Fair trade movement Essay

It emphasizes particular products which are mainly exported from developing countries to the developed countries and are also consumed domestically. Most notable products are cocoa, chocolate, fresh fruit, handicrafts, coffee, sugar, flowers, and wine. It aims to enhance heightened equality in world trading transactions through respect, dialogue, and transparency (Low, will and Eileen, p. g319). It advocates for sustainable development by providing improved trading terms and ensuring the rights of, marginalized workers and producers in the developing countries. In 1958 the first official fair trade shop in the US was opened; where good from other organizations and from SERRV were sold (Bondarenko, p. Fairtrade in Europe began in the 1950s when Oxford international commenced selling crafts and arts created by Chinese refugees in its shops in the UK (Low et al p.

g322). In1964 oxford international started selling Christmas cards and handicrafts made in developing countries. During this time, there were parallel developments in the Netherlands which were led by a charitable Roman Catholic organization, Wereldhandel, which was later renamed Fair Trade Original (Kocken, pg. The Max Havelaar label, for instance, was created in the Netherlands and was named after a man who fought the government overexploitation of domestic coffee farmers by the countries colonialists in the 19th century (Kocken, p. Like organizations were established in other North America and other European countries, which led to the creation of an international Fairtrade entities (FLO) in 1997 (Low, will and Eileen, p. This labeling created consumer awareness and enabled such produces to be sold beside nonfair trade collegues in large chain supermarkets which expanded their accessibility from fair trade shops to large consumer markets.

It is 1989 that the World Fair Trade Organization was formed and brought together 38 fair trade organizations. In 1990 the European Fair Trade Association was legally created by 11 fair trade import entities in nine different European countries (Bondarenko, p. The office is supported, funded and managed by the fair trade movement. An ever-increasing number of developed countries citizens care more and more about contributing towards sustainable social and economic development in developing countries; through their buying preferences, specifically purchasing fair trade products. This consumer concern for fair trade has been raised by local authorities, civil society and as echoed by the European Union parliament. Retailers play a role in fair trade advocacy through their commitment to fair trade labeled goods which is a sign of commitment to justice and fairness in their trading relationships.

They have searched to de-commodify their mainstream lines with ‘local' branding, organic and fair trade which offers both profit and reputational benefits. Cooperatives that utilize their social premium for public goods regularly finance educational scholarships. For instance, Costa Rican coffee cooperative has sponsored hundreds of youths at school and university by financing of scholarships from premiums. Challenges that the movement is facing Despite the Fairtrade label being around for some decades, it has not translated into sustainable livelihoods for smallholder farmers in spite of having made some progress in enhancing livelihoods. This is because Fairtrade has focused its attention on its retail partners who have benefited more from this relationship and has received crucial part of its resources from the premium provided by Fairtrade premium which is charged on retail products that bear its label.

According to (Fridell, pg. After some time of legal challenges and discussions, the province of Groningen triumphed in a well-publicized judgment. Max Havelaar foundation director called it a landmark event. The case promoted Fair Trade movement as it provided governance institutions that bear fair trade criteria so that meaningful and substantial contribution is made in the fight against poverty through a cup of coffee. Impact of the movement Fairtrade has had a significant effect on the world trade. For instance, in 2010 the retail sales value of Fairtrade marked commodities was GBP1. Fairtrade ability to strengthen the organizational capacities of producer groups is well recognized. Fairtrade improves producer organizations access to the international market; it also assists them to provide their members to enhance technical assistance. Through fair trade premium, the production organizations can provide for social services that enable to improve the health and education status of producers, their families and the community (Frye, pg.

Producers can offer financial services to their members. Conclusion Since its inception world fair trade movement have impacted the lives of many farmers and workers in less developed and developing countries; this is by giving them access to North American and European markets. Fair trade coffee: The prospects and pitfalls of market-driven social justice. Vol. University of Toronto Press, 2007. Frye, Joshua J. Re-conceptualizing the Global Fair Trade Movement. David Simpson, and Walter E. Block. Fair trade: Its real impact on the working poor. The Review of Social and Economic Issues 1. Low, Will, and Eileen Davenport.