By Robert Weldon

Experts believe that fair trade certification for gems, such as this 17.43-ct. amethyst, will follow the example of coffee beans, an industry in which certification covers an ever-growing portion of the market. Photo by Robert Weldon

To try and understand how fair trade relates to gems, consider this analogy: Think of gemstones as fair trade coffee beans (fair trade labels, up to now, have mostly been applied to agricultural products). Those of you who enjoy a brisk cup of Starbucks coffee have already been introduced to the idea from the company's pamphlets on the topic. What you learned transported you far beyond the taste of the coffee itself. You found out that the distinctive selections of various coffees at Starbucks ensure that small-scale growers overseas receive a fair price for the coffee, among other social requirements.

You probably also know that fair trade coffee costs a little more. In justifying the difference, however, you might decide that the choice you make to drink this coffee over another lets you play a small part in elevating the living conditions of someone less fortunate. Starbucks has succeeded in making you, and the rest of its customers, a partner in its fair trade efforts. Yet Starbucks admits it's only able to purchase a small (but growing) portion of coffee that's fair trade certified.

So what exactly is fair trade?

There is, in fact, a definition for the phrase "fair trade" agreed upon by four separate international networks with organizations in more than 20 countries. They defined it as follows in 2001:

"Fair trade is a trading partnership, [between buyers and producers] based on dialogue, transparency and respect, which seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South. Fair trade organizations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade."

The movement tries to alleviate poverty and build opportunity among small producers. Artisanal gemstone miners, for example, who often eke out a marginal living based on their labor, could benefit from fair trade principles. Organizations that espouse fair trade also pursue better business accountability, environmental responsibility, capacity building (by helping to develop and diversify a rural community's skills) and gender equality.

Many consumers, however, believe it is not enough for a company to simply declare its fair trade commitment. They are also demanding that independent entities monitor and certify a company's actions. The Fairtrade Labelling Organizations (FLO) International, which developed standards and a "Fairtrade Certification Mark," has done just that for the coffee trade and a variety of other agricultural products.

Even with certification, the movement has critics among traders, too. For example, despite growing demand for fair trade products, manufacturers say there are simply not enough fair trade certified materials to satisfy the market in most sectors. Large-scale producers, who operate ethically, point out that they "trade fairly," too. These challenges in agricultural fair trade may well visit the gem industry as the fair trade idea gains momentum.

Despite these criticisms, many producing countries, manufacturers and consumers – and some gemstone dealers – have embraced fair trade. Some gemstone dealers already follow fair trade principles – though as yet there is no FLO certified fair trade gemstone label.

FLO reports that in 2006 alone, 569 producer organizations from 58 countries around the world became "Fairtrade certified." Fair trade products (again, mostly agricultural) accounted for nearly $2.5 billion in sales in 2006 – a nearly 50 percent growth from 2005.

If a fair trade label is eventually developed for gems (there's a feasibility study taking place now to investigate whether such a label could be attached to diamonds, for example), chances are many miners could also benefit. For now, gem trade buyers interested in fair trade gems can seek out dealers who follow the fair trade movement's practices voluntarily.