What Is The Fair Trade Agreement

Posted by admin @ 2:20 pm on April 15, 2021

Efforts have been made to introduce fair trade practices in the luxury goods industry, particularly for gold and diamonds. In the early 1980s, alternative trade organizations faced great challenges: the novelty of some fair trade products began to wear out, demand reached a plateau and some trades began to appear “tired and old-fashioned” in the market. The decline of the craft market segments has forced fair trade advocates to rethink their business model and objectives. In addition, many fair trade advocates have expressed concern about the current impact of structural reforms in the agricultural sector on small farmers and the decline in commodity prices. Many felt that it was the responsibility of the movement to tackle the problem and find remedies that can be used in the persistent crisis of the industry. In recent years, parts of the trade law movement have also criticized fair trade for allegedly focusing too much on small groups of producers and at the same time not committing to immediate trade policy changes that would have a greater impact on the lives of disadvantaged producers. The author and correspondent of RFI, Jean-Pierre Boris, defended this view in his book Unfair Trade, published in 2005. [181] Some producers also benefit from the indirect benefits of fair trade practices. Fair trade cooperatives create a space for solidarity and foster entrepreneurship among producers. If farmers feel they have control over their own lives within their co-op`s network, it can be very powerful.

A profitable activity allows producers to think about their future instead of wondering how they will survive in poverty. [40] Farmers` organizations that use their social premiums for public goods often fund scholarships. For example, the Costa Rican coffee cooperative CoocafĂ© has helped hundreds of children and adolescents at school and university by funding scholarships for its Fair Trade Social Premium. In the field of education, the social premium can also be used for the construction and equipment of schools. [42] An alternative trade organization (ATO) is generally a non-governmental organization (NGO) or mission-oriented organization, inspired by the fair trade movement, which aims to “help alleviate poverty in developing regions of the world by creating a trading system that allows marginalized producers in developing regions to access developed markets.” [80] Alternative trade organizations are at the heart of their mission and activities by using it as a development tool to support disadvantaged producers and reduce poverty and combine their marketing with awareness and campaigns. Coffee is the most established good in fair trade.