A fete is a celebration of someone or something in Britain too, but it's almost always associated with selling produce or paying to take part in competitions. A kind of amateur fairground. A couple of examples:
"To celebrate the church's centenary, we're having a fete to raise money for roof repairs. Would you like to organise the home-made cake stall?"
"Could you make something for the Labour Party bazaar? I know you're an expert at rag dolls, and we could sell them on the toy stall."
In short, virtually no difference in meaning except that fetes tend to be outdoor...?