The harmonization of the various Fair Trade labels:

In the last post, we saw how fragmented the Fair Trade movement had become.  There were several labeling programs with no overarching standards.  The Fair Trade programs had to work with each other on a product by product basis, in what ended up being a time consuming and confusing process for suppliers.  In 1994 TransMax was formed to begin the process of unifying the various Fair Trade labels.

The Rise of Other Fair Trade Labels:

After the formation and success of the Max Havelaar label, several other Fair Trade labels sprang up around the globe.  The Transfair label was formed in Austria, Canada, Germany, Italy, Japan, Luxembourg and the United States.  The Fairtrade mark was used in Ireland and the UK (You won’t be tested on this, but it’s important to note that there were different Fair Trade groups based on geographic region).

Max Havelaar:

In the late 1980s the biggest limiting factor on the Fair Trade movement was that you had to shop at special stores if you wanted Fair Trade goods.  These stores were a great start, but they were limited in scope and couldn’t provide enough sales to make a significant difference with regards to coffee farmer poverty.  If the Fair Trade movement were to have a bigger impact, Fair Trade proponents needed to increase the market size of Fair Trade goods.

Equal Exchange:

The middle of the 1980s was a tough period for the Fair Trade movement.  Fashion trends changed and the popularity of Fair Trade handicrafts and jewelry was waning.  If Fair Trade was to regain momentum, it needed to go in a new direction.

In the early 1960s the British NGO (Non Governmental Organization) Oxfam began to sell handicrafts at their stores to help raise money.  The first handicrafts came from importers who purchased their goods from “sweat shop” style factories around the world.  Oxfam, through their importers, were able to buy products for extremely low prices and then able to turn around and sell them for a significant profit.