FAIR TRADE DAY

Fair vs Unfair Trade

Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South.

Unfair trade is trade that doesn't allow for open markets or competition. It can be because of powerful monopolies, a corrupt government, insufficient or non-existent antitrust enforcement, etc.

Examples of Unfair Trade (wine producers)

Where Does Fair Trade Start?

Problems facing wine producers:

-labor abuse

-the quality of the wine

-uniquely flavorful wines

-unable to complete and are being put out of business

-unique economic,social and political challenges

Wine Production

However, fair trade sometimes can have some negative effects, which makes it similar to unfair trade.

1) Dependency on the Richer: - Largely dependent on richer consumers.

- The requirements of the fair trade production necessitate higher prices

- only affordable to the consumers who are able and willing to pay more for a given product.

2) Failure to monitor Standards: - Certain standards have to be met, which can be quite high.

- These outweigh the amount made by selling the produce, making Fair trade detrimental for the farmers.

3) Corruption: - Corruption comes in various forms.

For example: False labeling of coffee as fair trade by both packers and retailers, kickbacks to exporters who pay less than the Fair trade price for Fair trade coffee, not paying labourers the specified minimum wage and failure by the cooperatives running the Fair trade farms, to provide credit.

4) Overproduction: - Fair trade harms all non Fair trade farmers.

- Fair trade farmers a given help and advice on how to increase crop yields and crop quality.

- Due to this, farmers will produce more goods which increases their supply.

- If supply is higher than demand, the prices go down.

- A fair trade farmer will receive a minimum price for his/her goods, regardless of supply and demand.

- Non-Fair trade farmers, however, don’t have such a guarantee.

Fair Trade products start on Certified farms.

Wine producers adhere to the same standards regardless of size

Examples of Unfair Trade ( World wide poverty)

• 1/2 the world population living in poverty--living less than $2 a day because of unfair trade!

Companies need to compete with exports, they can't afford to give safe working environment to the workers.

Worker's Premium

Ex. (Kenyan)

1970's growing economy and industries started to thrive.

1990's young industries and vulnerable farmers didn't stand a chance in competition with powerful countries

21st century -- devastated industries; mass unemployment; generation without education

More Kenyans live in poverty now than they did in 1970's.

Farms are paid a premium to adhere to Fair Trade standards

This money goes towards local infrastructure and better education

It is managed by workers who have been elected by their peers

Unfair Trade

Fair Trade

Suggestions

Facts of unfair trade--

Volunteering at the Global Village Store in Victoria downtown!!

Trade Not Aid

Around the world,many artisans and produces of product,such as cotton,coco,coffee,tea and handcrafts,are marginalized due to the regulations put in place by large western governments

--99% world trade is conducted by the west.

-- Western countries control the way trade is conducted through agreements and rules, that they have created to protect their own interests.

--impose trade regulations allowed cheap products to be dumped on poor countries leading markets

-- charge higher taxes on imported goods, so poor countries could only afford to export raw materials like coco and cotton

--poor countries only account for 0.4% of global trade

Fair Trade Canada strongly believes in the long term effects of trade not aid

This is the philosophy that stimulating a country's economy through trade will help exponentially more than foreign aid donations

Trade contracts ensure farmers with stability for the future

FUTURE JOB

Thank you

RESOURCES

1.https://www.google.ca/maps/place

2.http://www.victoriaglobalvillage.ca/

3.http://fairtrade.ca/en-ca/buying-fairtrade

etc.

4.http://wfto.com/jobs-internships-0

Fair Trade?

FAIR TRADE DAY

THANK YOU!

By Silvia, Shenyan, Tanvi, and Joy