There used to be a time when there came reported issues with injustice in trade and there felt a need to develop a strategy that made us trade fairly and as the name suggests, fair trade was an attempt in fulfilling this step with a motive to give fair trading opportunities to the traders globally. This method might take you some time to understand it fully and thus we are here to explain it for you.
What is Fair Trade
Need of The Fair Trading System:-
There are millions of workers related to trading that keep on living in poverty despite their hard work and skills. While the top priority people keep on filling their pockets, these skilled people who actually bring about the work to happen, still live in poverty and thus there felt a need to introduce something that could disclose this gap and provide opportunities, according to the skills of people making it a fair trade and thus “Fair Trade” system was introduced.
Fair trading system was based on the partnership making strategy that means that everybody included in it will get benefits including the farmers, workers and every skilled person that is hired so as to make the purpose get fulfilled. This helped to reduce the gap between the top priority investors as well as middlemen and farmers.
Principles of Fair Trade:-
The approach of fair trade system followed certain principles that include fair payment of prices enough for farmers as well as workers. The trading earlier used to be one sided and thus this made farmers as well as middlemen get an advantage with introduction of fair trade.
The payments used to be made advance and associations were made to look in the matter if there were any cases related with trading that looked for the benefits and rights of both the farmers as well as the skilled person involved as well. This movement focused on the trading of commodities, or products which are typically exported from developing countries to the developed ones , but are also consumed in the domestic markets within a country.
Fair Trade as A Revolution:-
The strategy that fair trade system was introduced with made it take a form of a social movement that helped developing countries achieve better conditions of trading and helped to promote their level of sustainability as well. It focused almost all the people involved in trading and hence proved to be a step in upliftment of the people related with trading.
Products Included In the Fair trade Movement:-
Fair trade movement was associated with almost every commodity that was exported from developing nations to the developed nations including coffee, cocoa, sugar, tea, fresh fruit, chocolate, bananas, honey, cotton, wine, hand crafts, flowers and gold etc. There were a major number of people involved in the process of trading these products including the people associated with the loading and unloading of commodities, the farmers, the middle men and the others skilled practitioners as well. After this movement was launched, It bought about a shift in the world of trading.