banana wars Flashcards
two types of farmers
caribbean
TNC latin american (Chiquita)
caribbean farmers
small plants
independant
more expensive
natural farming
50%+ rely on banana exports for basic needs
TNC latin american farmers
farms owned by TNC
employ workers (cheap labour)
deforest trees - soil erosion
chemicals used - harm workers and their children
local water source contaminated
cause of banana wars
UK trade with caribbean due to colonial history
EU trade with cheaper TNC latin american
UK & EU enter free market - UK ‘should’ trade with TNC as cheaper (7% from caribbean 75% from TNC)
TNC & US complained to WTO as seen as unfair to still trade with caribbean due to their low cost
US placed tariffs on scottish whiskey & EU wine - to balance
WTO said “trade in free market on economic terms not social/environmental”
US won so UK only trade from TNC - UK reduced tariffs on US bananas (£60 less per tonne)
consequences for caribbean farmers - consequence of globalisation
lost trade to UK
used to export 76,000 tonnes
loss of land and bananas - debt
30% of farmers turned to growing weed as high value - ILLEGAL
US (governmental intervention)
bad trade dispite trade agreement
TNC large influence on smaller farmers
lead to consequences for carribean
pros of fair trade bananas
higher wage for famers in free market
better working conditions
no discrimination
less child labour
helps small businesses to be competitive internationally
cons of fairtrade bananas
high fees
less production choice
big buyers not attracted s more expensive
no drive to be more efficient as guarenteed to be paid
