Free Trade, Fair Trade and Human Rights


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Free Trade, Fair Trade and Human Rights

  1. 1. “ Shopping for Human Rights?”
  2. 2. Learning Intentions In this lesson you will learn…. <ul><li>What ‘trade’ is. </li></ul><ul><li>Why trade is a Human Rights issue. </li></ul><ul><li>The difference between Fair Trade and Free Trade. </li></ul><ul><li>The untold story behind many of the products you use…. </li></ul>
  3. 3. Copy these Focus Questions into your books <ul><li>Define ‘trade’ (leave a line) </li></ul><ul><li>The THREE reasons why trade can be a human rights issue are …(leave 4 lines) </li></ul><ul><li>Copy this table (you will need ½ a page) </li></ul>FREE TRADE FAIR TRADE DESCRIPTION ADVANTAGES DISADVANTAGES
  4. 4. What is trade? <ul><li>Trade is the buying and selling of goods and services. </li></ul><ul><li>It often involves buying a product from one country and selling it in another. </li></ul><ul><li>For example….. iPods are made in China for Apple. Apple then sell iPods to Auckland consumers… </li></ul>
  5. 5. Trade can be a Human Rights issue because: <ul><li>In some countries workers’ rights are not respected. </li></ul><ul><li>Poorer countries have not benefited from trade as much as wealthy countries. </li></ul><ul><li>Poverty in poorer countries can be made worse by unfair trade. </li></ul>
  6. 6. Three reasons why trade is a Human Rights issue: Reason One <ul><li>In some countries workers’ rights are not respected. </li></ul><ul><li>Companies want to get their products made in countries where wages are low. </li></ul><ul><li>This keeps the cost of production down, makes the product more affordable to consumers and allows companies to make larger profits. </li></ul><ul><li>However….. </li></ul>
  7. 7. <ul><ul><li>In some countries wages are low because the rights of workers are not protected. </li></ul></ul><ul><ul><li>The government may not enforce minimum wages, overtime pay or make companies pay attention to health and safety laws. </li></ul></ul>In 2006 an iPod factory in China was investigated. Many workers were working over 60 hours a week for around $30 a month. This picture shows the sleeping quarters.
  8. 8. Three reasons why trade is a Human Rights issue: Reason Two <ul><li>Poorer countries do not appear to be benefiting from trade as much as wealthy nations. </li></ul><ul><li>Many of the products traded globally are made in poorer parts of the world (such as Africa or South America). </li></ul><ul><li>Products like coffee, cocoa, diamonds and even some metals found in your cell phone all come from poorer countries. </li></ul><ul><li>Critics of global trade believe that poorer countries are not being paid the true value of these products. </li></ul>
  9. 10. The bigger the country, the wealthier it is…. Africa in 2015
  10. 11. Three reasons why trade is a Human Rights issue: Reason Three <ul><li>The people of poorer nations do not have much bargaining power. </li></ul><ul><li>Companies from wealthy nations can afford to shop around for the cheapest supplier. </li></ul><ul><li>Farmers and workers in poor nations have no bargaining power and have to accept the offers that come their way. </li></ul><ul><li>This may make escaping the ‘poverty trap’ more difficult. </li></ul>
  11. 12. Two models of trade: Free VS Fair <ul><li>Free Trade : Companies deal directly with the producers of goods. The main goal is to pay as little as possible for the product. </li></ul>MONEY COFFEE Free Trade A company like Nestle might agree to buy coffee from a farmer in Nicaragua. They will pay as little as possible and ‘shop around’ for the farmer who will accept the lowest price.
  12. 13. Free Trade Advantages Disadvantages <ul><li>The price paid is usually as low as possible (good for companies and shoppers!) </li></ul><ul><li>It encourages producers to make their product as cheaply as possible. </li></ul><ul><li>Producers have to accept a low price for their product. </li></ul><ul><li>This has meant that many farmers in poor countries have low living standards </li></ul><ul><li>Farmers may not earn enough to save and invest in better farming methods. </li></ul><ul><li>They may rely upon child labour to keep costs down </li></ul>
  13. 14. Two models of trade: Free VS Fair <ul><li>FAIR Trade : </li></ul><ul><li>Producers are paid a ‘fair’ price for their product. </li></ul><ul><li>The price is higher than average and allows them to improve their standard of living and invest in their businesses. </li></ul>
  14. 15. Fair Trade Advantages Disadvantages <ul><li>Producers earn enough to have a reasonable standard of living. </li></ul><ul><li>It may help prevent child labour because farmers can afford to educate their children. </li></ul><ul><li>Producers can afford to invest in their farms. </li></ul><ul><li>Fair Trade goods are usually more expensive. </li></ul><ul><li>Not all stores carry Fair Trade products. </li></ul>
  15. 16. Fair Trade Shops in Auckland <ul><li>Fair Trade chocolate is more expensive but: </li></ul><ul><li>The cocoa farmers are paid a fair price for their product. </li></ul><ul><li>They do not need to rely upon child labour. </li></ul><ul><li>For the first time in several generations their children are receiving an education </li></ul>Trade Aid stores in Auckland sell a range of products (including coffee, tea and chocolate).
  16. 17. Shopping for Human Rights! <ul><li>If we know more about the products we buy we can make informed decisions about: </li></ul><ul><li>Where we buy them from. </li></ul><ul><li>The questions we ask at shops “Excuse me – do you carry Fair Trade chocolate?” </li></ul><ul><li>How we behave when we are running businesses in the future… </li></ul>