1. Discuss the case for and against the establishment of
fair trade initiatives.

2. What is fair trade?
The definition of fair trade
“A trading partnership based on dialogue,
transparency and respect that seeks greater equity in
international trade.” by FINE

3. The aims of fair trade
1. To confirm that farmers and producers obtain fair and
stable prices for their products.
2. To encourage the promotion of product criteria, product
trade marks, working criteria, environmental and health
criteria.
3. To improve the living conditions of poor farmers who
could not manage to pay for the high production while
value of products are dropping.

4. Merits of fair trade
It could enhance the living condition of producers
and their families.
It could be an instrument to assist those who suffer
from natural disaster such as earthquakes and
drought.
It promotes campaign against conflicts and war which
are discussed by the UN.

5. Demerits of fair trade
It possibly deteriorates the circumstances of those who live in
developed countries, in contrast it accelerates the benefits of
those who take advantages from persons living under such an
inadequate conditions.

Tariffs are much lower for non-processed supplies than for
processed products, therefore it is possibly non-beneficial
producers to export, for instance, roasted coffee in place of
green coffee beans. Producer countries are discouraged to
invest on processing facilities, then interfering their industrial
development efforts.
Small size farmers or producers could only be verified fair
trade if they made supportive, organizations which are
dominated and donated to the social and economic
development of its members.

6. Conclusion
The fair trade initiatives have stabilized due to the
fact programmes were started by the organizations in
order to raise the standard of living conditions for
persons in developing nations.
The free trade is considered as fair, since the
numerous benefits are made by way of incentives and
subsidies that has been provided for producers in
developed countries.

7. Conclusion
The fair trade initiatives have stabilized due to the
fact programmes were started by the organizations in
order to raise the standard of living conditions for
persons in developing nations.
The free trade is considered as fair, since the
numerous benefits are made by way of incentives and
subsidies that has been provided for producers in
developed countries.