Twenty years ago, Fair Trade started as an effort to enable
smallholder producers from developing countries to successfully
compete in international markets. Better access to market outlets
and stable prices are considered key principles for sustainable
poverty reduction and stakeholder participation based on 'trade,
not aid'. While Fair Trade is primarily conceived as a trading
partnership - based on dialogue, transparency and mutual respect -
seeking greater equity in international trade, it relies on an
organized social movement promoting standards for production
practices and delivery procedures, working conditions and labour
remuneration, environmental care and social policies in supply
chains of certified tropical goods. Over the past two decades,
sales of Fair Trade products have considerably increased. After the
first shipments of coffee, the range of products has gradually
broadened to include fruit (particularly bananas, pineapple and
citrus), tea, cocoa, textiles, cosmetics and a whole series of
other products. Global Fair Trade sales have steadily grown to
approximately EUR 1.6 billion worldwide, covering almost 600
producer organizations in more than 55 developing countries that
represent close to a million families of farmers and workers. In
recent years, efforts have been made towards mainstreaming of Fair
Trade involving large international companies and retail chains.
While numerous case studies and descriptive overviews are available
to illustrate the importance of Fair Trade for producers and their
families in developing countries, little quantitative evidence has
been presented to review the socio-economic impact of Fair Trade.
This collection of articles provides the first balanced in-depth
analysis of the real welfare impact of Fair Trade, paying attention
to key dimensions of income, consumption, wealth, environment,
empowerment and gender. The core articles are based on extensive
field surveys in Peru, Costa Rica, Ecuador, Ghana, Kenya and
Mexico, and provide valuable insights in the contributions and
constraints for producers’ involvement in Fair Trade. In
addition, attention is paid to the broader implications for
international trade regimes and the ethical perspectives on Fair
Trade.
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