What Are The Disadvantages Of Fair Trade
So is trade actually as ‘fair’ as we think it is or are developing/underdeveloped countries being exploited by developed nations?
The issue of unfair trade:
Consumer related:
• Unfair pricing
• Adulteration of products – Generally common in food items, having a hazardous effect on consumers’ health.
• False claims of guarantee or warrantee
• Product risks – selling expired or damaged products
Worker related:
• Extremely low wages below the minimum wage – they cannot support themselves or their family with their low salary.
• Unhygienic work environment
• Long work hours
• Examples: Clothing factories in Bangladesh employ around two million exploited workers and most of them are young girls aged 14 to 29. Moreover, they are forced to endure
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They also set minimum standards for the pay and conditions of workers. About 5 million people benefit from Fair Trade in 58 countries.
Fair trade products are becoming more widespread and include tea, coffee, sugar, chocolate and cotton.
How does fair trade make a difference?
The Fair Trade Organisation ensures that there are various benefits for the world due to the implementation of fair trade.
Economic Advantages:
• Buyers must pay a standard Fair Trade minimum price that is required to cover the costs of sustainable production (manufacturing processes that are non-polluting, and work towards the conservation of energy and resources).
• Gives local production sectors an increased access to export markets.
Social Advantages:
• Prevents discrimination of social or ethical groups.
• Social rights are implemented and work conditions are improved. Health of the employees is also taken into consideration.
• Strictly prevents forced or child labour.
• Gives freedom of expression and association to workers.
• Training opportunities for workers helps improve their skills and levels of motivation to increase the quality of
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• Proper treatment and disposal of waste is carried out.
• Frequent checks to ensure favourable soil conditions and purity of water.
• Regular assessments of the industry’s environmental impact and development of plans to lessen the negative impacts.
Is fair trade implemented properly?
Although Fair Trade certified products seem to be the solution to the “poor becoming poorer and the rich are becoming richer” issue, these products aren’t always completely “fair”.
A t-shirt may be made out of Fair Trade cotton but the manufacturing may be done through child labour or in a factory where workers aren’t paid what they deserve.
GLOBAL LEVEL:
Previously, alternate trade ensured ethical values during trade. However now it is being mixed with commercial trade leading to the poor producers not benefitting as much as they should.
Many multi-national companies advocate that they promote fair trade and that their products are Fair Trade certified. Nevertheless, out of the material used to manufacture their products only some percentage may be Fair Trade certified. We can never determine whether a company uses 0.1 % or 100 % Fair Trade certified
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