Fair Trade Advantages to Employees

Topics: Fair trade, World Trade Organization, Better Pages: 4 (1135 words) Published: January 2, 2011

Have you ever thought about the coffee that you drink in the morning is produced in which conditions and life standards? Or, the chocolate you taste deliciously could have been a reason for its producers to work long hours under unhealthy conditions and live in poverty. Recently, it apparently seems that globalization and free trade system, which allows big firms and developed countries to gain huge profits, forces small farmers and producers to sell their outputs at very low- prices live in a cycle of poverty (Landry, 2003). In order to remove this injustice, the term “fair trade” occurs. According to Fair Trade Federation, which is one of the organizations of fair trade wholesalers, retailers and producers who have a unity to provide economically disadvantaged producers good producing opportunities and fair wages, fair trade means an equitable and fair partnership between marketers in developed countries and producers in developing countries and other parts of the world (Fair Trade Organization [FTO], 2002). In opportunities aspects that are provided to producers, fair trade provides small farmers to ameliorate their life standards, to use technical assistance for building infrastructure to improve production and to improve themselves by technical training and skill diversification for cooperate members and their families. One of the main advantages of fair trade for producers is that they are provided better life standards. Contrary to free trade, which allows big companies to wait 60-90 days before paying producers, fair trade guarantees the producers a long – term relationship with buyers and pre-payment so that producers to have sufficient funds for the continuity of production that ensures the economies stability and fair income distribution (Mclean, Halak, Jiang et al., 2005). In fair trade method, producers are guaranteed to have a long term relationship with a buyer. Within this reliability, it becomes...
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