What is the difference between fair trade and normal products?

Answer 1

All other things being equal non-fair trade items could be sold for less than fair trade goods because the cost of purchase would be lower.

This is not often the case as the retailers of the goods wish to maximise their profits and so sell them at what is seen as normal market price.

Answer 2

"Fair Trade" is a category that can mean a great deal depending on who sets the standards.

"Fair Trade" certification is offered by a number of different organizations. One of them is the Fairtrade Foundation. They give this as their mission ststement:

Fair trade is a trading partnership, based on dialogue, transparency and respect that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalised producers and workers - especially in the South.

In practice, this results in growers and producers in the 3rd World having to charge 1st World prices for their goods and services, meaning these items lose their competitive advantage and compete on an equal footing with 1st World goods. Typically, it also requires some sort of union membership for the 3rd world producers.

This movement is primarily supported by agricultural concerns and unions who are opposed to free trade, because it offers all of the benefits of a tariff without the risk of retaliation by other countries.

Answer 3

For instance take chocolate. The cacao beans for the fair trade chocolate are sold for a fair price. The people who harvested them got a fair salary. And the working conditions are better. With normal chocolate you don’t have all of this. There’s no difference in quality. Both are the same. There is however a difference in price. Fair trade chocolate is more expensive.