International trade does not benefit everyone in the world. Many people live in poverty, are not treated with dignity and do not receive a fair income for their labour. This has led to the emergence of the concept of Fair Trade, which aims to guarantee that producers in less developed countries receive a fair price that not only reflects the true costs of their production and work, but also makes socially just and environmentally sound production possible.

An increasing number of Fair Trade products such as coffee, tea, fruit and fruit juices, snacks and handicrafts are available on European markets. The EU is by far the largest market for Fair Trade products, accounting for 60 to 70% of worldwide sales. Since 2000 the market for Fair Trade products has been growing at 20% per year, with a total retail value of €660 million (Source: Fair Trade in Europe 2005, FINE).

On 6th July, 2006 the European Parliament adopted a resolution on Fair Trade and Development (A6-0207/2006) indicating the Parliament's full support for the concept of Fair Trade and providing a useable definition.

European public authorities are major consumers of such products for use in canteens, vending machines and catering at events and meetings. This purchasing power represents a huge opportunity for boosting the market share of Fair Trade products.

Public authorities have a key role to play in supporting Fair Trade

Benefits for public authorities

• Contribution to sustainable development - Fair Trade represents an effective alternative to development aid in helping to reduce poverty and improve working conditions in the developing world
• Good image - Fair Trade has very high recognition and approval among the general public
• Value for money - Price differences are often small and surveys have shown that Fair Trade pro ducts simply taste better!
• Attractive, stable and transparent market - The market for Fair Trade products is rapidl expanding,as products move from the niche to the mass market, with a highly transparent supply chain                                                                                                                                                 

What does Fair Trade mean?

Fair Trade involves deliberately working with marginalised producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency. It means empowering producers and workers as stakeholders in their own organisations to actively play a wider role in the global arena to achieve greater equity in international trade.

There are a number of core principles in Fair Trade:

• Equal partnership and respect between producers and consumers
• A fair price for socially just and environmentally sound work
• Healthy working conditions
• Fair market access for poverty alleviation and sustainable development
• Stable, transparent and long-term partnership
• Guaranteed minimum wages and prompt payment
• Financial assistance, when needed (pre-harvest or pre-production            financing)                                                                                                                                     
• Premiums on Fair Trade products used to develop community projects                                                                                   
• Encouraging better environmental practices