Fair Trade

[HawkeyeGS]

I recently was invited into a small college group supporting FairTrade. From what I have been reading it seems reasonably good and I was interested in finding out what everyone else knows about it and their views on it. I know it is pretty big in the UK (it is only small here in AUS).

Here is a link to some basic info:
http://en.wikipedia.org/wiki/Fair_trade

Thanks

Edit: Fair Trade is not Free Trade. Whilst Free Trade may be fair it is often considered the opposite to fair trade (which has elements of protectionism). It all depends upon the situation. IMO free trade is only fair when conducted between perfectly equal countries. If the US were to stich up a FTA with an African nation it would be unfair. Much like the current US-S.Korea FTA which has the farmers up in arms.

 

[ComradeDavo]

Yes I support free trade. People should be paid a fair wage for the work they do.

 

[JoeM]

Of course, fair trade is the only way trade can be fair.

It is worth pointing out though that some of the organisations capitalising on this opinion actually end up sustaining trade barriers. Basically the minority who care enough to do something about it think that buying coffee from Fair Trade will solve the problem, and end up doing no more about it.

As they are a minority the impact of a few bags of coffee beans on the multi-billion dollar industry is negligable.

 

[superisis]

free trade or fair trade?

 

[Panzeh]

Free trade all the way.

The only reason free trade isn't fair at present is because it isn't really free trade.

 

[ComradeDavo]

free trade or fair trade?

How about free trade that is actually fair?

Not free trade with trade barriers and tarrifs and multi-national companies paying wages of a $ a day...

 

[silver 2039]

Yes I strongly support fair trade. Too often do rich countries take advantage of developing countires. That must stop. Oxfam International is a good organzation that supports fair trade. Check out their website for details.

 

[superisis]

I bought a really nifty jacket at oxfam, so I support them!

 

[steviejay]

In my office there is both fairtrade tea and coffee and the run of the mill other stuff. In all honesty, given the choice, I'll always pick Nescafe, I just prefer it, but just because I say that doesn't mean I'm not for helping out the small farmers, I just find their coffee too dry

 

[ComradeDavo]

Buying fair trade products is one thing, actually voting for party's who support fair trade is another....

 

[El_Machinae]

I like the idea of fair trade. It, like organic food, is actually a type of brand name, but that doesn't diminish its benefits.

Making supply chains shorter, and getting money to people who'll invest it effectively makes excellent sense to me.

 

[silver 2039]

Free trade all the way.

The only reason free trade isn't fair at present is because it isn't really free trade.

Care to elucidate?

 

[ComradeDavo]

Care to elucidate?

This is a simple explanation....i'd be grateful if someone could go into more detail on it...

By having trade barries and tarrifs, free trade isn't really 'free' because it is restricted.

Basiclaly, say you were from a small African nation, and you wanted to sell something to people in the United States, well your goods would be heavily taxed thus making them alot more expensive than goods from American companies.

So, by removing barries and so forth, real free trade would then become fair trade becaue peopel would all be on the same playing field as far as the cost of their proucts go.

 

[silver 2039]

This is a simple explanation....i'd be grateful if someone could go into more detail on it...

By having trade barries and tarrifs, free trade isn't really 'free' because it is restricted.

Basiclaly, say you were from a small African nation, and you wanted to sell something to people in the United States, well your goods would be heavily taxed thus making them alot more expensive than goods from American companies.

So, by removing barries and so forth, real free trade would then become fair trade becaue peopel would all be on the same playing field as far as the cost of their proucts go.

And on the flip side, the much more powerful US economy would be able to sell in an African nation far easier than an African could sell in the US, thus overpowering the local economy with their cheaper and superior goods, and driving local companies out of buisness thus dominating the market. A developing nation exposed to a Western economy without tariffs would become an economic colony.

 

[Panzeh]

This is a simple explanation....i'd be grateful if someone could go into more detail on it...

By having trade barries and tarrifs, free trade isn't really 'free' because it is restricted.

Basiclaly, say you were from a small African nation, and you wanted to sell something to people in the United States, well your goods would be heavily taxed thus making them alot more expensive than goods from American companies.

So, by removing barries and so forth, real free trade would then become fair trade becaue peopel would all be on the same playing field as far as the cost of their proucts go.

I'll have to add to this explanation that the developed world subsidizes their agriculture. This hurts the less developed countries because they cannot make much money off their own agriculture by selling to western countries.

 

[silver 2039]

I'll have to add to this explanation that the developed world subsidizes their agriculture. This hurts the less developed countries because they cannot make much money off their own agriculture by selling to western countries.

Indeed and the WTO demands developing countries stop subsdizing agriculture and opening their markets, when they themselves don't do that. (Just look at all the furor in Europe or Mittals aqusition of Acrelor)
The WTO is a tool of rich nations to exploit the poor.

 

[Samson]

I am generally into the idea of fair trade. I do however have a couple of problems with it;

The coffee is just not good enough for me. I generally drink lavazza black (or gold or club if I am feeling flush), an I have not found a fair trade one that come close in quality.

On many of the products the extra you pay in the shop is much more than the extra the growers get. There is an argument that the stability of price is worth more than the absolute amount, but I cannot bring myself to give the companies that much more, esp. when the product is inferior. I would rather give a little more to 3rd world charity.

I agree with other posters that free trade is much more important. Get rid of the CAP.

 

[Till]

I've been buying fair trade coffee for some time now. Good stuff. But as JoeM pointed out, the impact is small.
Nothing compared to what would happen, if the EU did away with the CAP and opened her markets for food products from the 3rd world, for instance..

 

[Urederra]

A friend of mine works in a fair trade shop in Spain, as a catholic charity thing, he has another profitable (for him) job. (man, I am surronded by catholic neo-commies (just kidding)). still, I don't have a formed opinion yet. He told me the main problem to sell products from south-america is the lack of infraestructure. For example, they sell jam made of exotic fruits, but their main problem is to buy jars to bottle the jam they produce because there is only one factory that produces jars in the zone, and their supply is not guaranteed neither cheap.

Other problem i see is the shipping costs. With low shipping volume the shipping adds cost to the final product, so at the end their jam is expensive because of the bottling and shipping. So, if you want exotic fruit jam, be prepared to pay an extra, if you can't afford it, then go to the national strawberry jam (produced in Lepe from strawberries harvested by cheaply paid Polish female workers).

I also have heard that the problem with coffee is that there is too much. Some years ago there was a sort of "demonstration" in Madrid where coffee producers were giving away coffee. They claimed that they cannot sell it. Apparently, coffee bushes need 3 - 4 years of growing before being productive, and many local farmers planted coffee bushes in south america when there was high demand. Now, it seems that the offer is way bigger that the demand and there is a surplus they cannot sell, and this is after growing the coffee bushes for three years. They are trapped because changing to another plant/fruit would be risky too.

 

[HawkeyeGS]

Fair Trade is not Free Trade. Whilst Free Trade may be fair it is often considered the opposite to fair trade (which has elements of protectionism). It all depends upon the situation. IMO free trade is only fair when conducted between perfectly equal countries. If the US were to stich up a FTA with an African nation it would be unfair. Much like the current US-S.Korea FTA which has the farmers up in arms. If you need any more info please read the wiki page (good old Wiki)