How would developing as well as developed countries' pursuit of self interests violate fair trade?

Question

It would be great if you could provide me with some info on the cons of fair trade, thanks!

Answer 1

I´m not sure, whether  this is what do you want?, Ok:



Look in  this definition:

"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."

Is clear, according to the concept,  what is the reach of the fair trade, particularly into  the third world countries.

The fair trade certification, is required, of course, it means a lot compromises.

This explanation, help us to understand it:

"Fair Trade Certification empowers farmers and farm workers to lift themselves out of poverty by investing in their farms and communities, protecting the environment, and developing the business skills necessary to compete in the global marketplace. "

The Fair Trade principles include:

_"Fair price: Democratically organized farmer groups receive a guaranteed minimum floor price and an additional premium for certified organic products. Farmer organizations are also eligible for pre-harvest credit."

_"Fair labor conditions: Workers on Fair Trade farms enjoy freedom of association, safe working conditions, and living wages. Forced child labor is strictly prohibited. "

_"Direct trade: With Fair Trade, importers purchase from Fair Trade producer groups as directly as possible, eliminating unnecessary middlemen and empowering farmers to develop the business capacity necessary to compete in the global marketplace. "

_"Democratic and transparent organizations: Fair Trade farmers and farm workers decide democratically how to invest Fair Trade revenues. "

_"Community development: Fair Trade farmers and farm workers invest Fair Trade premiums in social and business development projects like scholarship programs, quality improvement trainings, and organic certification. "

_"Environmental sustainability: Harmful agrochemicals and GMOs are strictly prohibited in favor of environmentally sustainable farming methods that protect farmers’ health and preserve valuable ecosystems for future generations. "

When the  market rate, exceed the minimum fair trade, price a premium needs to be paid. The main drawback of fair trade, is the high price of the product, because such a certification involves compliance with the principles mentioned above,  translated economically, raises producer prices of these consumer goods.

Any violation of the fair trade principles, maybe implicates, to  take out  or invalid, the international certification, which by the magnitude of it, farmers can lose, distribution facilities and selling these products to the high price levels, which are paid.

See also these links:

http://www.equalexchange.com/fair-trade

http://www.transfairusa.org/content/abou...

http://en.wikipedia.org/wiki/Fair_trade

http://www.ifat.org/index.php?option=com...