Free trade coffee is bought without government restrictions, while fair trade coffee aims to provide fair wages and working conditions. Supporters of free trade argue it reduces production costs, but opponents argue it can lead to unfair treatment of workers and damage to the environment. Fair trade coffee is more expensive but prioritizes the safety and security of farmers and their land.
Free trade coffee is coffee that is bought within or between countries without restrictions from any government. The term “free trade” is often mentioned in discussions of “fair trade,” and the terms are sometimes misused interchangeably. Fair Trade coffee comes from developing countries where the Fair Trade social movement aims to provide sufficient wages and better working conditions for workers. The free trade model has its supporters and opponents.
This café has no monetary restrictions such as taxes or tariffs. Thus, supporters of free trade insist that this model allows producers and consumers to reduce production costs. The logical result could be a reduction in coffee prices.
Opponents of free trade coffee point out, however, that coffee producers and producers are not always fair. Even if the costs will be lower, they could still charge the price they want in the market. Producers would therefore be the only group to gain from the free trade model. However, not all producers can be unfair, nor could they be fair.
One of the main arguments against free trade coffee is that, without any kind of restriction from any government, producers are probably free to treat their workers as they please. Sometimes, this results in low wages and dangerous working conditions, because the money may not be invested in proper clothing or tools. Child labor has also been used in some situations. Furthermore, the negative effects on the environment have resulted from the lack of government oversight and regulation, leaving the land of the coffee farmers devastated and no longer livable.
Fair trade coffee, on the other hand, requires that workers be given a certain amount of money to live comfortably and that no children be employed for the work. With Fair Trade, workers can even get paid vacation time or help with medical needs. Fair traders try to produce coffee in a way that causes as little damage as possible to the surrounding land.
Free trade coffee tends to be sold at the lowest prices, while fair trade coffee is often the most expensive item on the shelves. While there are certainly exceptions, coffee’s free trade advocates are generally more interested in the model economy as far as businesses and consumers are concerned. The interests of fair trade advocates often lie in the safety and security of coffee bean farmers and their land.
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