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adding comment on encouraging overproductin of commodities
'''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. This is generally done because many producers of goods like [[coffee]], [[tea]] and [[chocolate]] do not receive living wages for their work.
'''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. This is generally done because many producers of goods like [[coffee]], [[tea]] and [[chocolate]] do not receive living wages for their work.
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<ref>http://www.transfairusa.org/</ref> is generally required.
In order for a product to be marketed as Fair Trade, certification by an independent entity<ref>http://www.transfairusa.org/</ref> is generally required.