The result of the pattern of world trade is that the workers in primary industries in LEDCs often lose out. They receive low wages and often have poor standards of living. They cannot afford education for their children and many children are required to work to help their families earn a living.
Fair trade means that the producer receives a guaranteed and fair price for their product regardless of the price on the world market. This means their quality of life should improve, as well as the long-term prospects for their children.
Fair trade products sometimes cost more in supermarkets in MEDCs, but many consumers consider this a small price to pay for the benefits they bring.
Fair trade sets minimum standards for the pay and conditions of workers. The Fair Trade Organisation promotes Global Citizenship by guaranteeing a fair, minimum price for products. In this way, they support producers in improving their living conditions. About 5 million people benefit from Fair Trade in 58 countries.
Fair trade products are becoming more widespread and include tea, coffee, sugar, chocolate and cotton.
The banana trade in Ecuador.