• fair trade: international trade with a focus on sustainability and the rights of workers

  • protecting workers and small businesses in developing countries

fair trade standards

• mainly focused on trade from developing to developed countries

• fair trade-based organizations (generally nonprofits) bring to light the dark sides of international trade, namely exploitation of people and resources in developing countries

  • focus on economic, social, and environmental benefits of fair trade

  • three sets of actors and potential beneficiaries: workers, consumers, and producers

• fair trade for producers

  • the idea that a small portion of consumer price goes to the producer in a developing country

    • eg. Haitian sewing → sewers get a cut of the end price while the rest goes to wholesalers, importers, distributers, advertisers, retailers, etc.

• fair trade for workers

  • arguments against international trade

    • little government protection of workers

    • many work long hours under poor conditions for little pay

    • child labor and forced labor may be prevalant

    • poor sanitation and poor safety lead to poor health for workers

• fair trade aims to

  • raising the incomes of small-scale farmers and artisans by getting rid of some intermediaries in the supply chain

  • distributing production profits and risks more fairly between producers, distributors, retailers, and financiers

  • increasing the entrepreneurial and/or management skills of producers

  • promote safe and sustainable farming habits and working conditions

    • eg. eliminating the use of pesticides, herbicides, increasing the production of organic crops

• fair trade requires

  • wages high enough to support food, shelter, education, healthcare, etc. for workers → cover basic needs and pay a living wage rather than exploiting poverty for profits

  • ensured right to unionizing and bargaining

  • increased effective environmental regulations and improved safety standards

• international fair trade organizations set standards and serve to monitor, audit, and certify compliance with these standards

• farmers and artisans (co-ops) qualify for

  • credit for funds for equipment and improving farms

  • decreased cost of materials

  • producers democratically allocate resources, oversee safe and healthy working conditions to ensure their presence

  • profits invested directly into the community instead of being sent to corporate owners