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International Trade: Term Definition


International Trade is a very integral part of the world economy, many countries proper because of the international trade, fair trade comes under international trade and more light will be thrown upon the same in this paper. Fair trade is a practice which is predominant in developing countries; developing countries make the most of fair trade. It is very fair to say that Fair trade is more of a social movement than anything else which empowers and strengthens the economy of developing countries. Fair trade ensures the economic security of workers and producers; it reduces their vulnerability to a great extent, so it is very beneficial to the producers and the workers who participate in the same. This paper will throw light upon Fair trade and is the current marketing strategy for Fair Trade Brands sustainable?

Fair Trade and Its Principles

As discussed earlier, Fair trade mainly exists in developing countries and it targets specific areas for instance, the Handicrafts, Coffee Industry, Tea Industry etc, it does so in order to make sure that the workers and the producers are benefitted and their economic stature improves by participating in Fair trade. To understand the concept better, its principles should be well understood and they are as follows:

“Creating opportunities for economically disadvantaged producers, Fair trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.” (Key Principles of Fair trade, 2009). The most important principle of Fair trade is to ensure that there are ample opportunities provided to the producer, the sole aim of Fair trade is to ensure the well being of the workers and the producers and in this process the first is to provide opportunities to the producer because only when the producer has opportunities, it can be passed on to the workers.

“Transparency and accountability, Fair trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.” (Key Principles of Fair trade, 2009). Another important principle of Fair trade is to make sure transparency exists in every activity initiated by it, in the sense that every activity initiated by Fair trade should be without any fusses and problems, fair rules and policies are followed hence ensuring the economic and financial safety of the producer. Another important principle is to make sure that the producer gets complete independence, in the sense that he/she shouldn’t have restrictions hampering their growth, it provides a very good platform for the growth of the producers and it also improves their marketing skills by giving them access to the market where they get to know so many things which they wouldn’t have learnt had they not participated in Fair trade.

Some other important principles include, Gender equality, providing a good environment, a policy of fair price etc. Fair trade is not mutually exclusive to men, it is open to men as well as women and no discrimination on the basis of gender or for that matter on the basis of anything takes place when people participate in it. The environment provided to the people who participate in Fair trade contributes a lot in their growth; the environment provided to the people is very desirable and appropriate for the producers and the workers to grow as individuals. The people who represent Fair trade also make sure that the price policy adopted is very genuine to all the members who participate in it, no double standards are followed by the committee members, it treats everyone equally regardless of their background or how strong/weak their position is in the market.

Fair Trade Brands

As discussed earlier there are some areas which are being specifically targeted by Fair trade for instance the coffee industry, the tea industry etc. The people around the world never mind paying a little extra money to get the tag of fair trade premium, this gives them satisfaction instead and they realize that the farmers in the developing countries are not being exploited. The concept of Fair trade branding can be better understood with the help of an example, which is as follows:

“The fair trade food market has become so hot, that Tesco launched on Monday its own fair trade brand, while the rival Co-op chain is doubling its line. Tesco’s new own Fair-trade brand includes orange juice, mangoes and roses, as well as the coffee, tea and chocolate it has kept in stock for many years.” (How fair trade hit the Main stream, 2009). The main aim of the company is to have a customer base who have always bough the products generated by Fair trade. There are so many consumers all across the globe who prefer the products with the tag of Fair trade on it and the endeavor of the company is to make sure that the product launched by them is liked and consistently bought by those consumers. “Fair-trade Foundation, the organization which promotes better working conditions and trade terms for developing world producers, says annual fair food sales have hit the £100m mark.” (How fair trade hit the Main stream, 2009). The facts are in front of everyone to see and to make the most of it, this is exactly why Tesco launched its own Fair trade product and the global reach of Fair trade provides an excellent opportunity to all the producers across the globe. The Fair trade products have become very popular and the same has been done by spending very little money on advertisements of the Fair trade brands. The consumers are more than happy to pay a little extra amount for the products generated by the producers who participate in Fair trade. The global reach of Fair trade is undeniable and it has gained popularity with in no time, the £100m mark achieved by the sales of the products is a good enough indication of the same. “Data show that Britons are avidly buying fair-trade groceries, organic foods, and sustainably farmed produce. Experts speak of a cultural shift in which foodstuffs once considered niche and expensive are now going mainstream.” (Fair Trade Food Booming In Britain, 2009).

Fair trade is picking up in European countries; it is immensely popular in Britain and it is expected to spread to other countries too within no time. “In late 2005, Nestle, one of the world’s most controversial companies, released its own Fair-trade coffee: Partners’ Blend.” (How Fair is Fair Trade? 2009). This is another example of how big companies are taking notice of how well the Fair trade products are doing in the market; every company is always looking to make the most of the opportunity and there can be hardly be a better opportunity than the one presented by Fair trade. Initially Nestle considered that Fair trade is bad for the companies and decided not to be a part of it but the market forces have proved the company wrong, the company officials are quick to acknowledge their mistake and they just want to make sure that they learn something from their mistake. The product launched by them has already surpassed their expectations and the company had certainly made the most of the opportunity presented by Fair trade.


Fair trade products have become an instant hit in the market and more and more consumers are opting to buy Fair trade products. The products have shown a global reach which is the biggest advantage, more and more companies are launching their own brand of Fair trade products, this only goes to show one thing, which is that the marketing strategy for their trade brands is very sustainable. The Fair trade brands have already become instantly popular among the consumers and the brands will only get more popular as time passes by. Very little money is required to be spent in order to promote the Fair trade brands; this is very evident from the example of the companies used in the paper. The same is a clear indication that the marketing strategy for the Fair trade brands is very sustainable.


Fair Trade Food Booming In Britain. In The Christian Science Monitor. 

How Fair trade hit the Main stream. In BBC News. 

How Fair is Fair Trade? In BBC News. 

Key Principles of Fair trade. In Manly. NSW. Web.


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