Lancaster and Liverpool become Fairtrade cities on Friday.
Fairtrade benefits small producers in the developing world
It means all tea and coffee served in their Town Halls will come from sources which guarantee to give a decent wage to producers in developing countries.
Liverpool City Council is also using its influence to encourage shops, cafes, restaurants and other companies in the city to follow suit.
The cities join Garstang in Lancs which declared itself the first Fairtrade town.
So far, 22 cafes and restaurants and another 44 shops have signed up to the scheme, as well as a growing number of workplaces, churches and schools.
Liverpool city council leader Mike Storey said: "Through the Fairtrade initiative, we will be able to reach out to developing countries and give producers a helping hand and people living many thousands of miles away a better life.
"This is about Liverpool making a real difference to the lives of young children and their families living in poverty in some of the world's poorest countries.
"Our close contact with the business community means we can encourage bars, cafes, shops and other companies to follow our lead."
The city council has written to the top 200 businesses on Merseyside and all food retail organisations registered with Liverpool Chamber of Commerce, encouraging them to take part.
Sixth form pupils from Archbishop Blanch High School and St Hilda's High School, which are both Fairtrade schools, were due to attend Friday's Liverpool launch.
St Hilda's has sold £4,000 of Fairtrade chocolate since last September.
In 2002, £20.3m was received by producers from European sales of Fairtrade coffee alone.
UK sales of products with the Fairtrade Mark rose by 90 per cent between 2000 and 2002 to an estimated retail value of £63m.