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Fair trade is trade in which fair prices are paid to producers in developing countries. It based on partnership between consumers and producers. Fair trade improves the lives of those living in developing countries by offering small scale producers fair trade relations and a guaranteed minimum price. There are over 1.5 million workers and 1210 fair trade certified producer organizations in 74 countries (Fairtrade Labelling Organizations International, 2011). The fair trade USA coffee market has grown nearly 90% since it was established (TransFair USA, 2005). Fair trade was started as an alternative to free trade and has had a major positive impact on the world. They have a vision based on equality “”…To achieve this vision, Fairtrade seeks to transform trading structures and practices in favour of the poor and disadvantages. By facilitating trading partnerships based on equality and transparency…” (Fair Trade Foundation). Fair trade specifically focuses on solidarity and the well-being of producers. Fair trade should be encouraged and embraced. Improving the lives of those living in developing countries, the positive impact on women, the humane working conditions, reduction of child labor and the environmental protection are some of the many reasons why fair trade works and should be supported. A major aspect of fair trade is their focus on the quality of life for the producers in third world countries.
The main goal of fair traders to increase the quality of farmers and producing goods in third world countries. Impact assessments have been conducted that have found that fair trade can make a significant difference in the live of the workers. Fair trade supports farmers growing thing such as bananas, cocoa and coffee making them less vulnerable to poverty. Training and premium markets become more accessible which results in higher sales and better farming. Additional funding provided through fair trade supports things like better housing and more accessible and affordable food. Critics of fair trade have made some valid points about why fair trade dos not work such as pointing out one of the biggest flaws that is, that fair trade does not include or apply to all workers. The market share for fair trade is too small and does not impact the general living conditions of these developing countries. Despite the negative opinions on fair trade, they continue to fight for income security and poverty. Although fair trade focusses on the improving of all workers lives, they also specifically focus on the positive impact that they can have on the lives of women in these developing countries.
Women do most of the work in plantations and on farms but are treated unfairly and discriminated against. Fair trade is a known advocate for women rights. They are major supporters of gender equality, ensuring both mean and women have access to the same jobs and resources. The company does not discriminate in hiring, access to training, promotion, termination or retirement based on race, origin, religion, disability, gender, sexual orientation, political affiliation, HIV/Aids status or age. A major focus of fair trade has been their impact on the lives of women. Fair trades premiums help fund and support women empowerment programs. One of the focuses of fair trade is helping women realize their potential and get the respect they deserve. Female workers are guaranteed access to health care, certain job rights, and provided them with opportunities for education, leadership roles, and scholarships. “Thanks to Fair Trade, I sent my son to college to study engineering after my husband passed away. I was struggling to meet expenses with a single income. Without the assistance, I couldn’t have managed it. I am thankful to everybody behind this for helping people like us dream big.”(fairtradeusa.org, 2016). Fair trade organizations offer women the opportunity to work towards finial security and empowerment. A common argument is that fair trade does not do enough for the female workers. There is a lack in monitoring of the treatment of women in the workplace due to too little funding. It is believed that fair trade could being doing so much more for women. Despite supporting women being a major focus of fair trade, the working conditions for the workers is very important to them.
Fair trade helps workers realize their rights and negotiate the terms and conditions of their working conditions. Workers and famers are given the choice to work for fair trade. Fair trade enforces safe working conditions. “Organisations who buy Fair Trade products from producer groups either directly or through intermediaries ensure that no forced labour is used in production…”(world fair trade organization 2013). Not only does fair trade ensure humane working conditions, they also fight to prevent child labor in third world countries. It has been argued that fair trade does not monitor the working conditions in the workplace as well as they claim. Despite the thorough training the workers receive, the conditions of the work place can still be considered to pose a threat to the employees of these companies. Fair trade has worked hard to ensure that there is no forced labor within its workforce.
Fair trade is working to combat child labor in the workforce. Child labor for children under the age of 15 is prohibited within fair trade. Fair trade monitors any involvement of children in the workforce ensuring their well-being, security, and educational requirements. Child labor is a result of poverty and unfair terms of trade, it is also a result of exploitation, lack of access to quality education. “Local governments are working together with cocoa manufacturers and farmers themselves to address the root causes of child labor in order to get kids off of farms and into schools. And Fair Trade has proven to be one of the most effective tools for improvement.” (The Huffington Post 2016). Fair trade has raised the incomes for farmers so they can invest in their farms and hire adult workers. Premiums from fair trade are being used in communities and invested in things like education. Some believe that fair trade is not doing enough to prevent child labor. Their certified products are considered to be more expensive so consumers choose the cheaper options and end up supporting the child labor industry. Although reducing child labor in developing countries is a very big aspect of fair trade, the protection of the environment is a key element when it comes to fair trade.
Fair trade is a major advocate for environmental protection. The standards of fair trade promote training for workers that teach more environmentally friendly practices. Energy and greenhouse gas reduction, soil and water quality, prohibition of genetically modified organisms and dangerous chemicals and waste management are all things that are taught and encouraged by fair trade. “Farmers and workers must meet environmental Standards as part of certification. Producers are required to work to protect the natural environment and make environmental protection a part of farm management. They are also encouraged to minimize the use of energy, especially from non-renewable sources.” (Fairtrade Canada 2016). Fair trade provides financial aid and producer support to make following these environmentally friendly practice possible in developing countries. Certain harmful chemicals are prohibited as well as GMO’s. They are replacing harmful methods with safe and more natural methods to increase the health and safety of members. An issue that has been argued about the standard of fair trade is the costs of these standards being high, the cost of maintaining standards results in a lack in actually monitoring the standards they claim to up hold. Fair trade has been seeking to reduce their impact on the environment.
The positive effects of fair trade out weigh the negative results by far and it should be for all. A common argument against fair trade is that they have too many partnerships, but the problem is there are not enough partnerships. Fair trade has standards that all members whether consumers or producers must follow. Fair trade has been working towards many goals including the improvement the lives of those living in developing countries, the positive impact on women, the humane working conditions, reduction of child labor and the environmental protection.
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