Fair Trade: Influences and Effects on Society

Fair trade, refers to an existent social movement, which being organized, aims at aiding producers (farmers, industrialists, entrepreneurs etc), especially those from the developing world, formulate better trading conditions, as well as requisites towards the promotion of economic sustainability. As such, it advocates for better/ higher price payment for exports, in addition to promoting enhanced environmental and socio-economic standards. Pertinently so, it espouses a trading partnership that is rooted in not only respect and dialogue, but also enhanced transparency, as well as greater equity in reference to international trade and commerce. By aiming to achieve sustainable development, it offers better trading conditions to marginalized workers and producers, as well as securing their greater rights, especially towards achieving greater market access.

As a result, various entities such as Fair Trade Organizations have embarked on actively engaging in various ways/ avenues/ arenas, towards providing support for existent producers. Through raising awareness, as well as championing for greater change in the contemporary international trade and commerce arena, they seek better rules as well as practical platforms towards promoting equity in global trade and commerce. However, due to the capitalist nature of contemporary society, further impacted by the globalization process, it is the developed world (industrialized nations), which gains more when it comes to the global arena of trade and commerce. Propelled by the Industrial Revolution of the 19th Century, these nations gained tremendously as a result of mass production of goods, products and services, which required market arenas (DeCarlo, 2011).

Towards this end, the WTO World Trade Organization was formulated, aiming at opening up various untapped market arenas, especially in the developing and less-developed world. This necessitated a two-way procedure, where there was a need for greater access to raw materials, mineral resources, agricultural land produce as well as labor (workforce), vis-?-vis enhanced market arenas for their products and processed goods. Through this market dominance, such nations (the Western Powers) were able to gain advantages, abate unjustly, towards promoting their own industries overall progression, often at the expense of the rest of global arena. Capitalism, as a concept rooted in free trade as well as greater access to markets, hence portended to these industrial nations, gained advantages as a result of existent economy of scale advantages.

These advantages enabled their industries flourish, with expansion occurring at a greater level, especially in an untapped market arenas, both in the sale of goods and services as well as the quest for raw materials, resource exploitation and labor organization. This often resulted in accumulated wealth being channeled to a few entities and individuals, at the expense of the great masses and thus provided a catalyst to existent social problems and ills. These negative consequences hence are traceable to the expanding gap between the haves and the have-nots; between the industrialized nations and the rest of the global society. It is these negative effects that Fair Trade seeks to reverse, mitigate and eventually eradicate through various procedural measures, policies, regulations and trade (work) ethics or conduct (Litvinoff & Madeley, 2007).

Consequently, fair trade entails the production and trading of various products according to the aforementioned principle of equity, with verification being conducted by independent and credible assurance systems. Fair trade hence relates to trade that is in conformity with existent fair-trade agreements, as well as the aforementioned social movement whose prime goal is to advance the rights of not only producers, but also ethical treatment of famers and workers, towards alleviating poverty, as well as promoting environmentally sustainable best-practices. Thus, by conducting business through greater observance of existent fair-trade agreements, the global arena is enabled to grow and develop equitably, pertaining especially to the trade and commerce arena (Linton, 2012).

Various entities hence exist towards promoting greater global fair trade being recognized as fair-trade certifiers. These include Fair-trade International (FI), World Fair Trade Organization (WFTO), Fair-Trade Labeling Organization International (FLOI), the Network of European World shops and the European Fair Trade Association (EFTA). All the above enhance fair trade, with this pertaining to trading partnerships that are based on transparency, dialogue and respect, and as such, further seek greater equity in contemporary international trade. By engaging in the above, the aforementioned entities are able to advance sustainable development. This is enabled through the offer of better trading conditions to marginalized workers and producers, as well as securing their greater rights of conduct in global trade and commerce (DeCarlo, 2011).

Through backing from the existent global consumer base, these entities are able to engage towards supporting producers and farmers, through raising awareness, as well as campaigning for requisite change in existing practice and rules of conventional global trade. This entails the overall raising of living standards through enhanced global minimum pricing of commodities, through support of democratically governed institutions and cooperatives. By requiring a threshold for minimum wages, as well as the safety standards of workers, these organizations further enhance the developing world through training that is aimed at improving the quality of products produced, as well as greater development of their business skills. Consequently, there is a greater drive towards encouraging eco-friendly practices, which are verified through third-party certification (Litvinoff & Madeley, 2007).

To be noted is the fact that, unlike the existent free trade status quo, Fair Trade relies majorly on an informed consumer base choosing more direct means of supply (supply chains), which minimize the role of existing middlemen. This hence aids in advancing not only economic/ trade justice, but also requisite social change, which acting as a sustainable and viable alternative to charity, enhances growth and development of a majority of global farmers and producers. As such, a core question with regard to the above is whether fair trade, being an alternative to charity, does effectively utilize its inherent social premiums for enhanced community progression and if such ideals (ethically-based) can be persuaded upon large entities towards, especially towards committing to their utility of Fair Trade suppliers.

Additionally, there is the pertinent question of whether ethical consumerism can exist and effectively function in the contemporary economic arena. Furtherance is whether market growth, based on Fair Trade, can reach the scale of green or organic products, in terms of sales volume, market penetration and general distribution. To answer the above, I would say that Fair Trade can reach the aforementioned targets, as well as promoting the effective utility of its inherent social premiums. Through these, it can not only enhance community progression, but also provide lasting solutions to some of the resultant effects of free-market economies as based on Capitalist ideals. Large entities, i.e., organizations, corporations and multinationals can often be persuaded towards committing themselves to the utilization of Fair Trade suppliers, hence advancing ethical consumerism (Linton, 2012).

As such, through greater improvement of educational facilities, existent health care, as well as working conditions, the Fair Trade movement has and continues advancing greater common good, with the trickle-down effects translating to saved and enhanced lives. Furthermore, global populations, either group entities or individuals, do have a role in enhancing the fight against not only inequality (in the economic arena), but also in ending or, at least, alleviating global poverty levels. Fair trade hence ensures that both workers and farmers in the developing and/ or under-developed world get a fair and just pricing of not only their products, but also labor/ work-force. Additionally, it is a great promoter of enhanced environmental sustainability, through the creation of long-term based trade relations, by way of availing advancement opportunities, as well as offering safe working conditions.

Social responsibility (ethical/ moral obligations) is critical on the part of not only consumers, but also the supply chain, as well as the entrepreneurial aspect of global trade and commerce. This is due to the existent wide-ranging impact of existent global trade and commerce relationships, which are, unfortunately, often biased towards promoting a few entities good, over the greater majority of global society. By showcasing that the above is not aimed at providing charity, one is hence able to understand that Fair Trade provides two critical aspects requisite towards promotion of social-economic justice. This is first, through aiding individuals/ group entities on the immediate level and hence changing their lives, and second, providing an avenue useful for enhanced agitation and/ or protest, by way of supporting positive outcomes (Litvinoff & Madeley, 2007).

Farmers are hence positively enhanced, through greater promotion of their working conditions, as well as marketing of their goods and products, agitating for better pay and working conditions, as well as overall advancement. Thus, farmers are able to concentrate more on their production, as well as sustainably utilize the fragile environment. All countries/ states are to benefit from enhanced utility of global fair trade as it provides an equal-opportunity platform, contrary to protecting interests of a few entities/ parties. This is especially true with respect to developing world states. It is vital to understand that because of the aforementioned globalization process the world has become interdependent, with logistical capabilities as well as the economy of scale providing undue advantages to already developed and hence strong business entities (DeCarlo, 2011).

Consequently, infant industries, as well as small-scale farmers are often at a loss, especially in the promotion of the sale of their products and goods. Companies also present in such social contexts are, unfortunately, unable to engage in global trade and commerce on a competitive basis as a result of various policies, regulations, rules and guidelines put in place while global trade expands. Strategies, such as utility of barriers and tariffs, advanced state/ government subsidies (in addition to other protectionist procedures), are often well intended, though, in the overall instance, they pose problems to enhanced global trade. A paramount question, often in the minds of proponents of the capitalist way of life, is whether such a practice Fair Trade negatively impacts upon not only a company's profit, but also its position (DeCarlo, 2011).

The answer to the above, as I view it, is two-fold. On the one hand, industries, companies, farmers, as well as producers in the developing world, would be positively enhanced as this would portend to further outreach of their products to expanded markets and hence enhance their profit margins as well as such entities overall global position. On the other hand, the already existent, large-scale (global) entities, having gained undue advantages over the years as a result of unfair trading practices, would feel a pinch as their profit margins would be threatened by other growing firms profitability. Their market positions, at times almost reaching monopolistic levels, would be threatened by new entrants into the market, due to fair/ just and equitable trading platforms.

In conclusion, fair trade is essential towards providing fair and equitable avenues of engaging in global trade and commerce, with various entities having successfully gained from this practice. As such, Fair Trade is critical in enhancing ethical and moral economic sustainability, which provides avenues through which a majority of global populations may gain justly from engaging in international trade. Through this, positive impacts will be enhanced, not only on a personal level, but also as a whole, with the global arena gaining from positive reflections advanced through such trade as based on equity, balance and morally upright (ethically sound) trade and commerce.

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