Criticism Of Fair Trade In The United States

Possibilities of economic and political choices available for citizens of any nation-state, defined by the resources of this state and its relations with other national States. Singular citizens cannot be active at the international arena and thus they are dependent on the choices it will be made by the state. Therefore, the state acts as management of material resources of the country, trying to bring prosperity to its citizens. The government seeks to raise living standards and the level of production through thick and thin. Free economic relations contribute to the welfare cooperating parties, producing what economists call "Income from trading". The basic principle of international economic relations is freedom of trade. The principle

Advocates of fair trade say that the commodity price does not guarantee a living wage for many producers in developing countries, forcing them to borrow from the extremely unfavorable conditions. Supporters of fair trade also believe that market prices do not reflect the true cost of production, which should also include environmental and social components of cost.

Fair trade is intended to refer to these challenges by establishing an alternative trading system "ethical" products, contributing to economic development and offer the best trading conditions for producers and workers in developing countries. Fair trade is often positioned as an alternative to or replacement of free trade.

The main objective of fair trade - to the producer confidence that he will receive for their goods the price commensurate with the cost of production of the product, ie It covers the cost of the manufacturing process, salaries and fees for use of resources. This goal is usually achieved through a voluntary agreement between the manufacturer and the consumer is willing to pay "fair price" for a particular commodity. For optimum cost structure of products minimize the number of intermediaries between the farmer and the

The minimum price, which establishes the organization Fairtrade product is a kind of a safety strap, which helps to protect the interests of small producers during strong fluctuations of the market, when the price of a particular commodity falls low enough. First of all, this applies to small producers in developing countries of Asia, Africa and Latin America. The main problem is that the prices paid for the goods that they produce (eg coffee and cocoa), has long been established by large international companies - of course, at the lowest level. The farmers have no choice but to accept these prices, otherwise they simply can not sell their products, and it is natural that in such a situation they do not have opportunities to improve product quality and working conditions. Moreover, in developed countries the right of workers and employers are guaranteed by law, there is a system of social insurance and labor laws, while in many countries of Africa, Asia and Latin America, these processes are often rudimentary. Thus, the implementation of the principle of Fairtrade for many, especially smaller, manufacturers becomes the only way to get a fair payment for their work, and hence be able to feed their families, send their children to school, to take advantage of, if necessary, medical care, etc.

Sales of Fair Trade really increased only after the opportunity of certification of these products. Indeed,