What impact does fair trade have on people?

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.

From http://www.maketradefair.com

The debate• You will be taking part in a debate• One group will work with Mrs Robertson, arguing

that Fairtrade has a positive impact on people• One group will work with Mrs Owen, arguing that

Fairtrade has a negative impact on people• You will be given an outline of this presentation.

Annotate it to show how you can justify the point made

• You will then be ready to take part in the debate!

Fair trade benefits the producers in poorer countries

• Fair trade increases the amount of money paid to the workers, for example…

Fair trade doesn’t pay the producers in poor countries enough

• Although the workers in poor countries receive more money than they would if they weren’t involved in fair trade, the amount they are paid is still pitiful, for example…

The social premium charged on fair trade goods enables communities to build schools etc

• When you buy a fair trade product some of the money charged forms a social premium, which is spent to improve the communities that the producers live in.

• An example of this is…

The social premium is just an excuse for not paying producers more

• If the producers received truly fair pay for their work they wouldn’t need to receive the charity of the social premium.

• The alternative would be…

To earn the fair trade mark companies have to treat their workers well

• To be approved as a fair trade supplier companies have to show…

• This benefits the workers because…

Companies have received the fair trade mark without passing the benefits on to their workers

• Newspaper reports have claimed that some companies have received fair trade status without being properly inspected, for example…

Fair trade producers work in an environmentally sustainable way

• Fair trade producers often take care to produce their goods sustainably; many use organically grown products.

• This provides a healthier environment for local people and farm workers.

• An example of this is…

Fair trade may not be environmentally sustainable trade

• Fair trade doesn’t always mean organic etc.• Most fair trade products are transported vast

distances to get them from producers in LEDCs to the customers in MEDCs.

• This causes a large carbon footprint.• For example…

Supermarkets stocking fair trade goods show that they are trying to be ethical

• Many supermarkets are now stocking fair trade goods, showing that they want to play a part in helping producers to earn more.

• An example of this is…

Supermarkets are exploiting fair trade producers for bigger profits

• Supermarkets charge much more for fair trade goods, but only pass a small amount of this extra money on to the producer.

• Supermarkets in the UK make obscene profits.• For example…

It makes customers happy to buy fair trade goods

• When customers buy fair trade goods they feel happy because they know that they are helping a poor producer to improve their quality of life.

• For example…

Customers are tricked into thinking they are making a difference by buying fair trade goods

• Buying fair trade goods only provides a marginal improvement for producers.

• It would be much better for customers to put pressure on governments and supermarkets to trade in a truly fair manner with people from poorer countries.

• This could be done by…

Fair trade could be made even more sustainable by…

• • • • • • •

Fair trade needs to become more sustainable by…

• • • • • • •

What is your view?

• The second after school session focussing on Fair trade is on 17th September

• We would like you to think carefully about fair trade before this session, carrying out further research

• Decide what you view of fair trade is and be prepared to share this during the next session

• Remember that you need to justify each point

Some sources of information

• Fair trade foundation - http://www.fairtrade.org.uk/ • Fair trade clothing – www.peopletree.co.uk • Oxfam and fair trade -

http://www.oxfam.org/en/campaigns/trade • Complicated, but interesting -

http://www.ecolo.asso.fr/textes/20020313equiang.htm • Interesting, but how is this biased? See

http://www.cuca.org.uk/2007/11/05/the-problem-of-fair-trade/ • Are consumers being conned? See

http://www.telegraph.co.uk/comment/columnists/janetdaley/3555412/Forget-Fairtrade---only-free-trade-can-help-poor.html