Fair trade

Fair trade is a business and social movement whereby a producer in a developing country is paid at a rate higher than the generally prevailing market price for their goods. Generally producers of goods like coffee, tea and chocolate benefit.

While well intentioned, Fair Trade well may encourage overproduction of certain commodities. As a low price normally means supply is outstripping demand, such overproduction may well exacerbate the condition that FT is trying to correct.

In order for a product to be marketed as Fair Trade, certification by an independent entity is generally required.

## See also[edit]

* Trading