4.5: fair trade

• 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

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