Essay On Fair Trade And Free Trade

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Fair trade and free trade are very similar terms and are often confused and misunderstood. They can often be heard as terms being used interchangeably in the context that is completely irrelevant to their definitions. Both freedom and fairness are always coveted by the masses, but these concepts address the same subject from very different perspectives. The definition of free trade and fair trade are consistent with most articles and websites such as “Investopedia” and “Fair Trade Federation”. Fair trade focuses on restricting producers and farmers in poor or developing countries by forcing them to adopt safe working conditions, provide service to planetary protection, and pay minimum wages. Free trade removes the boundaries between all …show more content…

Fair trade shares similar goals and descriptions among worldwide organizations and the leading group The World Fair Trade Organization or the WFTO established in 1989 formerly known as International Federation of Alternative Traders is no different. WFTO has prescribed ten principles that all fair trade Organisations must follow (Organization, W). The First principle “Creating Opportunities for Economically Disadvantaged Producers” means specifically supporting marginalized small producers and enabling economic independence and supporting the development of the community. The second of “Transparency and Accountability” promotes accountability and transparency in commercial transactions involving all stakeholders in decision making with strong communication channels throughout the whole supply chain. “Fair Trading Practices,” the third principle, prioritizes organization of trades with concern for the economic, social, and environmental well being of marginalized small producers ensuring that profits would not be made at their expense. The fourth principle of “payment of a fair price” establishes prices that are mutually agreed and fair for the producer and the market. This also strives for socially accepted payments to workers in the local context while also having equal pay for equal work by women and men. Principle five says

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