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Fair Trade Certification

May 1, 2017

Fair Trade Certification is a tool that allows agricultural products to bear the label "fair trade certified." The Fair Trade Certified label is a guarantee that Fair Trade prices and "social premiums"--funds dedicated to community development initiatives such as education, health systems, and women's empowerment projects, as well as productive investments in product quality or related areas--were paid to cooperatives or other farmers' and workers' organizations by U.S.-based companies offering FTC products. These payments are verified by TransFair USA's supply-chain auditing services. TransFair USA's certification process combines desk audits and periodic on-site inspections of U.S. production facilities. In addition, certified products are guaranteed to have been sourced from cooperatives or other organizations in the developing world that meet international standards for environmental performance and progress, democratic and transparent governance, and working conditions. These criteria are verified by regular on-site inspections carried out by TransFair USA's partners in the global Fair Trade certification and labeling network, which spans 21 countries in the global North together with 60 developing nations.