We had to borrow a page from safia minney on this one, who explained it concisely and thoughtfully in a People Tree blog post:
Fair trade fashion
Fair trade fashion is a product – clothing or accessory that is made by a fair trade certified group that works to the world fair trade organizations 10 fair trade principals – see them here. primarily fair trade fashion is fashion created with a goal of empowering marginalized people while paying them a fair wage and ensuring fair working conditions.
Fair trade fashion is sometimes covered by a wider term ‘ethical fashion’. fair trade fashion may also incorporate sustainable practice, including the use of organic cotton, achieving soil association organic certification, safe dyes and carbon neutral production methods.
Sustainable fashion
Sustainable fashion is a product that is often made to environmentally-friendly standards including eco fibers like certified organic cotton, up-cycled and recycled fabrics, reclaimed and fabric off cuts. Some new fibers like bamboo, hemp and linen are also included, but depending on the methods of processing bamboo and hemp, these fabrics are not always considered environmentally-friendly. Some people will group fair trade fashion under sustainable fashion as the production is considered ‘sustainable’ to communities of farmers and artisans in providing livelihoods and investing in eco-projects.
Ethical fashion
Ethical fashion is a broader term that can encompass fair trade and sustainable fashion but is not always explicit. Ethical fashion has no distinct set of rules, practices or governing body. Ethical fashion emerged out of the broad school of ethical, responsible consumption in the early 90’s, and is based on a ‘do no harm’ principle. It includes fair trade concerns, but also encompasses organic and recycling issues, as well as paying attention to animal husbandry practices and the overall activities of a company. Ethical fashion includes pioneering brands working on everything from up-cycling (reclaiming fabrics from second-hand or end of roll) to fair trade hand-knitted hats and a range of 100% organic t-shirts. For example sustainable fabrics sourced abroad but cut sewn and trimmed in the UK would be considered ethical.