Meaning Of Fair Trade Agreement

The participation of ecclesiastical organizations was and is an integral part of the fair trade movement: consumers of fair trade products generally make a deliberate choice to purchase fair trade products on the basis of attitude, moral norms, perceived behavioural control and social norms. It is useful to include the measurement of moral standards to improve the predictive power of intentions to buy fair trade through basic predictors, such as attitude and perceived behavioral control. [67] Consumers are often unwilling to pay the extra price of fair trade cocoa because they do not know what fair trade is. Activist groups are essential to inform consumers of the unethical aspects of illicit trade and to encourage demand for fair trade raw materials. Activism and ethical consumption not only promote fair trade, but also act against powerful groups like Mars, Incorporated, which refuse to recognize the use of forced labour in harvesting their cocoa. [100] The fair trade and non-fair coffee marketing system is the same in consumer and developing countries and uses mainly the same import, packaging, distribution and distribution companies as those used worldwide. Some independent brands operate a ”virtual business” that pays importers, packers and distributors as well as advertising agencies for cost reasons to manipulate their brand. [30] In the producing country, fair trade is marketed only by fair trade cooperatives, while other coffees are marketed by fair trade cooperatives (as non-certified coffee), other cooperatives and ordinary traders. [22] [23] [24] [27] [25] Critics argue that fair trade harms all farmers of the unfair trade. Fair Trade says its farmers receive higher prices and receive special advice on increasing yields and quality.

Economists[29][Source self-published] [167][168][169][169][170] indicate that fair trade farmers, if this is the trap, will increase production. Because demand for coffee is highly elastic, a small increase in supply means a sharp drop in market prices, which means that perhaps one million fair trade farmers will receive a higher price and another 24 million will receive a much lower price. Critics cite the example that, in the 1980s, Vietnamese farmers were paid above the world market price, planted a lot of coffee, and then flooded the world market in the 1990s. The fair minimum price of trade means that when the world market price collapses, it is the unskilled producers, especially the poorest, who have to slaughter their coffee trees. This argument is supported by traditional economists, and not just by free distributors. [Citation required] Most Fair Trade import organizations are members or certified by several national or international associations. These associations coordinate, encourage and facilitate the work of fair trade organizations. In 2004, the European Union adopted the Agricultural Commodity Chains, Dependence and Poverty – A proposal for a EU Action Plan, referring specifically to the Fair Trade movement, which ”highlighted the trend towards more socio-economically responsible trade”. (COM (2004) 0089). The European Commission`s communication entitled ”Policy Coherence in Development – Accelerating the Achievement of the Millennium Development Goals” (COM (2005) 134 final, 12 April 2005) refers to fair trade in 2005 as an ”instrument to fight poverty and sustainable development”. [144] Consumers generally have a positive attitude towards ethically produced products. These products may contain promises of fair working conditions, environmental protection and the protection of human rights.

All fair trade products must meet these standards. Despite a positive attitude towards products