Fair Trade, is an alternative system of trade which counteracts this system of international free trade, corporate control, and global policies by giving the farmers and workers a living wage for their work, which can sustain them and also create opportunities for social and economic development. We examine in some detail the system of fair trade, the different players involved, the different agreements that have to be followed to qualify a product as fair trade and some issues with fair trade.
Do You Need That Straw? What is Fair Trade? We live in a world of gross social and economic inequalities which is leaving millions of people without the basic necessities of food, water, housing, education, health-care etc. Millions of small farmers are being dramatically affected by the globalization, international trade policies, third world debt and are losing their farms, livelihoods and are unable to feed their families or provide for other basic necessities of life.
Similarly, landless workers are seeing fair trade products certified by green working conditions, low pay and unsafe working environments as developing countries compete to attract foreign investment by offering the cheapest labor.
Fair Trade Participants different groups involved Fair Trade involve for the most 3 different groups of people and certain agreements between them.
Producers "Producers" refers to the farmers, artisans, workers, cooperatives who are producing the products - coffee, tea, cocoa, honey, handicrafts etc. The producers have to follow certain agreements to qualify the products they produce as fair trade. Importers Importers refers to the people who import the fair trade products produced by the producers fair trade products certified by green their respective countries for further processing and sale either by themselves or by other processors and retailers.
So, for example, an importer may just import fair trade "green coffee", which would, in turn, would be sold to a fair trade roaster who eventually sells it to a retailer. Similarly, there are other organizations in other countries Japan, Germany etc.
There is also Fair Trade Federation, an association of importers, retailers, and producers who commit themselves to certain fair trade guidelines, but these guidelines are neither enforced or the products certified to meet their guidelines.
Fair Trade Agreements Importers and producers both have to follow certain standards to be certified as fair trade. Importer Agreements Pay a price to producers that covers the costs of sustainable production and living - also referred to as the 'living wage' in the local context. Partially pay in advance, when producers ask for it Sign contracts that allow for producers to do long-term planning and follow sustainable production practices, so that they know in advance that their produce will be bought by the importer.
To be certified as fair trade, producer organizations cooperatives, associations, companies relying on hired labor have to show that: Fair Trade revenue fair trade products certified by green promote social and economic development of its members or workers For cooperatives, the majority of members are small producers and produce the products themselves and that the cooperative has democratic structure and is controlled by its members There is no discrimination based on sex, gender, religion, color, political views, etc.
Producers or the company has fair trade products certified by green ability, logistics, technical means to bring the products to market. They are protecting the environment and make environmental protection part of their production management - minimize the use of fertilizers, pesticides and move towards fair trade products certified by green fertilizers.
Certain pesticides are not allowed to be used at fair trade products certified by green. There is no forced or child labor. Safe working conditions - workplaces, machinery, and equipment are safe and without risk to health. Issues with Fair Trade Like any system, there are some criticisms and issues with fair trade. Producer certification fees Producers co-ops, associations, unions, etc have to pay a Euro fee for initial fair trade certification and then a Euro fee, every year to keep certification.
Given that most fair trade products certified by green in the developing world are small and poor and often even do not have enough money to feed themselves properly, the fees are extremely excessive and takes hard earned, much needed money away from the producers to pay for certification. The current system also fair trade products certified by green small family farmers and producers who cannot form cooperatives or associations for various reasons and hence cannot be certified as Fair Trade.
As a result, many small importers have pulled out of the TransFair certification process and chosen to make all their contracts, purchases totally public information. One Fair Trade Price Fits All FLO mandated fair trade pricing does not take into account, for the most part, the wage and living disparities which may exist in different parts of the world, or even in countries which are in the same geographical region.
The fair trade pricing set by FLO therefore could be too low for certain producers and farmers and not enough to meet their basic needs. Lack of Transparency Lack of transparency applies more to goods which are being sold as "fairly traded", but where the producers have not been certified as "fair trade" producers. Handicrafts, clothing, paper and many other items are currently being sold as "fair trade", but the businesses importing and selling them have almost no transparency as to what they are paying to the producer for a particular item.
For fair trade certified products, the prices are set by FLO, but for others goods, there is no set price and hence it is easy for businesses to claim that they are "fair trade".
Bitshares - Stan sieci na dzien 27 Grudnia в Steemkr. Just want to point out to that this is not the Canadian Virtex cavirtex. On trading indicators dont work popular demand, we have developed an Amibroker. Binance Access Restored, as Exchange Claims DDoS Attack on Cloud Provider. So, as with everything cryptocurrency-related: do some research and caveat emptor.