Fair Trade
Introduction
Fair trade is an organised social movement which is based on partnership between producers and consumers, with the aim of providing secure and sustainable livelihoods to suppliers, as well as fulfilling their potential. As an alternative approach to free trade which focus on establishing an unrestricted trading relationship, the core goal of fair trade is to aid marginalised producers, promote trading conditions and sustainability (Fairtrade International, 2011).
The last decade has witnessed a dramatic growth of fair trade. As this considerable trend has accelerated, there has been a corresponding upswing in the debate over international trading regime, with advocate of fair trade dynamically questioning the integrity of the predominant economic orthodoxy. Although proponents declare that fair trade brings more benefits to suppliers than free trade, it is still debatable whether the benefits claimed by advocates really accrue to the suppliers. The increasing criticism of fair trade in recent years shows that fair trade is not entirely fair. It seems that only free trade without the imposition constraints can bring long-term prosperity.
The aim of this essay is to show the weaknesses of fair trade, emphasizing the positive effects of free trade and discussing the extent to which trading regime brings more benefits to suppliers. Questioning the benefits of fair trade
Proponents claim that the impacts of fair trade in supplier countries are deep and broad. By producing a fixed guaranteed minimum price, the marginalised producers in developing countries are able to cover their average costs of sustainable production. It also provides a fair trade premium which goes into a communal fund for suppliers to finance wider community projects such as roads, schools, hospitals and other social, environmental services (Fairtrade International, 2011). These benefits, however, may not be as great as the fair trade advocators indicate.
Convincing arguments can be
Fair trade is an organised social movement which is based on partnership between producers and consumers, with the aim of providing secure and sustainable livelihoods to suppliers, as well as fulfilling their potential. As an alternative approach to free trade which focus on establishing an unrestricted trading relationship, the core goal of fair trade is to aid marginalised producers, promote trading conditions and sustainability (Fairtrade International, 2011).
The last decade has witnessed a dramatic growth of fair trade. As this considerable trend has accelerated, there has been a corresponding upswing in the debate over international trading regime, with advocate of fair trade dynamically questioning the integrity of the predominant economic orthodoxy. Although proponents declare that fair trade brings more benefits to suppliers than free trade, it is still debatable whether the benefits claimed by advocates really accrue to the suppliers. The increasing criticism of fair trade in recent years shows that fair trade is not entirely fair. It seems that only free trade without the imposition constraints can bring long-term prosperity.
The aim of this essay is to show the weaknesses of fair trade, emphasizing the positive effects of free trade and discussing the extent to which trading regime brings more benefits to suppliers. Questioning the benefits of fair trade
Proponents claim that the impacts of fair trade in supplier countries are deep and broad. By producing a fixed guaranteed minimum price, the marginalised producers in developing countries are able to cover their average costs of sustainable production. It also provides a fair trade premium which goes into a communal fund for suppliers to finance wider community projects such as roads, schools, hospitals and other social, environmental services (Fairtrade International, 2011). These benefits, however, may not be as great as the fair trade advocators indicate.
Convincing arguments can be
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