The Challenges of Marketing Fair Trade - Wynne, Sandy
The Challenges of Marketing Fair Trade - Wynne, Sandy
The Challenges of Marketing Fair Trade - Wynne, Sandy
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
CHAPTER 1: Overview<br />
A) Brief Description and History<br />
1) What is <strong>Fair</strong> <strong>Trade</strong>?<br />
Nearly three billion people, half <strong>of</strong> humanity, live on $2 a day or less, according<br />
to Global Issues. “<strong>Fair</strong> <strong>Trade</strong> is a response to the failure <strong>of</strong> conventional trade to deliver a<br />
better deal” to the poor (<strong>Fair</strong>trade Foundation, Tipping the balance). <strong>Fair</strong> <strong>Trade</strong> is an<br />
alternative trade model developed to help disadvantaged producers in developing<br />
countries by improving their quality <strong>of</strong> life through trading partnerships. <strong>The</strong>se<br />
partnerships address trade inequities in the global marketplace. <strong>Trade</strong> inequities include<br />
lack <strong>of</strong> access to: markets, market information, technology, knowledge <strong>of</strong> best business<br />
and environmental practices, and credit resources. <strong>Fair</strong> <strong>Trade</strong> empowers the marginalized<br />
producers by investing in them, their communities and their environment through<br />
sustainable development so that they can lift themselves out <strong>of</strong> poverty.<br />
<strong>Fair</strong> <strong>Trade</strong> is “an innovative supply chain model which distributes its economic<br />
benefits more fairly among all stakeholders” (Nicholls & Opal, 2005, p.6). This<br />
innovative approach is based on the following principles:<br />
• <strong>Fair</strong> and stable prices covering production costs plus a livable wage<br />
• Transparent and long-term trade agreements<br />
• <strong>Fair</strong> <strong>Trade</strong> premiums for investments in the communities<br />
• Provisions for credit access and market information<br />
• Prohibition <strong>of</strong> labor abuses<br />
• Respect for the environment<br />
• Direct trade with producers, minimizing supply chain length