Fair Trade Products In Canada: An Essay Analysis." (59 Characters)

Background of Fair Trade

Discuss about the Canadian Trade Products.

Fair trade is an independent and third party certification system. Fair Trade Canada is a non-profit certification and public education organization that promotes Fair Trade certified products in Canada. The main aim of the Fair Trade is to encourage the marginalized people to access the market and increase their independence. The system is to empower the producers and encourage the global commerce (Koppel & Schulze, 2013). Fair Trades also encourages communities and allow them to reinvest their Trade profit for other purposes like education, nutritional programs, improved rods and society and others. There are huge advantages of the Fair Trade practices that benefit the producers. Moreover, it increases the sustainability approach and help to improve the economy of the country.

Some of the critical factors that have lead to the increase in Fair Trades because of the increasing imperative coffee growers because of the coffee crisis. Other situations like failure of handicraft sales and the growing interest in the ethical consumerism as a part of the ethical social responsibilities gave rise to the practice of Fair Trade (de Leeuw et al., 2014). The aim of the report is to examine the correct the effects and the economic reasoning behind carrying out the Fair Trade. In order to achieve the target, a detailed analysis of the participation and the development of the Fair Trade in the recent perspective focusing on the Fair Trade of Canada. The background of the topic will be discussed followed by the advantages and disadvantages of Fair Trade. Focus will be made on the Fair Trade practices carried on in Canada and how the country is benefitting economically and socially due to the implication of Fair Trade.

As stated by Andorfer and Liebe, (2012), The Canadian Trade Fair Network believes to connect the producers firsthand with the consumers. It is the belief of the fact that the consumers shall know how the products come to our grocery and how this process actually affects the economy of our country. In Canada, the Fair Trade products are promoted to improve the livelihood of developing the world farmers and other workers. Fair Trade label was first launched under the initiative of Dutch in the year 1988 (Westhead, 2013). The first Fair Trade product was coffee from Mexico that was sold in the supermarkets of Dutch. Gerstel, (2010) commented that the products were even branded and it by the means of Fair Trade, the exploitation of coffee pickers in the Dutch colonies was also opposed. It was in the late 1980s, that several other approaches were taken and the Trade Fair Network was expanded to other markets like Europe and North America (Herpen, Nierop & Sloot, 2012).

Advantages of Fair Trade

In 1997, Trade Fair was internationally recognized and was given a formal identification that was known as Fair trade Labeling Organizations International or FLO (Bondy & Talwar, 2011). The idea behind the creation of this international organization was to unite the national Fair Trade organizations under the same umbrella and create a worldwide standard for harmony. Recently, in the year 2002, Fair Trade International launched the FARITRADE Certification Mark (Dragusanu, Giovannucci & Nunn, 2014). The idea behind such action was to facilitate cross border trade and simplify the export procedure that shall benefit both producers and the exporters (Naylor, 2014). To strengthen connection among the Fair traders and the interested citizens, the World celebrates the World Fair Trade Day. There has been increasing impact of the Fair Trade practices in the recent time. USA and Canada has been benefiting from this trade activity considerably.

Reading Sylla, (2014), a clear idea has been developed on the fact that in today’s economic scenario, more than 1 billion people live below the international line of poverty. Sylla, (2014) further added that these people do not have the access clean water, better health care and education as well. As commented by Marshall, (2013), the gap between the rich and the poor is increasing with the rich people consuming 20% of the 75% of the resources of the World leaving only 1.5% to the poor people (Howard & Jaffee, 2013).  Keeping this perspective in mind, it can be said that trade can be an effective engine to reduce poverty. Thus, it can be said that there is a great scope of economic and indigenous product development. Therefore, there is more profit and more empowerment given to the manufacturer and the producers (Bathelt & Spigel, 2012).

If the advantages that trade has provided are taken into consideration, it can be said that Fair Trade has improved the condition of some marginalized people and has given power to the poorer section of the society to maximize the opportunity to gain better economic results (Taylor & Boasson, 2014). The aim of the Fair Trades is to work with disadvantaged artisans and Fair Traders and build their business. Here lies the difference between the conventional trade and the Fair Trade. The aim of the Fair Trade is to strive more to quickly uplift people from poverty (Baumann, Oschinski & Stähler, 2012). The decision regarding the practice of the domestic trade depends on democratic decision making by the people. In other cases, these decision making approaches are hindered. The practice also supports environmental sustainability and the technique of farming and production are rewarded (Pongratz-Chander, 2014). When the power is given in the hand of the manufacturers, it is expected that their hard work will be paid off and they shall be able to gain better profit in their business.

Disadvantages of Fair Trade

Other advantages of Fair Trade product involves the principles related to economic, social and the environmental issues. People who are involved in the Fair Trade are bound to gain a minimum payment by selling their products (Fergus & Gray, 2014). The working condition as compared to other working atmosphere is guaranteed. People are more comfortable to work with sole responsibility without the interference of any other parties. The wages are fair and the producers gain much amount as would have got otherwise (Reed et al., 2014). The working conditions are also ethical and safe. In addition to these, the profit earned by the indigenous people and be reinvested for increasing the business practices and thus, the endogenous local people gain profit in a more conducive and eco-friendly sustainable environment.

There is no doubt that the Fair Trade practices are increasing in the recent time and has been benefitting both the manufacturers and the consumers. In fact, the practices help in developing the economy of the country. However, in the view point of Bathelt and Spigel, (2012), some of the disadvantages of Fair Trade are that the market is composed of extremely small number of people or marketers. Therefore, there is less scope of diversity or the availability of different products in the market. Again, it can be mentioned that certain cost of certification has to be paid by the traders that seems to be unfavorable to a number of traders (Taylor & Boasson, 2014). In such cases, it can be said that an individual is disadvantaged due to this certification process.

Another important factor that creates a negative impact on the trade activities is that the consumers are more likely to purchase the raw materials rather than making payment of the complete furnished product. It is for the same reason; raw materials are overpriced that to some extent create real issues on the price of the product (Baumann, Oschinski & Stähler, 2012). Instead of tackling the real issues related to the Fair trade practices, it support the unsustainable market and provide an unrealistic price to the consumers.

The products are needed to be certified at least at a minimum Fair Trade certified option. Coffee being the most important Fair Trade product is managed and contracted very efficiently (Pongratz-Chander, 2014). It has been made necessary to mark a minimum Fair Trade certification in each of the products sold. This practice is not only limited to the selling of the product but at every places where the products are sold such as the coffee shop, book store, colleges. In addition to this certification, majority of the Fair Trade products are also labeled as organic (Taylor & Boasson, 2014). These certifications are given by the means of a number of certification standards. It falls under the responsibility of the seller of the organic products to abide by the certification and maintain the particular standard or the policies that are the demands of the Fair Trade products. The duty of the Fair Trade coordinator is to inspect the products and make deliberate and necessary effort to keep a check on the authenticity of the organic products (Baumann, Oschinski & Stähler, 2012). There has been considerable growth in the Fair trade practices in the market of North America. There has been effort made to improve the Fair Trade practices in Canada. The communication process has been made transparent enough to benefit the sellers and the buyers as well. The process has been challenging for the consumers and the manufacturer as well. Therefore, as commented by Fergus and Gray, (2014), that a cooperative and an eligible supply of the products is the major concern for the Fair Trade practices in Canada.

Fair Trade Practices in Canada

If the Future of Fair Trade in Canada is taken into account, it can be said that the Fair Trade practices are evident that there shall be inclusion of a number of other products like beverages, confectionaries and other organic food as well (Pongratz-Chander, 2014). Other products include dried fruits, fruit juices, rice, quinoa, sport balls and wine as well. All these products are of utter importance in the market of USA and Canada. There has been increasing demand of the products in the market and the demand is increasing with time (Taylor & Boasson, 2014).  The domestic firms are growing and people belonging to different age, gender and with different socio-economic background and statuses. People are getting more concerned about their ethical and sustainable approach towards the food products. Apart from this, the supply of beverages and other products that are domestically manufactured shall create great importance among the people of Canada.

In the view point of Reed et al., (2014), the consumers’ knowledge about the Fair Trade products are increasing. The influence of the fair trade has claimed the existence of third party involvement. The Fair Trade practices in North America have seen the influence of the European Union bodies in understanding the Fair Trade practices. There is no doubt that the Fair Trade market is an emerging market in Canada with no sign of slowing down (Fergus & Gray, 2014). There have been similar trends observed in the other organic market of USA. With the increasing impact of transparency in the communication and the supply chain management, the fair trade practices have been increasing importance.

Fair Trade products of Canada changes from coffee to flowers, fruits, vegetables, tea, sugar other such organic products. The plants and animals which are raised or produced as a part of the agricultural system enhances the biodiversity, biological activity and the biological cycle of nature. With the help of the organic form of agriculture, production of vegetables and other things are certified as organic products (Baumann, Oschinski & Stähler, 2012). Coffee is one of the most important products that are sold in the Fair Trade of Canada. It is also considered as an organic product and it has a minimum standard of the organic certification in the Canadian governmental organization. These products are creating great demand among the people of the country. The residents and other people are also benefitting from the impact of Fair Trade that is gaining momentum in the recent scenario. Therefore, it can be said that this mode of trading is in fact a beneficial means for the country and its people.

Future of Fair Trade in Canada

If the growing interest of the ethical consumerism is considered, it can be said that more retailers are taking part in creating a sustainable and an ethical approach towards the consumers. In this respect, it has been pointed out by Koppel and Schulze, (2013), that as per the assumptions of the neo classical economists’ existence of information creates awareness among the people and helps them to make judgmental decision. It is for this reason, a systematic monitoring and regulations on the product are ensured to get a minimum standard of the agricultural products available for the consumers, at a minimum cost (Pongratz-Chander, 2014).

If the Fair Trade practices of Canada are compared with the other Fair Trade markets of the World, it can be said that in Canada, the practice of Fair Trade is to promote the ethical exchange of good. As argued by Bathelt and Spigel, (2012), the Fair Trade practice might cause more damage to the economy of the country. It has to be found that the producers who were the main sellers of the products in the Fair Trade receive higher compensation than the others who purchase the Fair Trade products (Koppel & Schulze, 2013). Moreover, Fair Trade supply chain is shorter than the other modes of business. This is for the reason that the producers are more benefitted than the consumers.

Total global trade fair sale has been considerably increased since 2011. There has been a growth of about 6.7% accounting to at least a rise of 6 billion dollars. In that instance, USA itself accounts for $1.7 billion. Apart from coffee, the Fair Trade products of Canada also comprise of chocolate bars, powder and other cocoa beans and sugar as well (Koppel & Schulze, 2013). This leads to the fact that the Fair Trade products are dairy products. These domestic products set a standard of the domestic products and claim a label of standard (Pongratz-Chander, 2014). In USA or particularly in Canada, a third party certification is indeed important. These labels of certification actually help to determine the quality of the product. These labeling are done on the products like honey or vanilla. These labels form a composite good manufacturing idea to the consumers. It is based on the good labels that consumers are not cheated by the products that they are sold. Therefore, fair trade ingredients provide a transparency among the consumers.

Conclusion:

Fair Trades can be considered as a sustainable tool for boosting the standard of living in the under developed and developing countries. Fair Trade is in fact, a social justice movement and an alternative business model to improve the Global Economy. There have been serious steps taken for the promotion of Fair Trade products. The Fair Trade Coordinator takes the responsibility the complete promotion, education and enforcement as well as implementation of the Fair Trade Practices and Policies that assists the availability of places where the Fair Trade products are sold. The concept of Fair Trade products is gaining priority and is growing in major other places. A lot of researches and provisional practices have been conducted to understand the implication of Fair Trade products and its importance in shaping the economy of a country.

The main aim of promoting an ethical approach towards the production of goods that shall benefit both the producers and the consumers as well happened to be successful by the means of Fair Trade practices. In case of Canada, coffee is one of the important products that has the most impact on the sustainability and production of Fair Trade products. It can be easily said that the impact of Fair Trade products is increasing globally and in case of Canada, this has become one of the important part of the country’s economy. The sale of Fair Trade products has seen considerable rise and at the same time deliberate effort has been made to improve the Fair Trade practices in the region that shall benefit the manufacturer, consumers as well as the economy of the State. 

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