World Trade in bananas Flashcards
outline banana trade
5th most traded agricultural commodity
grown in tropical regions
- Central America
- average 27c
ecuador largest exporter
- 28% in 2022
US and EU largest importers
- 18% to US
Major TNCs eg Chiquita
Patterns of the banana trade
Exports:
Central America - Ecuador, 28% in 2022
Have right climate
Controlled by US TNCs
Central American and Caribbean 80% exports
Imports:
US and EU, US = 18%, largest
LICs -> HICs
ways the banana trade reflects international trade
LICs exporting low value goods to HICs
most income stays with HIC
- controlled by US TNCs - 90% prices stays in US
what is fair trade?
social movement that helps
- producers achieve better trading conditions to promote sustainability
- fair and garanteed price for goods
- better working conditions
- investment in area to improve living
environmental impacts of banana trade
- monoculture, reduces biodiversity
- deforestation, to clear space for plantations
- waste - for 1 tonne of bananas = 2 tonnes of waste
social impacts of banana trade
trade wars
- EU gave former colonies SDT
- protected smaller producers in colonies from competition in Latin America
- US TNCs filed complaint - unfair trade
US imposed sanctions on EU products = trade war
- EU eventually reduced tariffs on Latin American- more fair
race to the bottom
- companies relocating for lower labour costs and weaker environmental laws eg West Africa
- bad for environment
- poor working conditions, long shifts and heat
what is the El Guabo Association of Small Banana Producers
one of worlds largest produces of fair-trade bananas
- allowed producers to get better prices through fair-trade
+ improved incomes and standard of living
+ improved investment in education
+ better healthcare
Limitations of fair trade
Relies on consumers in HICs making ethical decisions
Fair trade goods often cost more
How banana trade effects own lives and around the world
Allows access to bananas
Cheaper access
my life - UK largest EU importer at 1.15 million tonnes
Impacts people around the world
Fair trade helps producers
positive impacts of world trade in bananas
growth in fair trade
- improvement in lives of producers
- allows investment in health and education
eg El Guabo Association of small banana producers
allows cheap access to bananas across world
eg in UK
also staple food for many people
provides employment
- 300,000 employed in industry in Philippines
negative impacts of world trade in bananas
race to the bottom
= injustices and environmental issues
trade wars
unequal flows of money
production in Central America controlled by US TNCs, 90% profit stays in US
environmental issues
- monoculture, waste and deforestation
exploitation of workers
- ecuador = $400 a month, below poverty line
