Fairtrade
Fairtrade
is a global movement aiming to improve trading conditions for farmers,
especially those in developing countries, as well as promote environmental
sustainability of these goods. According
to the UN Conference on Trade and Development, being labeled as a “Fairtrade”
product or producer requires:
- Financial transparency and traceable sales of goods
- Ethical labor conditions (with respect to age, hours worked, working environment, and safety)
- Respect for the environment throughout production (including water and energy conservation, minimal usage of harsh chemicals, and respect for biological and ecological diversity)
Thus,
Fairtrade strives to make a difference in our world by promoting justice for
all individuals and environmental resources involved in global trade of
goods. While crops like cotton, bananas,
and coffee are some of the products most commonly associated with fair trade,
the term is evolving to also include manufactured products, like sports balls,
cosmetics, and 3D printer supplies. In
addition to the “Fairtrade Minimum Price,” setting a minimum sales price for
the just trade of each good, “Fairtrade Premiums” are additional payments (say,
for example, an extra $0.10 per pound of cotton) added to each sales price to
benefit the exporters. However, these
funds cannot simply be given to farmers as monetary bonuses; they must be spent
on other social causes, like education or health, to benefit the community, and
producers themselves decide how to allocate the money.
As more and
more products on developed world store shelves flaunt the “Fairtrade” label, many critics argue that the term has now become commercialized, and consequently,
laborers are still locked in our capitalistic market. As described in this BBC article, Third World
producers rely on Western World consumers to continue spending more on
Fairtrade products, and the Fairtrade label is arguably too focused on subtle
wage increases instead of actually building modern infrastructure and economies. Also, it is often reported that the working conditions of Fair-trade products are often no better than their non-Fairtrade counterparts. Despite these criticisms of its actual
effectiveness in the real world, Fairtrade is certainly an admirable cause, and
it has helped raise awareness about social justice issues within our global
markets. Looking to the future, consumers and distributers will hopefully use
this awareness to make more ethical decisions when engaging in world trade.