What is fair trade?
Fair trade means that the producer gets a guaranteed, fair minimum price for his produce. Fair trade also sets minimum standards for the pay and condition of workers.
Advantages of fair trade
- Provides producers with a fair price
- Ensures workers get a fair wage
- Ensures workers get reasonable working conditions
- There are no arguments over price
- Workers can secure a better future for themselves and their families
- It benefits the producers and the manufacturers
- It creates jobs for local people
- It could increase sales because customer like to feel they are helping those less fortunate than themselves.
Disadvantages of fair trade
- The product is usually a higher price than a non fair trade product - the customer pays more
- The product may be a lower quality
- The non fair trade workers get paid less and have worst conditions
- The profits the producer makes may not be reinvested in the workers or local community