Question

Explain what Fair Trade seeks to do. State two advantages produced by the Fair Trade model and two disadvantages.

Answer 1

Ans. Fairtrade is a simple way to make a difference to the lives of the people who grow the things we love. We do this by making trade fair. Fairtrade is unique. Empowerment is at the core of who we are. Our vision is a world in which all producers can enjoy secure and sustinable livelihoods, fulfill their potential and decide on their future. Our mission is to connect disadvantaged farmers and workers with consumers, promote fairer trading conditions and empower farmers and workers.

Fairtrade sets social, economic and environmental standards for both companies and the farmers and workers who grow the food we love. For farmers and workers the standards include protection of workers rights and the environment, for companies they include the payment of the Fairtrade Minimum Price and an additional fairtrade Premium to invest in businss or community projects of the community's choice. We independently check that our standards have been met by the farmer and workers and companies that are part of products supply chains. And inorder to reassure consumers that this has happened, we license the use of the FAIRTRDE Mark on produucts and packaging to signal this. Fairtrade works with companies' own schemes. This is to ensure we only workwith schemes that share our values. Fairtrade lobbies government. We mobilise our grassroot support from the British public to demand fairer treatment in trade deals towards farmers in developing countries who supply us with so much of our food. Fairtrade works directly with farmers and workers. It drives awarness with the public of the issue of unfair trade.

Advantges of fairtrades are: for producers Fairtrade is unique in offering important benefits, [1] stable prices that cover the costs of sustinable production and [2] market access that enables buyers to trade with producers who would otherwise be excluded from market and also certified producers must pay their workers a good wage and safe working condition. Disadvantages are: tariffs or the tax put on exports and imports is one of the disadvantage. Another one is producers have to pay for the costs of certification. Some small farmers and artisans can't afford it. Big companies can claim to be fairtraders even if only a fraction of their sales are from fair trade. This puts small importers who deal hundred percent in fair trade at a competitive disadvantage.