What is fair trade agriculture


Fair Trade Fair trade is a component of the quality of life and social justice aspects of agricultural sustainability. Learn more about fair trade in the U.S. and abroad, as well as standards and certifications available to farms and businesses that focus on the social aspects of agricultural sustainability.

Fair Trade is a set of business practices voluntarily adopted by the producers and buyers of agricultural commodities and hand-made crafts that are designed to advance many economic, social and environmental goals, including: Raising and stabilizing the incomes of small-scale farmers, farm workers, and artisans.Dec 1, 2021


What is fair trade and what does it mean?

What does fair trade mean, and why is it important? Put as simply as possible, fair trade is a set of business principles that prioritize the health, economic stability, human rights, and independence of disadvantaged producers of things all over the world.

Why is fair trade important, and not just for farmers?

Why Is Fair Trade Important, and Not Just for Farmers? When we think of fair trade, the first thing that often comes to mind is a farmer, producer, or artisan being paid a fair price for their product. But the Fairtrade movement covers more than that. The Fairtrade organisation aims to ensure that workers have a decent living standard.

What is Fairtrade and why is it important?

Why Is Fair Trade Important, and Not Just for Farmers? When we think of fair trade, the first thing that often comes to mind is a farmer, producer, or artisan being paid a fair price for their product. But the Fairtrade movement covers more than that. The Fairtrade organisation aims to ensure that workers have a decent living standard.

What company is not fair trade?

Whether or not these standards are viable, they are not Fair Trade Certified at this time. The U.S. Department of Labor has a list of locations and goods that use forced and child labor. Starbucks lists coffees from countries such as Guatamala, Kenya, Costa Rica and Panama; however, none of these single-sourced coffees are certified by them as …


What is Fairtrade farming?

Fairtrade is a system of certification that aims to ensure a set of standards are met in the production and supply of a product or ingredient. For farmers and workers, Fairtrade means workers’ rights, safer working conditions and fairer pay.

What is Fairtrade in simple terms?

“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.”

How does Fairtrade affect agricultural practices?

The research shows that Fairtrade certification increases the likelihood that farmers will practice agroforestry. Certification is negatively associated with planting grass—likely because there are more immediate benefits to trees from agroforestry rather than grass, and a farmer cannot effectively do both.

What are 2 examples of Fairtrade?

The Fairtrade certification system covers a growing range of products, including bananas, honey, coffee, oranges, Cocoa bean, cocoa, cotton, dried and fresh fruits and vegetables, juices, nuts and oil seeds, quinoa, rice, spices, sugar, tea, and wine.

What is fair trade and why is it important?

Fairtrade enables consumers to demand a better deal for those that produce our food. Through choosing Fairtrade consumers can demand the highest standards from business and government, ensuring people and planet are not exploited to create the products we enjoy.

What is the benefits of fair trade?

Fairtrade can improve food security which is closely linked to economic growth, stable incomes and reduced risk and vulnerability. If a farmer has a better income it means he or she has more money to buy food and more money to invest in growing more crops.

What is the impact of Fairtrade on small farmers?

Recent research showed that Fairtrade certification is associated with higher output prices and higher incomes among smallholder farmers in many situations (Dragusanu et al., 2014; Karki et al., 2016; Meemken, 2020; Sellare et al., 2020b).

What are the pros and cons of Fairtrade?

What Are the Pros of Fair Trade?There is an excellent wage system in place. … Community benefits extend to more than just basic needs. … Discrimination is not allowed. … Child labor can be reduced. … Social conditions can dramatically improve. … It allows small business owners to become internationally competitive.More items…•

Why is Fairtrade sustainable?

How Fairtrade protects the environment. Environmental protection is ingrained in Fairtrade. To sell Fairtrade products, farmers have to improve soil and water quality, manage pests, avoid using harmful chemicals, manage waste, reduce their greenhouse gas emissions and protect biodiversity.

What is the difference between free trade and fair trade?

Free trade emphasizes the need for less borders, restrictions, and tariffs on goods and services passing through countries and continents. Meanwhile, fair trade involves ensuring that the workers behind these goods and services are treated fairly and that human rights are maintained throughout the supply chain.

Where are fair trade products grown?

Argentina.Belize.Bolivia.Colombia.Costa Rica.Dominican Republic.Ethiopia.Ghana.More items…

Who started fair trade?

The earliest traces of Fair Trade in Europe date from the late 1950s when Oxfam UK started to sell crafts made by Chinese refugees in Oxfam shops. In 1964 it created the first Fair Trade Organization.

What is Fairtrade certification?

What. is. Fairtrade? Fairtrade is a system of certification that aims to ensure a set of standards are met in the production and supply of a product or ingredient. For farmers and workers, Fairtrade means workers’ rights, safer working conditions and fairer pay. For shoppers it means high quality, ethically produced products.

What does it mean to be fairtraded?

Choosing Fairtrade means standing with farmers for fairness and equality, against some of the biggest challenges the world faces. It means farmers creating change, from investing in climate friendly farming techniques to developing women in leadership.

When did Fair Trade start?

There is no consensus regarding a starting date of the fair trade movement. However, an instrumental development was a visit in 1946 by the pioneering American businesswoman Edna Ruth Byler to a women’s sewing group run by the Mennonite Central Committee (MCC) in Puerto Rico.

How did fair trade change the world?

Since the mid-20th century the fair trade movement has changed the lives of thousands of workers in developing countries by providing them with access to European and North American markets. The movement created a global industry and continues to expand, with organizations at all levels involved. Critics, however, have argued that the expansion …

What is international trade?

International trade, economic transactions that are made between countries. Among the items commonly traded are consumer goods, such as television sets and clothing; capital goods, such as machinery; and raw materials and food.

When was the EFTA established?

One year later, in 1990 , the European Fair Trade Association (EFTA) was formally established by 11 fair trade import organizations in nine European countries. In 1998 the FLO, IFAT, NEWS (Network of European World Shops), and EFTA established an informal working group called FINE (an acronym of the names of the member organizations).

What is Oxfam International?

Oxfam International, privately funded international organization that provides relief and development aid to impoverished or disaster-stricken communities worldwide. The original Oxfam was founded at Oxford, England, in 1942 to raise funds for the feeding of hungry children in war-torn Greece. It is…. Ottawa Agreements.

What are the core rules of fair trade?

They are both strong rules to guard against trade restrictions and are also manifestly fair. They promote fair trade by limiting government restrictions and legitimizing the trading system. Here in a nutshell are the key rules:

Why do regional trade agreements have to cover all trade?

There are conditions that a Regional Trade Agreement must substantially cover all trade to guard against arbitrary commercial preferences aimed at disadvantaging other countries. This rule has allowed countries to enter Free Trade Agreements which have helped boost global trade and expand incomes.

What is the lowest tariff on mangoes?

For example, if the United States imposes a 5 percent tariff on mango imports from the Philippines, and that is the lowest tariff it applies on mangoes, India is ensured that it will not be subject to a tariff higher than 5 percent.

What are non-tariff measures?

The second article of the GATT says non-tariff measures like quotas, bans, and variable import restrictions are prohibited. Countries can however use tariffs, but they are set at maximum levels (for example the U.S. tariff on beef cannot exceed 26.4 percent).

What happens if a country believes a trading partner is violating the rules?

If a country believes a trading partner is violating the rules, it can request a panel of experts to here the merits of the case and render a judgement. If the policy is found to be inconsistent with trade rules, the offending country needs to resolve the violation.

Why was it important to expand trade after the Great Depression?

Following the great depression and WWII, leaders in the United States recognized the importance of guarding against trade restrictions and wanted to expand trade to rebuild the world’s economies and foster closer diplomatic relations.

When did the GATT become the WTO?

Building on this success, in 1994 the GATT was converted to the WTO, with further rules agreed to and, importantly, a binding dispute settlement system established. The GATT, and now the WTO, have both helped expand trade and have established a set of rules that define ‘fair trade.’.

What is fair trade?

Definition and meaning. Fair trade can mean a social movement which aims to get developed nations to pay a ‘fair price’ for goods produced in developing countries. It also refers to only purchasing imports from places where employees are working in a safe and comfortable environment, and get paid reasonable wages.

Why is fair trade important?

Apart from being good for sales, it also helps enhance the quality of their brand name.

How many hours of work is fair trade?

That is approximately seven hours’ work in the US, UK, Canada, Ireland, or Australasia on the minimum wage. Every study so far reported that when asked, farmers claimed that fair trade was having a beneficial effect. It was having a beneficial effect on both their personal lives and their communities.

Why do Mexican farmers abandon their farms?

They claim this is partly the reason why they have to abandon their farms because they are unable to compete effectively against US’ artificial prices. Subsequently, they emigrate the USA looking for work.

Is there more to fair trade than just trading?

Fair trade more than just trading. WFTO says there is more to fair trade than just trading . It also: highlights the need for changes in the practice and rules of conventional trade, and also shows how a successful business can put people first,

What is the goal of fair trade?

The goal of Fair Trade is to reduce poverty for farmers and workers in developing countries. This means not just paying them more in the short term, but also helping them improve their skills, build up their communities, and protect the local environment so its resources will be there for future generations.

Why is fair trade important?

One reason for this is that they often cost more than other products in the same category. That’s hardly surprising, considering that Fair Trade pays farmers a higher price for their crops.

How to meet fair trade standards?

To meet Fair Trade standards, the collectives must be democratically run, with each farmer getting a vote, and must split their profits equally among all the members. 2. Fair Price. Fair Trade guarantees farmers a reasonable minimum price for their crops, no matter how low the market price falls.

Why did Fairtrade break away from Fairtrade?

The main reason for the split was that the two programs didn’t agree on what their standards should be for coffee growers. Fairtrade International requires all its coffee to be grown on democratically run, farmer-controlled collectives. Fair Trade USA, by contrast, hoped to expand Fair Trade by making certification available to coffee produced on large plantations, which are often run by a single large corporation, and by independent small farmers who do not belong to a collective.

What are the Fair Trade rules?

Fair Trade rules ban all forms of worker abuse, harassment, and discrimination, including discrimination based on political affiliation or union membership.

What is fair trade certification?

Fair Trade certification is a way of guaranteeing that both buyers and sellers stick to the principles of Fair Trade. There are several different organizations that certify Fair Trade products, each with its own label and its own set of standards.

How much did fair trade products cost in 2013?

Fair Trade products are a hot commodity. The British newspaper The Guardian reports that global sales of Fair Trade products rose by 15% in 2013, reaching a total of £4.4 billion ($6.55 billion). Worldwide, the Fair Trade movement that year supported more than 1.4 million farmers and workers in 74 countries.

How does fair trade work?

By working directly with producers, fair trade importers are able to pay more share of the profits to the farmers themselves. Open communication. Fair trade seeks to keep the information among farmers, buyers, and consumers as transparent as possible.

What is fair trade price?

A fair trade price is the minimum price paid for certain agricultural products imported from developing countries. Fair trade is a movement that believes it is unethical to pay producers in developing countries the market price if that price is too low to provide a sufficient quality of living. Instead, certain importers agree to pay producers in …

What are the opponents of fair trade?

Opponents of the fair trade system argue that establishing a price floor results in an oversupply that can lead to lower market prices for producers that cannot sell to fair trade buyers.

What are the limitations of fair trade?

Limitations to fair trade pricing include the high fees associated with being certified as “Fair Trade,” little incentive for producers to become more efficient, higher prices for consumers, and a lack of accountability placed on producers.

Why do producers need to give farmers information?

Producers look to give farmers as much information as possible about market conditions, technological advances, and best practices in order to build a sustainable long-term relationship. Environmental sustainability. Fair trade rules require farmers to only use sustainable growing methods that protect the environment.

How does fair trade benefit the community?

Fair trade benefits extend beyond individual basic needs and into the community with investments in clean water systems, hospitals, and schools. Environmental protection. Fair trade helps protect our natural resources such as water, soil, and vegetation through sustainable farming practices.

What are some examples of small producer standards?

For example, within the small producer standards, there is another set of standards for products like cocoa, cane sugar, cereals, coffee, fresh fruit, honey, nuts, tea, and so on. These specific product standards cover issues like product composition, production, contracts, pre-financing, and pricing.


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