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The Ecuadorian Rose Industry

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by

Siyi Tu

on 24 September 2013

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Transcript of The Ecuadorian Rose Industry

Ecuadorian Rose Industry
Setting the Scene

Ecuadorian rose industry started around 20 years ago
4th largest producer of roses
Nation's fifth largest export
Competitive advantage in production of roses
intense sunlight, fertile volcanic soil, equatorial location, and high altitudes
The Rose Industry
The Pros
$240 million in sales
Supports tens of thousands of jobs
Revenues reinvested into country infrastructure
Pays above minimum wage and includes benefits
Discussion Questions
1. What roles does the United States and other developed nations have in promoting poor working conditions in Ecuador?
2. Should trade sanctions be implemented to promote socially responsible work practices? What are the consequences of implementing these?
3. What's your personal opinion about purchasing roses after hearing this case?
By: Siyi Tu, Shiwaj Neupane, Chris Bulgarelli, Jeanna Wong, Wongyung Moon, Pedro Hernandez
The Ecuadorian Rose Industry
Recommendations
References
1. http://www1.american.edu/ted/rose1.htm
2. http://www.dol.gov/ilab/programs/ocft/2011TDA/
Ecuador.pdf
3. http://www.economist.com/node/5526580
4. http://edis.ifas.ufl.edu/pi061
5. http://www.jguzak.com/International%20Trade
%20Theory%20Charles%20Hill.pdf
6. http://www.laborrights.org/creating-a-sweatfree-
world/fairness-in-flowers
7. http://www.laborrights.org/creating-a-sweatfree-
world/fairness-in-flowers/what-can-you-do-to-support-
flower-workers#action
8. http://www.motherjones.com/politics/2002/01/
deflowering-ecuador
9. http://www.nytimes.com/2003/02/13/us/behind-
roses-beauty-poor-and-ill-workers.html?
pagewanted=all&src=pm

The Cons
Environmental hazards
- Misuse of toxic
mixtures of
pesticides,
fungicides, and
fumigants
Poor working conditions
- Health problems in
workers
- Child labor
- Still below subsistence
wages
Reactions to the Problem
International Labor organization has done studies in Ecuador to evaluate working conditions
Industry has been strongly criticized by environmentalists
European consumer groups urged for improved environmental safeguards and trade sanctions
Some rose growers are joining programs that help consumers identify responsible growers
Antecedents
No enforcement of labor laws
Advantageous growing conditions
Worldwide demand for roses
Low barriers to trade
Export of pesticides from United States, that are illegal within US borders
Investing in protective equipment for employees
Decrease use of toxic chemicals in treating roses to legal limits
Improving environmental management and control practices
Join a voluntary certification program to show socially responsible practices
Full transcript