History of Fair Trade
1950s After World War II, Oxfam UK begins selling the crafts made by Chinese refugees to the UK market.
1958 The first “formal” fair trade shop opened in the US.
1968 During the second UNCTAD (United Nations Conference on Trade and Development) conference, the phrase “Trade Not Aid” was conceived. This established the link between the fair trade movement and development trade, which grew as a response to poverty, and sometimes disaster, in developing countries.
1969 The first “Third World Shop” opened. World Shops, or Fair Trade Shops, have always played an important role in the fair trade movement.
1973 Fair Trade Originals in the Netherlands imported the first “fairly traded” coffee from cooperatives of small farmers in Guatemala.
Late 1970s Several non-governmental organizations (NGOs) and other socially motivated entrepreneurs in the US and Canada, who were concerned about the producers in developing countries, began to meet regularly, exchange ideas and network. This group would eventually evolve into the Fair Trade Federation. They incorporated in 1994.
1987 The founding of the European Fair Trade Association (EFTA), an association of the 11 largest importing organizations in Europe.
1988 When world coffee prices started to plummet, a Dutch NGO, Solidaridad, created the first Fair Trade Initiative. Named after a bestselling 19th century book, the Max Havelaar label initially applied only to coffee in the Netherlands. It was meant to offer a “fair” price to small farmers hurt by the unpredictability of the market. First “fairtrade” coffee from Mexico is sold in Dutch supermarkets under the “Max Havelaar” label.
1989 The World Fair Trade Organization (formerly IFAT) was founded as a global network of organizations that are committed to improving the livelihoods of disadvantaged artisans through trade and to provide a forum for the exchange of ideas.
Late 1980s/Early 1990s The Max Havelaar labeling initiative is duplicated in several other markets across Europe and North America. They were: “Max Havelaar” in Belgium, Switzerland, Denmark, Norway and France; “TransFair” in Germany, Austria, Luxembourg, Italy, US, Canada and Japan; “Fairtrade Mark” in the UK and Ireland; “Rattvisemarkt” in Sweden and “Reilu Kauppa” in Finland.
1992 First “fairtrade” coffee sold in the UK by Cafédirect, a partnership created by Oxfam, Traidcraft, Equal Exchange and Twin Trading.
1994 The Network of European World Shops (NEWS!) was formally established and represents approximately 3000 World Shops in 20 European countries. NEWS coordinates European campaigns, awareness raising and development of sales within the network.
1997 Fairtrade Labelling Organizations International (FLO) is established in Bonn, Germany to unite the labelling initiatives under one umbrella organization and to establish worldwide standards and certification.
1998 TransFair begins certifying fair trade coffee, tea and cocoa in the US as global sales boom. TransFair USA claims that they have certified over 74 million pounds of fair trade coffee, adding $60 million USD of additional income for small farmers in developing countries.
2002 FLO launches a new International Fairtrade Certification Mark. The aim was to increase the visibility of the mark in stores, facilitate cross border trade and to simplify the export process for both the producer and exporter.
2004 FLO splits into two independent organizations: FLO International, which sets fairtrade standards and provides producers with business support; and FLO-CERT, which inspects and certifies producer organizations and audits traders.
2006 The Fairtrade Certification Mark coordination process is still under way. All but two labelling initiatives (TransFair USA and Max Havelaar) have adopted the new International Fairtrade Certification mark.
2007 Twenty-one Labelling Initiatives are members of FLO International. The newest members are Mexico, Australia and New Zealand.
2009 UK-based Pachacuti, a fairtrade retailer, is the first member of the World Fair Trade Organization (WFTO) to finish the pilot certification process using the Sustainable Fair Trade Management System (SFTMS V.2). The SFTMS V.2 is an authentication tool that certifies organizations against the 10 Fair Trade Principles of the WFTO. The evaluation includes both internal and external audit verifications of the entire supply chain of Pachacuti.
