The announcement was made by Councillor Neil Wilson, executive member for equalities and social inclusion, at A Taste of Fairtrade, an event held at THE hub in Star Lane, Canning Town.

To gain the Fairtrade Borough status, Newham Council passed a resolution at its September meeting supporting Fairtrade and to serve Fairtrade coffee and tea at its meetings and in offices.

The borough also had to show that there is a range of Fairtrade products readily available in shops and served in cafés and catering establishments, as well as in a number of workplaces, educational establishments, faith communities and community organisations.

Another condition was that the local campaign attracts media coverage, organises events and has a steering group which meets regularly.

The status follows the news that Silvertown-based sugar firm Tate & Lyle is to be Fairtrade accredited. This means Tate & Lyle products will carry the Fairtrade mark, which is an independent label that appears on products as a guarantee that producers in the developing world are getting a good deal.

Cllr Christine Bowden said: "This is great news. The council, Newham Food Access Partnership, faith groups, businesses and residents set up the Newham Fairtrade Network and has worked tirelessly to achieve this award.

"This is just the beginning. Each and everyone of us has to take this forward and be responsible for spreading the word and encouraging our friends, families and colleagues to buy Fairtrade and encourage our local shops to stock Fairtrade goods."

Cllr Neil Wilson said: "Attaining this award has required an enormous effort by the volunteers who make up the Newham Fairtrade Network. They have worked with businesses, faith groups and other organisations, to inform them of the benefits of using Fairtrade products and, of course, the bigger picture of what Fairtrade really means.

"I'm committed to ensuring the changes taking place here in the borough will improve the prosperity for our own business community and create employment opportunities. By embracing the Fairtrade principles, this commitment will affect the lives of communities all over the world, helping them to raise their aspirations to achieve for themselves."

Hannah Reed, Fairtrade Towns Co-ordinator at the Fairtrade Foundation said: "We congratulate Newham for becoming a Fairtrade Borough. This achievement has involved years of hard work and has succeeded in uniting many different parts of the community towards a common goal.

"As London campaigns to become the World's largest Fairtrade City, the London Borough of Newham is a shining example of what it means to become a Fairtrade community and I'd like to thank everyone who has been involved and urge others to come on board.

"As a community, Newham residents have joined forces to help raise awareness of the urgent need for better terms of trade for producers, workers and their families in the developing world. With two billion working people around the world earning less than $2 per day, now is the time to support Fairtrade."