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GCSE Geography · key term
A trading system intended to give producers fairer terms, including minimum prices for many products and an additional premium for producer or community projects.
Used by AQA and OCR
Paper 2
Revise: Reducing the Development GapFairtrade aims to give producers fairer trading terms. For many products, it provides a minimum price that protects producers when market prices fall, together with a separate premium for projects chosen by producer organisations. More dependable earnings help producers plan ahead, while the premium can support community development.
Specification 8.2c · Paper 2, Paper 3
A certification system that aims to make trade fairer for farmers and workers through pricing arrangements, an additional Premium and social and environmental standards.
Fairtrade is not the same as free trade. Fairtrade supports producers through trading standards; free trade reduces barriers such as tariffs.
Distinguish the Fairtrade Minimum Price from the Fairtrade Premium: one provides a price safety net; the other funds investments chosen by producers.
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Fairtrade is a certification system used for products such as coffee, cocoa, bananas and tea. It aims to make trade fairer for the farmers and workers who produce them.