Since its long history, Fair trade has been used in many different meaning. However, FINE which is an informal organization of the four main fairtrade networks, created the definition in 2001: “Fair Trade is a trading partnership, based on dialogue, transparency and respect that seeks in greater equity international trade. It contributes to sustainable development by offering better trading condition to, and securing the rights of, marginalized producers and workers-especially in the South. Fair Trade organization (backed by consumers) are engaged actively in supporting producer, awareness raising and in campaigning for changes in the rules and practice of conventional international trade”
The advantages of Fairtrade are as following:
1. To resolve the exploitation between capitalists and producers.
2. To encourage the consumers to buy the fair-trade products in order to help the producers
3. To encourage the producers and consumers to protect the environment and to support labor’s justice treatment.
The disadvantages of Fairtrade are as following:
1. The fairtrade products are expensive and inferior qualities.
2. The problem of Fairtrade confront is that it does not reflect the market realities for the example guaranteeing a price to the agriculturist seem to be simply putting additional costs into the entire process and launch the incorrect signal to the agriculturist.
3. Payment goes to the producers late.
4. Gender prejudice
In conclusion, the defect of Fairtrade has less weight than its advantage. The Fairtrade should teach technology to third world workers, improve the management more efficiently and promote female to reach the high position in its organization.