d (lowercase): fair conduct in the exchange of goods \u2013 workers\u2019 rights, tariffs, subsidies and, above all, fair dealings with business partners and producers. […]<\/p>\n","protected":false},"author":5,"featured_media":0,"parent":1039,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-4620","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.fairsquared.com\/en\/wp-json\/wp\/v2\/pages\/4620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fairsquared.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.fairsquared.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.fairsquared.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fairsquared.com\/en\/wp-json\/wp\/v2\/comments?post=4620"}],"version-history":[{"count":5,"href":"https:\/\/www.fairsquared.com\/en\/wp-json\/wp\/v2\/pages\/4620\/revisions"}],"predecessor-version":[{"id":20118,"href":"https:\/\/www.fairsquared.com\/en\/wp-json\/wp\/v2\/pages\/4620\/revisions\/20118"}],"up":[{"embeddable":true,"href":"https:\/\/www.fairsquared.com\/en\/wp-json\/wp\/v2\/pages\/1039"}],"wp:attachment":[{"href":"https:\/\/www.fairsquared.com\/en\/wp-json\/wp\/v2\/media?parent=4620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}