Explain the importance of fair trade to a national or local economy using one case study:

Fair trade is defined by the World Trade Organisation as 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.Aside from the coffee illustration most commonly used with Fair Trade, the banana industry is the most famous example of fair trade. The banana industry involves thousands of workers in Latin America, the Caribbean, Southeast Asia and West Africa. Governments rely on the industry to support their health, education, infrastructure and other social services.  In the Winward Islands the banana industry brings in about a 1/5 of their total export earnings, and for Ecuador this would be 9% and Costa Rica this would be 8%. At one time ½ of the entire workforce was employed by the banana industry.  When trade laws and regulations are broken or evaded, it puts other trading bodies at a disadvantage. For example if a South American banana industry was to for-go the principles of Fair Trade in exchange for a lower cost of an item this increases the competition unfairly on the banana market. People would rather buy the cheaper pack of bananas than an expensive one. This is what has been happening to the banana trade industry in the Windward Islands.  As a result today in the production costs of bananas have risen whilst the cost of the product has fallen. In 2014 loose bananas were selling for almost 40% less in 2014.  Today over 85% of the bananas grown and exported are Fair trade certified. Recently the Winward Islands were granted access to the UK fair trade market allowed their industry to survive. But because not all organisations are fair trade, the banana industry is still under threat.