Fair_Trade

Fair Trade There have been many advances within the global market during the twentieth century. The creation and development of Fair Trade is one of the advancements that have come to the forefront. This approach, through social movement, was developed to create a fair ‘playing field’ for producers. Fair Trade aims to promote fair prices and more importantly, a safe and healthy working environment with proper standards. These goals are introduced to a variety of producers and deal with numerous countries and goods. Some of the main goods that are dealt with are coffee, sugar, tea and bananas. Since many of the geographical areas that produce these goods consist of developing countries, many of the companies are marginalized. Fair trade supports these producers and helps to make them secure and successful. In this paper I will briefly introduce some history and initiatives of Fair Trade and also look at the political side of the social movement. I will also outline and write upon the key principles and networks of Fair Trade. Fair Trade aims to empower a variety of countries and producers. In order to do so they must be very adaptive with their attempts to better the area of international trade. In order to work within a variety of geographical areas, religions and organization, Fair Trade works along side other organizations that are also for a good cause. Examples of these organizations include Amnesty and Oxfam International, as well as many international religious relief services. These organizations give Fair Trade an outline and backing for the most important part of their social movement, working environment and proper working standards. The partner organizations also allow Fair Trade to understand the ways of international living (religion for example) and how to approach the area of international trade within foreign countries. The area of foreign rights and development is certainly the most important area of Fair Trade. However, the area of domestic purchasing must also be developed and understood. A relevant viewpoint for the development of domestic purchase can be discussed under student Fair Trade organizations such as CSFTN (Canadian Student Fair Trade Network) and USFT (United Students for Fair Trade). These students (often university based) aim to educate and shift individual, company, and government purchasing towards the human-right respecting and sustainable ways of Fair Trade. In order to do so, student organizations are expanding and educating on local, regional, provincial and national levels. This education is done through events and campaigns, as well as explanations on the history and facts on Fair Trade. The education also pushes for recognition of labeling or proper Fairtrade certifications. These certifications have assisted Fair Trade, along with student organizations, in the increase of Fair Trade sales. Fairtrade certification was created to allow individuals, companies and the government to identify products that have been fairly produced and sold. The sale of Fair Trade products rapidly increased after the initiative of the first Fairtrade certification. In order to allow people to identify goods involved in the Fair Trade market, a definite label needed to be created. This was titled the ‘labeling initiative’ and led to the creation of the now successful FLO or Fair Trade Labelling Organization. To reiterate, the well being, work environment and fair price aims of Fair Trade are critical in importance; however, the domestic aims such as purchase recognition are very important to successful Fair Trade. Fair Trade is a political area that continues to be applied to countries around the world. It is certainly an area that has developed since the early twentieth century (in majority) and is continuing to do so today. The European Union, and many other overseas countries involved in the EU, play a significant role in the universal development. In the mid nineties, memo’s for alternate trade and marketing movement became a focus for the EU and its European Parliament. Year by year, the adoption of a Fair Trade movement has became more influential in Europe although not every EU country has finalized proper Fair Trade agreements. Countries such as Italy, France and Belgium continue to properly document the importance of Fair Trade within their country, and more importantly, continue to strive towards the actions needed to create proper procedure within the global trading market. Many countries have publicly recognized the importance of Fair Trade, but lack the goods and labels necessary to make the idea of trading fairly, successful. In order for Fair Trade to be successful, it must rely on certain principle ideas and ways of development. One of these principles is the ability to introduce market availability to the marginalized producers. Since many producers are not included in the mainstream market, it is key for Fair Trade to gain them this access in order to properly promote and sell their products. Another reason that mainstream market availability is important is because of profit; the less steps and partners involved in sale, the higher the profit. Trading relationships are another key area of Fair Trade. Proper relationships within trade consist of thorough assessment. With proper assessment, trading partners are able to sustain a proper livelihood, an improved future, and most importantly, successful long term trading relationships with acceptable working conditions as an essential area. The final key Fair Trade principle is development. The area of development is an on going area that requires continual effort. Fair Trade reaches this goal by keeping the producer up to date on trends, changes and market conditions. Development is acquired through advertisement for consumer awareness. Connecting a consumer with a producer is not the only goal of Fair Trade, for connecting an educated consumer with a fair producer will increase sales in the long term as well as the short term. It is the advocacy for understanding that will lead to main goal of reasonable global trade. At the end of the twentieth century, the structure of Fair Trade was condensed into four areas that can be defined under the pneumonic device FINE. These four areas are the main areas of importance and areas that make Fair Trade a success. The ‘F’ stands for the Fair Trade Labeling Organization (or FLO) and works with several production networks and labeling initiatives with hopes of gaining consumers through the proper advertisement of products. The ‘I’ stands for the International Fair Trade Association and has a mission for justice within the trade world and aims to improve the livelihood of producers by linking them to proper Fair Trade organizations. The IFTA no only speaks out against unreasonable trade, but takes actions and helps to empower regions with marginalized producers. The ‘N’ in FINE stands for the Network of European Worldshops (or NEWS). NEWS represents thousands of shops in several countries around the world and promotes these shops with campaigns and events on levels from regional to national. Since worldshops are often non profit and specialize in the selling of Fair Trades goods and products, it is important that they are recognized and NEWS takes on this important job which benefits not only the area of worldshops, but Fair Trade as a whole. The European Fair Trade Association represents the ‘E’ in FINE and supports the nine European countries that are included in it. The EFTA works with groups such as FLO and IFTA to properly label their goods and educate on the important areas of Fair Trade. The EFTA also tackles trade justice issues such as minorities and women’s rights. These four ‘FINE’ areas are crucial in the success and development of the Fair Trading industry. In Conclusion, the area of Fair Trade is a social movement with goals of moving developing countries into the realm of developed countries. In order for this to occur, Fair Trade works to increase the wages of foreign producers, create safe and secure working environments and connect producers with proper market access in order to sell their goods. Fair Trade group also work with organizations that attempt to better human rights and demand justice for those of which are violated. Examples of these groups are Amnesty International and Oxfam. There are also many student led movements in support of Fair Trade and its development. These youth groups are so important because they pave the way for future trading rules and the decisions of consumers. This essay also touched on the importance of the European Union. One of the big reasons for this is labour mobility. A higher amount of labour mobility allows for more efficient distribution or resources, and a very small percentage of people live in areas of Europe for employment. The same goes for capital mobility, which does not exist in Fair Trade, for there is not a ‘free flow’ of money in and out of many countries involved. There are also principles that are crucial to the European Union and Fair Trade. The fair Trade principles consist of introduction to market access and continual development. This includes keeping the producers up to speed on trends and market necessities. To continue, and along the same lines as principles, Fair Trade is made up of four very important organizations in particular. The Fairtrade Labeling Organization, International Fair Trade Association, Network of European Worldshops and European Fair Trade Association have a great impact on the success and development of fair-trading. To conclude expansively, the ability of many countries and organizations to develop successful trading relationships on a global scale creates a positive step towards every country developing reasonable relationships with regards to global peace. References Canada, Human Resources and Social Development (2007). Retrieved September 28 2008 from http://www.hrsdc.gc.ca/en/workplaceskills/labour_mobility/index.shtml#what Charlton, Andrew & Stiglitz, E Joseph (2005). Fair Trade For All; How Trade Can promote development. Oxford University Press. Douglas, Murray & Raynolds, Luara & Wilkonson, John (2007). Fair Trade; The challenges of transforming globalization. Routledge Press. The Fairtrade Foundation (2008). Retrieved September 28 2008 from http://www.fairtrade.org.uk