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Glite Dictionary
fair-trade agreement

fair-trade agreement

5.7
A deal where a maker tells stores not to sell a branded product below a fixed price
  • noun
  • /fɛr treɪd əˈɡrimənt/
  • Specialized
translation icon : acuerdo de comercio justo
  • A fair-trade agreement prohibited stores from selling the product at a discount below the manufacturer’s set price.

Examples

  • Legal reforms eventually outlawed most forms of the fair-trade agreement in the United States.

  • During the 20th century, fair-trade agreements were controversial and often challenged in court.

  • The company signed a fair-trade agreement with its suppliers.

  • Many consumers prefer products with a fair-trade agreement.

  • A fair-trade agreement ensures that farmers receive a minimum price for their goods, protecting them from market fluctuations.

  • The retailer must adhere to the fair-trade agreement, which prevents them from selling the product below the agreed price.

  • Many brands promote their products with a fair-trade agreement to appeal to socially conscious consumers.

Surface Forms

fair-trade agreement singular
fair-trade agreements plural

Morphology

fair-trade + agreement

The phrase is compositionally built from 'fair-trade' + 'agreement', so a B1 learner who knows the constituents would reasonably infer it concerns an agreement about fair trading. However, the technical legal sense given here—an agreement to fix minimum resale prices (often illegal)—is specialized and not predictable from the plain meanings of the parts, so the expression is only partially transparent.

Etymology

Fair-trade agreement comes from the simple image of a maker and shops making a rule: the maker sets a minimum price so the sale of the product is seen as fair and the trade is the same for everyone. That's why it means a formal agreement to fix prices, a practice that is often 'illegal' today.