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Fair Trade
3
Fair Trade and Direct Trade
Why does it exist?
What is Fair Trade?
- Imbalance of power in trading
- In conventional system, farmers are underpaid, and especially under free trade agreements (NAFTA, TPP)
- 500 food companies control 70% of choice (very little control for independent farmers)
Fair Trade Benefits
- less child labor
- better wages
- stable prices
-environmental stewardship
(tripple bottom line)
Fair Trade Criticisms
Trade in which producers in largely developing countries are paid a fair price
Fair trade:
- improves the lives of farmers
-reduces poverty
-establishes international fair trade standards
- develops global fair trade strategy
-large fees for being certified
-little actually reaches producers
- many are switiching from a fair
trade to direct trade model
- standards may be "dumbed" down to increase certification
How Fair Trade is Different
Direct Trade: an Alternative
Fair vs. Direct Trade
Each side to look up facts on fair or direct trade. Then argue for why yours is the preferred method.
- Can use course readings and/or information on internet.