Fair trade

{{economics}}
[[File:Faitrade display.jpg|thumb|right|A Fair Trade display in Derbyshire, [[England]]]]
'''Fair trade''' is a set of commercial norms that aims to ensure that the producers of consumer products, especially those from the so-called "developing world,"  have decent working conditions and earn a reasonable income for their labour. Some fair trade organizations claim to be committed to environmental causes.  Of course, where billions of dollars are at stake, there is bound to be funny business.

Note that the term "Fairtrade" refers to {{wpl|Fair_Trade_Certified_Mark|Transfair}} and the FLO, while "fair trade" denotes the practice more generally.

==Certifying organizations==
There are several different fair trade groups:

*FLO International. This is composed of two main entities and regional sub-organizations: the FLO, which creates the standards, and FLOCERT audits and enforces standards. FLOCERT claims to have certified more than 3000 producers.<ref>[http://www.flocert.net/about-us/our-role-in-the-fairtrade-system/ ROOTS AND ROLE IN FAIRTRADE]</ref> FLO International is closely linked to Fair Trade USA and any group with the name TransFair or with Fairtrade as one word.
*The World Fair Trade Organization
*Institute for Marketecology (IMO)
*International Resources for Fairer Trade

Other groups which certify products or producers include Fair Trade Federation and UTZ Certified.

There are dozens of Fair Trade certification organizations, and even [[Walmart]] now offers fair trade products.<ref>[https://web.archive.org/web/20060905214836/https://www.fortwayne.com/mld/journalgazette/business/14845637.htm Even woomeisters are worried about fair trade] Wal-Mart's Attempt to Sell the 'Cheapest Fair Trade Coffee in America' Generates Skepticism, by Ylan Q. Mui, June 18, 2006, ''The Journal Gazette''</ref><ref group=note>The original article may be from The Washington Post</ref>

None of these certifiers are governmental or quasi-governmental regulatory authorities, national or international.

==Environmental standards==
Some of the environmental standards include:
*Having a specific individual on the farm responsible for maintaining the standards. This is used as an internal control.
*Being able to apply pesticides "…based on knowledge of pests and diseases."
*Proper handling of pesticides, since pesticides are most often sold in concentrate and than diluted on site in commercial farming. (Transfair does not require [[organic farming]] methods.) This also includes having the pesticides properly labeled, stored, and using the correct personal protective equipment  before and after pesticide application.
*Having equipment that can be used to respond to a pesticide spill.
*Using practices to reduce soil erosion.
*Finding sustainable [[water]] sources.
*Trying to improve soil fertility through methods such as crop rotation.
*Keeping a buffer zone between farming and "areas with high conservation value", as defined by the Forestry Stewardship Council, and includes areas inhabited by endangered species.
*Reducing and reporting [[greenhouse gas]] emissions from power consumption.
*[[DDT]] is not allowed.

Since the individual farms pay to meet these standards, it will often decrease their income from the fair trade [[coffee]]. In many cases using these standards may reduce yields. The requirements also appeal to larger, more skilled, producers than smaller impoverished producers.<ref>[http://www.huffpost.com/bruce-wydick/10-reasons-fair-trade-coffee-doesnt-work_b_5651663.html 10 Reasons Fair-Trade Coffee Doesn't Work] by Bruce Wydick, August 7, 2014, ''HuffPost''</ref>

==Labour standards==
*Fairtrade farmers cannot discriminate  "..on the basis of race, colour, gender, sexual orientation, disability, marital status, age, [[HIV/AIDS]] status, religion, political opinion, membership of unions or other workers’ representative bodies, national extraction or social origin in recruitment, promotion, access to training, remuneration, allocation of work, termination of employment, retirement or other activities."
*Farms are also barred from testing for HIV, pregnancy, or genetic disorders as a part of employment
*[[Corporal punishment]] and sexual harassment are prohibited.
*Forced labour, debt bondage and slave labour are prohibited.
*Farms cannot hire children under 15, but children under 15 are allowed to "help" work outside of regular school hours, and aren't involved in dangerous work.
*Collective bargaining is permitted.<ref>[http://www.fairtrade.net/fileadmin/user_upload/content/2009/standards/documents/2015-01-19_SPO_EN.pdf Fairtrade Standard for Small Producer Organizations]</ref>

==GMO==
{{see also|Genetically modified food}}
While non-[[organic]]ally farmed food may be certified as fair trade, most if not all fair trade certifiers will outright refuse to certify foods containing [[Genetically modified food|Genetically Modified Organisms (GMO)]].<ref>[https://www.fairtradecertified.org/frequently-asked-questions Fair Trade FAQ]</ref>  This arbitrary rule is a problem for those of us who want to approach environmental issues in a ''scientific'' manner but also are good-faith customers that want to support farmers as well.  GMOs are a relatively new and incredibly powerful tool in producing a crop that is disease resistant, requires less work, increased nutrition, environmentally friendlier, etc etc, you know, things that would ensure that farmers have a steady source of income. Genetically modified food's problems are usually not unique to them, such as the oft-cited seed patents. And unlike organic farming which has imposed unnecessarily restrictive measures on farming (such as banning synthetic pesticides and allowing "natural" but not necessarily safer pesticides, and using fertilizers such as manure that can facilitate ''E. coli'') that has led to outbreaks that can ''kill people'',<ref>[https://web.archive.org/web/20110608065919/https://www.reuters.com/article/2011/06/06/us-ecoli-beansprouts-idUSTRE7552N720110606 E. coli outbreak poses questions for organic farming, Reuters] by Kate Kelland, June 6, 2011, ''Reuters''</ref> not a single death has been linked to GMO food. This is not touching into the problem of what ''is'' a genetically modified food, as most of the food we eat have been already genetically modified from constant selection of the most desirable traits over history to the point they resemble nothing like their wild counterparts.

==Who gets the money==
It is unclear how many extra cents the farmers get for every dollar increase in price for a product. In the case of [[Whole Foods Market Inc]] fair trade [[coffee]], a consumer will pay an extra $4 per pound of coffee, but only 14 cents actually go to the farmer.<ref>[http://www.nytimes.com/2006/03/19/business/yourmoney/19fair.html?pagewanted=print&_r=0 Fair Prices for Farmers: Simple Idea, Complex Reality] by Jennifer Alsever, March 19, 2016, ''New York Times''</ref> So then who pockets the remaining $3.86? The fair-trade certifier takes a small cut, but most will go to intermediaries, such as roasting companies and distributors, and of course Whole 
Paycheck
 Foods themselves. In the end of the day, it's still the companies that make most of the money.

==See also==
{{fun}}
*[[Free trade]]
*[[Just price]]
==Notes==
<references group="note"/>

==References==
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[[Category:Economics]]
[[Category:GMO]]
[[Category:Environmentalism]]

Categories: Economics, GMO, Environmentalism