Fair trade is an alternative form of trade promoted by various non-governmental organizations, by the United Nations and by social and political movements (such as pacifism and environmentalism) that promote a voluntary and fair trade relationship between producers and consumers. The principles defended by fair trade are:
* Producers are part of cooperatives or voluntary organizations and function democratically.
* Free initiative and work, in rejection of subsidies and assistance (hence the phrase of fair trade: “Trade, not aid”).
* Rejection of child exploitation.
* Equality between men and women.
* Work is made with dignity, honoring the human rights.
* The price paid to producers allows decent living conditions.
* Buyers generally pay upfront to prevent producers from looking for other ways to finance themselves.
* Quality and ecological production are valued.
* Take care of the environment
* A way is sought to avoid intermediaries between producers and consumers.
* Consumers are informed about the origin of the product.
* The process must be voluntary, both the relationship between producers, distributors and consumers. It is in favor of free trade under equal conditions, that is, abolishing discriminatory restrictions on products from developing countries, from raw materials to manufactures or technology. That way discrimination and protectionism are avoided. It also tries to avoid the great differences between the price that consumers in the first world pay for a product and the money that its producers are paid in the third world, in addition to avoiding the exploitation of workers. In addition, this helps to offset the effects of the consumer obsession with the cheapest price, without other consideration, and its consequences:
* Progressive deterioration of the quality and durability of the products.
* Exploitation of producers (see slave labor workshop).
* The fair price, that is, that it does not contain components influenced by state interventions or subsidies that distort the concept of fair trade. The distortions and consequent complaints in the market derived from the subsidies are raised by the interested parties to the World Trade Organization. Fair trade can be considered a humanist version of free trade, which, like free trade, is voluntary between two parties, and would not take place if both parties did not believe that they would benefit.