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What Is A Fair Trade Agreement

Consumers generally have a positive attitude towards ethically produced products. These products may contain promises of fair working conditions, environmental protection and the protection of human rights. All fair trade products must meet these standards. Despite a positive attitude towards ethical products, including fair trade products, consumers are often unwilling to pay the highest price for fair trade coffee. The behavioural attitude gap may explain why ethical and fair products occupy less than 1% of the market. Coffee consumers may say they would be willing to pay a higher premium for fair trade coffee, but most consumers are actually more concerned about the brand, label and taste of coffee. However, socially conscious consumers who feel compelled to buy fair trade products are more likely to pay the premium for fair trade coffee. [99] Once enough consumers start buying fair trade, businesses are more likely to carry fair trade products. Safeway Inc. started with fair trade coffee after individual consumers dropped postcards and requested it. [100] In the following years, agricultural raw materials from fair trade played an important role in the growth of many PDOs: they were successful in the market, provided producers with a much-needed source of renewable income, and offered alternative trade organizations a complement to the craft market. The first agricultural products from fair trade were tea and coffee, followed quickly: dried fruit, cocoa, sugar, fruit juices, rice, spices and nuts.

While in 1992, an 80% sales rate of handicrafts for 20% of agricultural products was the norm, handicrafts accounted for 25% of fair trade turnover in 2002, while raw material lines increased by 69%. [64] In order to complement the fair trade product certification system and, above all, to allow artisan manufacturers to sell their products outside of international activities, the World Fair Trade Organization (WFTO) introduced a new brand of identification for fair trade organizations in 2004 (unlike FLO International and Fairtrade products). The FTO[78] label allows consumers to recognize registered fair trade organizations around the world and tries to ensure the implementation of standards for working conditions, wages, child labour and the environment. The FTO label provides fair trade organizations (including craftsmen`s manufacturers) with defined standards to inform consumers, trading partners, governments and donors of the applicable trade standard. In 2014, the Mark Fair Trade Programme was launched to create new opportunities, first for cocoa, sugar and cotton producers. [79] It has the same round logo next to the word FAIRTRADE in black and under the title of the program in turquoise.