The current organization of global trade means that poor countries lack opportunities to engage in trade to their advantage.

• The fifth richest countries have 80% of the world's income. The poorest fifth have 1%
  Source: United Nations Human Development Report
  
• The world's poorest 49 countries make up 10% of the world's population but count for only 0.4% of world trade
  Source: UNCTAD, United Nations Conference on Trade and Development
  
• The United Nations estimates that poor countries lose about $2 billion per day because of unjust trade rules
  Source: UNCTAD
  
• The world's poorest countries share of world trade has declined by 40% since 1980
  Source: UNCTAD)
  

Differences in revenue

Between the 20% richest persons in the wealthiest countries of the world and the poorest 20% of the world's poorest countries:

• 3 to 1 in 1820
• 11 to 1 in 1913
• 30 to 1 in 1960
• 74 to 1 in 1997

Source: UNDP

The North South divide

Small producers have to endure the combination of weak local markets and the failure of local policies to address development challenges. In addition to the above, the high volatility of international markets and the lack of regulations and protection of the interests of countries in the South by international institutions worsen this already precarious situation.

We now live in a global economy that advances at a double pace:

• On the one hand, nations and multinational firms are able to benefit from the expansion of free trade and of the financial monopoly that international institutions command.
  
• And yet on the other hand, countries with fragile economies and production structures find themselves unable to bear the weight of these liberal standards. As a result, poorer countries are all too often excluded from the international trade system.

The wealthiest nations that comprise 20% of the world control:

• 82% of export markets (the world's poorest 20% nations have 1%).
• 68% of direct investments
• 95% of research spending
• 74% of telephone line

The Fair Trade response to current trade rules

For trade to be fair, structural changes in current trade practices are necessary. Indeed, due to current trade rules and the structure of profit margins, the producers' margins are steadily decreasing as a result of continued pressure and competition imposed by certain retailers and industrial groups. This system also is responsible for degrading the terms of trade: While the price of raw materials continually decreases, the price of consumer goods steadily increases.

Fair Trade creates favorable conditions to achieve its goal by setting trade standards based on fundamental commitments and progress criteria. Despite the response provided by the Fair Trade model, there are issues that have yet to be overcome in order to reduce the actual North-South divide.