Fair Trade

International Trade ForumNum. 2/2006, Avril 2006

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Résumé


Fair trade in international commerce has two distinct meanings. In trade negotiations, the term is used broadly to argue that subsidies and disguised barriers skew the global trade system against developing countries and commodity producers. Fair trade often pays the producers one-quarter to one-third more than they can get on the open market. But only Fairtrade-labelled products -- that is, those certified by Fairtrade Labeling Organizations International -- imply agreement on a minimum price. Fair trade labeling initiatives are under way in 15 European countries, while fair trade producers are organized into some 3,000 grass-roots organizations, with umbrella structures present in over 50 developing countries. Apart from coffee, bananas and some other fruits and vegetables, fair trade producers also include artisanal goods. Fair trade organizations use five tools to contribute to development. These are: 1. price premiums, 2. certification and labeling, 3. microcredit, 4. technical support, and 5. advocacy.

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Extrait


Fair Trade

Fair trade in international commerce has two distinct meanings. In trade negotiations, the term is used broadly to argue that subsidies and disguised barriers skew the global trade system against developing countries and commodity producers. Former World Bank chief economist and Nobel Prize winner Joseph Stiglitz, for example, argues for "fair trade for all" in the context of the latest WTO round of trade liberalization, the Doha Development Agenda.

Small share, big voice

Meanwhile, small farmers in d...

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