In this essay I want to discuss the issue of Fair Trade and how Fair Trade can contribute to social justice. First I will give a short definition what Fair Trade actually is and then I will give an overview about the different Fair Trade organisations and define the standards which they follow. Then I will have a look at the producers and also the products which are available. I will analyse their sales statistic and also their market share.
Fairtrade is a “trading partnership” which tries to maintain “respect, dialogue, transparency, and increased more fairness in international trade” . Fair Trade tries to better the situation of developing countries by paying a “fair” price for certain products that is higher than the market price. In the last few years, Fairtrade has becoming more and more popular in the industrialized world. The supporter’s base is often also engaged in debates with political decision-makers in the European institutions for the purpose of making international trade fairer. Fair Trade is definitely a form of ethical consumption, because as consumption is one aspect of human behaviour that could harm other human beings.
Table of Contents
1. Introduction
2.1 Definition of Fair Trade
2.2 Fairtrade organisations and standards
International Fairtrade Organisation (IFAT)
FLO International
2.3 Labelling
Criteria of Certification
Differences and similarities between Bio and Fair Trade
The Fairtrade Mark TransFair
International Fairtrade Certification Mark
2.4 Producers
2.5 Products and Sales Channels
Food and Non-food Products
Importers and Retailers
2.6 Sales and image campaigns
Image campaigns
3. Discussion and critics:
Price Distortion
No diversification of Products
Unfair allocation of the profit margin
Only a image campaign
3.2 Excursion: Global free trade
The mercantilist idea
The liberal conception
Should we extend free trade?
4. Conclusion
Summary
Future outlook
Objectives and Topics
This essay examines the Fair Trade movement, analyzing its role in addressing economic disparities and promoting social justice in international trade. It investigates how Fair Trade standards operate, evaluates the effectiveness of current sales and marketing strategies, and critically discusses whether Fair Trade provides a viable alternative or supplement to conventional global free trade systems.
- Mechanisms and standards of international Fair Trade organizations.
- Evaluation of sales channels and consumer image campaigns.
- Economic criticism regarding price distortion and profit allocation.
- Theoretical comparison between mercantilist, liberal, and Fair Trade concepts.
Excerpt from the Book
2.1 Definition of Fair Trade
Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South. Fair Trade Organizations, backed by consumers, are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade. Fair Trade products are produced and traded in accordance with these principles — wherever possible verified by credible, independent assurance system.
This is the official and currently accepted definition of Fair Trade which has been agreed by the informal association of four international fair trade networks called FINE. Nevertheless Fair Trade is more than an alternative approach to conventional international trade. Fair Trade is a trading partnership which aims at development for excluded and disadvantaged producers. Fair Trade stands for providing better conditions, by awareness raising and by campaigning. Furthermore the trading partnership tries to fill the gap of unfair trading conditions. For both sides the farmers in the developing countries and for the consumers in the industrialized world. First the long-term and trustworthy cooperation’s helps the farmers in the developing countries. Fairtrade provides perspectives for fair prices that cover the production costs and leave a margin to the producer. Furthermore it offers a pre-payment on request and thus more planning certainty for producers. Second, it helps us consumers in the industrialized world, with a fair price because a cup of fairly traded coffee only costs two cents more than regular traded coffee.
Summary of Chapters
1. Introduction: The introduction outlines the persistence of poverty in developing nations and establishes the thesis that Fair Trade serves as a model for promoting social justice through conscious consumer behavior.
2.1 Definition of Fair Trade: This chapter provides the formal definition of Fair Trade as a partnership based on dialogue and equity, emphasizing its role in supporting marginalized producers.
2.2 Fairtrade organisations and standards: This section details the regulatory roles of the IFAT and FLO International in setting and monitoring standards for certification.
2.3 Labelling: The chapter explains the necessity of labeling to distinguish Fair Trade products and discusses the criteria and commonalities with biological (organic) certification.
2.4 Producers: This part focuses on the producers themselves, emphasizing that they seek fair market participation rather than mere charitable support.
2.5 Products and Sales Channels: An overview is provided regarding the diversity of goods offered and the crucial role that supermarkets and importers play in scaling the market.
2.6 Sales and image campaigns: This chapter analyzes how marketing and public image initiatives are essential for attracting new customers and expanding market share.
3. Discussion and critics: This critical section addresses economic arguments against Fair Trade, including potential price distortions and the uneven distribution of profit margins.
3.2 Excursion: Global free trade: This section provides a theoretical excursion into mercantilist and liberal economic thought to contextualize Fair Trade within the global trade system.
4. Conclusion: The conclusion summarizes the achievements of the Fair Trade movement and reflects on the challenges of its future expansion.
Keywords
Fair Trade, Sustainability, International Trade, IFAT, FLO International, Market Economy, Economic Development, Social Justice, Certification, Labeling, Price Distortion, Globalization, Mercantilism, Liberalism, Consumerism
Frequently Asked Questions
What is the primary focus of this essay?
The essay explores the concepts and practices of Fair Trade, analyzing how it attempts to provide a more equitable alternative to traditional international trade systems.
Which central topics are discussed in the work?
Key topics include the definition of Fair Trade, the role of certification bodies, market dynamics, sales channels, economic criticisms, and the theoretical underpinnings of free trade.
What is the core research goal?
The goal is to determine if Fair Trade is an effective mechanism for social development and whether it warrants significant future expansion.
What research methods were utilized?
The paper employs a qualitative analysis, utilizing institutional definitions, historical perspectives, and existing statistical data regarding market shares and trade practices.
What does the main body address?
It covers the operational structures of Fair Trade, such as standards and labeling, followed by a critical assessment of the movement's economic impacts and critiques from mainstream economists.
Which keywords best characterize this work?
Central terms include Fair Trade, sustainability, economic equity, global trade, market dynamics, and social responsibility.
How does the author view the 'Price Distortion' argument?
The author notes that critics argue Fair Trade can create excess supply and price floors that distort the market, potentially hindering long-term economic development.
What is the distinction between 'mercantilist' and 'liberal' views on trade as presented in the book?
The mercantilist view emphasizes maintaining a positive trade balance through protectionism, whereas the liberal view promotes international division of labor and reduced trade barriers for mutual prosperity.
- Citar trabajo
- Carsten Glöckner (Autor), 2009, Analysis of Fair Trade as a Concept of Sustainability, Múnich, GRIN Verlag, https://www.grin.com/document/130047
