Fair Trade Agreement

Under EU law (Directive 2005/29/EC on unfair business practices), the infringement is committed when (a) it contains false information and, therefore, could mislead or mislead the average consumer, even if the information is objectively correct, or if the average consumer needs it. and, therefore, induce or induce the average consumer to make a transaction decision that he would not otherwise have made,” or (c) “does not recognize the commercial intent of the business practice … [which] will encourage the average consumer to make a transaction decision that they would not otherwise have made.┬áPeter Griffiths (2011)[29] refers to false claims that fair trade producers benefit from higher prices and the almost universal lack of disclosure of the additional price of fair trade products, the real share of developing countries, what is being spent in developing countries, what farmers get, if at all, and the harm that fair trade causes to producers of unfair trade. It also points out that it is not revealed when “the main business intention” is to make money for retailers and traders in rich countries. According to EFTA, the defining feature of alternative trade organizations is fair partnership and respect – in partnership between producers and importers in the development region, stores, labelling organisations and consumers. Alternative trade “humanizes” the trade process – and makes the producer-consumer chain as short as possible, so that consumers become aware of the culture, identity and conditions in which producers live. All actors adhere to the principle of alternative trade, the need to represent interests in their working relationships and the importance of awareness and lobbying. [80] Examples of these organizations are: Ten Thousand Villages, Greenheart Shop, Equal Exchange and SERRV International in the United States and Equal Exchange Trading, Traidcraft, Oxfam Trading, Twin Trading and Alter Eco in Europe, and Siem Fair Trade Fashion in Australia. The sale of fair trade products really only started with the introduction of the first Fair Trade Certification Initiatives. Although fair trade was boosted by ever-increasing sales, it was generally present in relatively small global stores, scattered throughout Europe and, to a lesser extent, in North America.

Some thought that these cases were too disconnected from the rhythm and lifestyle of contemporary developed societies. The inconvenience of going home to buy only one or two products was too high, even for the most dedicated customers. The only way to increase sales opportunities was to offer fair trade products, in which consumers usually buy, in large distribution channels. [65] The problem was to find a way to expand distribution without compromising consumer confidence in fair trade products and their origin. Free trade advocates insist on removing barriers between countries and removing preferential policies that favour countries or certain industries. Free traders believe that a company should succeed or fail on the basis of its ability to respond to the free and open market, without the need for specific state protection to protect the industry or its workers. Many free trade advocates for the abolition of tariffs and subsidies and oppose rules that require companies to pay extra for transactions in foreign markets. Although there have been studies that have characterized fair trade as beneficial and effective,[148] other studies were less favourable; Restrictions on the benefits of fair trade.

Sometimes criticism is inherent in fair trade, sometimes efficiency depends on the broader context, such as lack of state assistance or price volatility in the global market. [149] All of these agreements still do not collectively add up to free trade in its laissez-faire form.

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