First of all , Fairtrade initiatives as an mechanism which permit the poor people who come from developing country to cooperate as a corporation in their country for entering the global market in order to selling their commodities such as coffee or other organic goods under the condition of Fairtrade label.They will gain advantage from this organization and also their commodities can export to ‘market niche’ in Europe and North America[1].
Next,Fairtrade have imposed criterion for guarantee that almost parties are engaging in the plan in a trustworthy and voluntary method .It can show that with FLO(Fairtrade Label Organisation) establishing inadequately imposeed standards from deliberate decrees to regulation, the legality of fair-trade demoralized[2].
However , Fairtrade is as a voluntary for consumer-driven campaign which is a free market system for them as a mechanisms for processed commodities.It cannot be dislike to this free market[3].
Besides, Fairtrade does not issue the root causes of poverty. Some economists claimed that low prices for basic commodities ; for example ,coffee that result from oversupply. Furthermore ,Fairtrade also does not guarantee access to investment or technology because of having only a tiny volume of the world trade relative to the total volume[4].
In Addition, poor people of developing world will get more profit margin. Fairtrade also pay a price to farmers for a higher than market price After that it can occur overproduction . They concern only to the plight of poor farmers ,farm workers, and producers in developing countries[5] .
Ultimately, Fairtrade producers can progress their global level economy by training and the improvement of associations based on reliance and cooperation as well[6].
[1] G Fridell , Fair Trade Coffee (The prospects and pitfalls of market-driven social justice, Toronto, 2007) 85
[2] K Macdonald and S Marshall,Fair Trade, Corporate Accountability and Beyond (Experiment in globalizing Justice.Australia,2007) 132
[4] Schaffer , Agusti and Earle, International Business Law and Environment (7th edn, South-Western 2009,2005) 430
[6] G Fridell (n1) 85-86
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