Fair Trade Flashcards
What is fair trade?
A movement whose goal is to help LIC producers achieve better access to markets, including fair prices, and to improve social and environmental standards.
How big was fair trade at the start? How big is it now?
Started being sold in only a few, small specialist stores. Now in mainstream supermarkets.
What are some examples of unfair trade?
- HICs using quotas and tariffs to protect own farmers eg India 40% tariff on agricultural products in 2020.
- HICs dumping surplus food on market, reducing world price.
- HICs giving surplus food as aid, making LIC farmers struggle.
What are Fairtrade standards?
Designed to address the imbalance of power in trading relationships, unstable markets and the injustices of conventional trade. They cover a large range of products eg tea bananas cocoa flowers jewellery. They set some rules eg Fairtrade Minimum price ( minimum that MUST be paid to producers ). They also get Fairtrade Premium, to invest in communities or businesses.
Who is the UK representative in the Fairtrade International?
The Fairtrade Foundation, a non-profit organisation.
What are some benefits of fair trade?
- Stable prices for producers
- Additional funds for producers to develop
- Producers are involved in decisions, such as standards, prices and overall strategy
- Shoppers can buy products which align with their morals and principles
- Producers must protect environment
What are some criticisms of fair trade?
- Fair trade products can be sold in shops at any price, unsure how much of the money actually goes to producers
- The poorest of farmers are unlikely to meet standards in order to join fair-trade, as they must be quite skilled and educated
- Fairtrade certification brings extra costs to farmers, unsure whether being in fair-trade makes them more money than non-members
How many farmers and workers are in the fair trade system?
1.9 million
Give an example of the success of fair trade.
PRODECOOP IN NICARAGUA:
Nicaragua relies heavily on crop income, especially coffee. Lots of coffee farmers couldn’t afford to sell coffee beyond local area. Prodecoop, a large coffee farming company in Nicaragua, adopted fair trade operations, has now constructed schools and healthcare centres, books and backpacks for over 2,000 kids, female participation programme.
Give an example of the failure of fair trade.
BANANA FARMING IN DOMINICAN REPUBLIC:
Dominican Republic large supplier of bananas to Britain (25% of DR bananas go to Britain). 70% of all bananas in DR are fair-trade. However many plantations relied upon illegal Haitan immigrant labour.
