The Fair World Project’s Statement on (FLO)

Fair trade is a social movement and market model that aims to empower small-scale farmers and consumers in underdeveloped countries to create an alternative trading system that supports equitable trading, sustainable development and long-term trading relationships. Fair trade supports fair prices and wages for producers, safe working conditions, investment in community development projects, and the elimination of child labor, workplace discrimination and exploitation. 
 
On September 15th, Fairtrade International (FLO) and Fair Trade USA (FTUSA) jointly announced that FTUSA is resigning its membership in FLO, effective December 31, 2011.

Fair Trade USA’s move raises many questions for fair trade producers in the Global South. Many producers rely heavily on the US market for sales and distribution. FTUSA’s rash exit from the FLO system will most certainly cause chaos in the near-term as FTUSA has failed to publish its own standards or details regarding its new labeling scheme. In the long run, everything from consumer apathy to competing labels that make similar claims will undermine the fair trade market and the overall positive impact for producers.
 
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