Introduction The concept of fair trade began in the 1950s and has been developed for 30 years to support poor people in developing countries (Gendron, Bisaillon and Rance, 2009). The debut of the Fair Trade brand in 1988 was an important move by the fair trade movement (Mohan, 2010). (FLO) collects certification fees from producers for fair trade labels and benefits (Booth and Whetstone, 2007). Fair trade is a social organization aimed at helping producers in developing countries improve trade terms and promote sustainability (Hayes and Moore, 2005).
Certification bodies are organizations / organizations that certify producers and importers when producers and importers follow the guidelines for fair trade. The Fair Trade Labeling Organization is an organization that implements Fair Trade certification for producers around the world and ensures that producers comply with producer's fair trade standards. They obey the importer / processor's fair trade standards. Similarly, there are other organizations that certify importers and processors as fair transactions in other countries (Japan, Germany, etc.). There are importers, retailers and producer organizations that promise to follow the Fair Trade Federation, specific Fair Trade guidelines, but these standards are not implemented and are not certified to meet that standard.
The Fair Trade label means that organizations like the Fair Trade in the United States have proved that farmers and other producers are complying with Fair Trade standards. The organization reviews the supply chain of the product and confirms that a fair transaction price has been paid. Importers and processors will pay for the license and processing will begin. Paul Rice, founder and president of the US Fair Trade Company, says: Free trading delayed small producers when large subsidies began to take over their industries. Large contract farms can sell products at lower prices, but local farmers traditionally supplying these products are in debt. The only way for these farmers to compete with farms that are subsidized is to lower the price of the product as long as the freedom of labor is unsustainable and the quality of life is unsustainable.
At the turn of the century, an organization called Fair Trade appeared. Fairtrade coffee has become very popular over the past two decades. Fairtrade's idea is to pay more farmers for farmers to live better. Most fair trade farmers are from Latin America. There is controversy about the effectiveness of Fair Trade. Proponents believe that Fair Trade will help farmers get higher salaries and live better lives. Opponents believe that Fair Trade does not keep records and can not assume responsibility.